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 major kinds 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 completely at the end of the month and are liberal 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 parlance, 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 an interest.
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 accepted in some countries. They hardly ever 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 sort of credit card fits your needs, you should review 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 charged by all the credit cards you are interested in. While the rate will not stay fixed indefinitely, it's always better for novices to apply for the one charging the lowest interest 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.
You should decide which spending limit is most appropriate for someone of your income level. 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 do yourself a favour by familiarizing yourself with the following terms: 1] Annual Percentage Rate: this is the measure of the yearly cost of the credit. 2] Finance Charges: these are the total charges of the transaction. 3] Period of Grace: This is the period the issuer gives you before he starts charging you interest on new purchases. (Note that not all credit cards have a grace period). - 21393
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 parlance, 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 an interest.
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 accepted in some countries. They hardly ever 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 sort of credit card fits your needs, you should review 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 charged by all the credit cards you are interested in. While the rate will not stay fixed indefinitely, it's always better for novices to apply for the one charging the lowest interest 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.
You should decide which spending limit is most appropriate for someone of your income level. 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 do yourself a favour by familiarizing yourself with the following terms: 1] Annual Percentage Rate: this is the measure of the yearly cost of the credit. 2] Finance Charges: these are the total charges of the transaction. 3] Period of Grace: This is the period the issuer gives you before he starts charging you interest on new purchases. (Note that not all credit cards have a grace period). - 21393
About the Author:
If you are considering changing or getting a Credit Card, have a look at the free advice on our web site on using Credit Cards wisely.
posted by X - Men @ 3:02 AM
0 Comments
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home