Credit Cards and Choosing One
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 main kind of credit card is travel and entertainment cards such as American Express or Diners Card. These have to be repaid in full at the end of the month and are generous on spending limits.
The second major sort of credit card is the bank card such as Visa, Master Cards, GM, and Ford cards sponsored mainly 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 may either pay 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 kind of card is the retail store card, such as Sears, J.C. Penney, Shell or Mobil. These store cards and those issued by gas companies, which are usually known as fuel cards, are only taken in specific countries. They usually do not have annual fees. There is a large variance in the terms and conditions for these cards.
Different kinds 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 type of credit card fits your needs, you should look over a few options.
How to Select your Credit Card.
Credit cards are a part of everyday life for most people living in the western countries. It’s becoming increasingly impossible to avoid them, especially for business men. So, if it is the first time you are about to enter into the realm of credit cards, here are some of the basics you ought to look out for.
First, compare the interest charged on all the credit cards you are interested in. While the rate will not stay fixed for ever, it’s always better for novices to apply for the one charging the least interest.
Make sure you read the fine print carefully, especially on the other charges that may 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 appropriate for a person of your income. Furthermore, the fewer credit cards you use, the better placed you will be to track 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 taken widely enough to suit your requirements.
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 period of time the card issuer allows you before they commence charging you interest on your purchases. (Not all credit card issuers give a grace period).
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