Almost everyone over the age of consent has or wants a credit card these days and they are accepted almost everywhere. There are three main kinds of credit card very common in America. The first major type of credit card is travel and entertainment cards such as American Express or Diners Card. These have to be paid in full at the end of the month and are generous on spending limits.
The second major kind of credit card is the bank card such as Visa, Master Cards, GM, and Ford cards distributed mainly by the banks. The bank defines the spending limit, which in bank parlance, is known as the credit line and each bank offers different terms and conditions. Banks offer a selection of payment means: you may either repay the balance in full with no interest charges or pay the minimum (or some part of the balance) with an interest.
The other major type of card is the retail store card, such as Sears, J.C. Penney, Shell or Mobil. These store cards and those from gas companies, widely known as fuel cards, are only taken in specific countries. They usually do not have annual fees. There is a wide variance in the terms and conditions for these cards.
Different types of credit cards offer different options. Some are geared toward individual consumers, while others are set up in ways that work best for small business needs. To know what type of credit card fits your needs, you should look over a few options.
How to Select a Credit Card.
Credit cards have become a part of everyday life for most people who live in the western countries. It's becoming increasingly impossible to avoid them, especially for business men. So, if this is the first time you are thinking of entering into the world of plastic money, here are some of the basic things you should look out for.
First, compare the interest chargeable by all the credit cards for which you are eligible. While the rate will not remain fixed indefinitely, it's always advisable for first timers to go for the one charging the lowest rates.
Make sure you read the fine print carefully, especially with regard to the other charges that can be made, like late-payment fees, annual fees, and whether there is a grace period.
Decide what spending limit is most appropriate for a person of your income. Furthermore, the fewer credit cards you have, the better placed you will be to understand your spending pattern.
You should compare the services and other features such as the cash back incentives, or warranties, rebates and the like and check whether the card is accepted widely enough to suit your needs.
You should acquaint yourself with the following terms: 1] Annual Percentage Rate: this is the annual cost of the credit. 2] Finance Charges: these are the total charges of the transaction. 3] Period of Grace: This is the length of time the card issuer gives you before they begin charging you interest on your purchases. (Not all credit card issuers give a grace period).
The second major kind of credit card is the bank card such as Visa, Master Cards, GM, and Ford cards distributed mainly by the banks. The bank defines the spending limit, which in bank parlance, is known as the credit line and each bank offers different terms and conditions. Banks offer a selection of payment means: you may either repay the balance in full with no interest charges or pay the minimum (or some part of the balance) with an interest.
The other major type of card is the retail store card, such as Sears, J.C. Penney, Shell or Mobil. These store cards and those from gas companies, widely known as fuel cards, are only taken in specific countries. They usually do not have annual fees. There is a wide variance in the terms and conditions for these cards.
Different types of credit cards offer different options. Some are geared toward individual consumers, while others are set up in ways that work best for small business needs. To know what type of credit card fits your needs, you should look over a few options.
How to Select a Credit Card.
Credit cards have become a part of everyday life for most people who live in the western countries. It's becoming increasingly impossible to avoid them, especially for business men. So, if this is the first time you are thinking of entering into the world of plastic money, here are some of the basic things you should look out for.
First, compare the interest chargeable by all the credit cards for which you are eligible. While the rate will not remain fixed indefinitely, it's always advisable for first timers to go for the one charging the lowest rates.
Make sure you read the fine print carefully, especially with regard to the other charges that can be made, like late-payment fees, annual fees, and whether there is a grace period.
Decide what spending limit is most appropriate for a person of your income. Furthermore, the fewer credit cards you have, the better placed you will be to understand your spending pattern.
You should compare the services and other features such as the cash back incentives, or warranties, rebates and the like and check whether the card is accepted widely enough to suit your needs.
You should acquaint yourself with the following terms: 1] Annual Percentage Rate: this is the annual cost of the credit. 2] Finance Charges: these are the total charges of the transaction. 3] Period of Grace: This is the length of time the card issuer gives you before they begin charging you interest on your purchases. (Not all credit card issuers give a grace period).
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