Almost everyone over the age of consent has or wants a credit card these days and they are accepted almost everywhere. There are three major sorts of credit card very common in America. The first main 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 type of credit card is the bank card such as Visa, Master Cards, GM, and Ford cards distributed mostly by the banks. The bank defines the spending limit, which in bank speak, is known as the credit line and each bank offers different terms and conditions. Banks offer a choice of payment means: you can either repay the balance in full with no interest charges or pay the minimum (or some part of the balance) with a finance charge.
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 accepted in specific countries. They usually do not carry annual charges. There is a wide disparity in the terms and conditions for these cards.
Different sorts of credit cards offer different options. Some are designed for individual consumers, while others are designed in ways that work best for small business needs. To know what sort of credit card fits your needs, you should look over a few options.
How to Select a Credit Card.
Credit cards are a part of everyday life for most people who live in the west. It's becoming increasingly impossible to avoid them, especially for business men. So, if it 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 may not remain fixed for ever, it's always advisable for first timers to go for the one charging the lowest rates.
Read the fine print carefully, especially on the other charges that can be applied, like late-payment fees, annual fees, and whether there is a grace period which is normally given before the finance charges are applied.
Decide what spending limit is most suitable for a person of your income. Furthermore, the fewer credit cards you use, the better placed you will be to understand your spending pattern.
You ought to compare the features such as the cash back incentives, guarantees, rebates and such like and check whether the card is taken broadly enough to fit in with your requirements.
You will help yourself by acquainting yourself with the following terms: 1] Annual Percentage Rate: this is the yearly cost of the credit. 2] Finance Charges: these are the total charges involving the transaction. 3] Period of Grace: This is the period of time the card issuer allows you before they commence charging you interest on new purchases. (NB: not all credit card issuers give a grace period).
The second major type of credit card is the bank card such as Visa, Master Cards, GM, and Ford cards distributed mostly by the banks. The bank defines the spending limit, which in bank speak, is known as the credit line and each bank offers different terms and conditions. Banks offer a choice of payment means: you can either repay the balance in full with no interest charges or pay the minimum (or some part of the balance) with a finance charge.
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 accepted in specific countries. They usually do not carry annual charges. There is a wide disparity in the terms and conditions for these cards.
Different sorts of credit cards offer different options. Some are designed for individual consumers, while others are designed in ways that work best for small business needs. To know what sort of credit card fits your needs, you should look over a few options.
How to Select a Credit Card.
Credit cards are a part of everyday life for most people who live in the west. It's becoming increasingly impossible to avoid them, especially for business men. So, if it 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 may not remain fixed for ever, it's always advisable for first timers to go for the one charging the lowest rates.
Read the fine print carefully, especially on the other charges that can be applied, like late-payment fees, annual fees, and whether there is a grace period which is normally given before the finance charges are applied.
Decide what spending limit is most suitable for a person of your income. Furthermore, the fewer credit cards you use, the better placed you will be to understand your spending pattern.
You ought to compare the features such as the cash back incentives, guarantees, rebates and such like and check whether the card is taken broadly enough to fit in with your requirements.
You will help yourself by acquainting yourself with the following terms: 1] Annual Percentage Rate: this is the yearly cost of the credit. 2] Finance Charges: these are the total charges involving the transaction. 3] Period of Grace: This is the period of time the card issuer allows you before they commence charging you interest on new purchases. (NB: not all credit card issuers give a grace period).
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