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 paid in full at the end of the month and are liberal on spending limits.
The second major sort 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 speak, is known as the credit line and each bank offers different terms and conditions. Banks offer a selection 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 sort of card is the retail store card, such as Sears, J.C. Penney, Shell or Mobil. These store cards and the ones from gas companies, which are known as fuel cards, are only accepted in specific countries. They usually do not carry annual fees. There is a wide disparity 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 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 Choose a Credit Card.
Credit cards have become a part of life for most people living in the west. It's becoming increasingly impossible to avoid them, especially for business men. So, if it is the first time you are seeking to enter 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 small 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 kick in.
Decide which spending limit is most appropriate for a person of your income. Also the fewer credit cards you have, the better placed you are to understand your spending.
Compare the services and other features such as the cash back incentives, or warranties, rebates and the like. Check whether the card is widely enough accepted to cater for 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 involving the transaction. 3] Period of Grace: This is the period the issuer allows you before he starts charging you interest on new purchases. (Note that not all credit cards have a grace period). - 21393
The second major sort 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 speak, is known as the credit line and each bank offers different terms and conditions. Banks offer a selection 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 sort of card is the retail store card, such as Sears, J.C. Penney, Shell or Mobil. These store cards and the ones from gas companies, which are known as fuel cards, are only accepted in specific countries. They usually do not carry annual fees. There is a wide disparity 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 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 Choose a Credit Card.
Credit cards have become a part of life for most people living in the west. It's becoming increasingly impossible to avoid them, especially for business men. So, if it is the first time you are seeking to enter 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 small 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 kick in.
Decide which spending limit is most appropriate for a person of your income. Also the fewer credit cards you have, the better placed you are to understand your spending.
Compare the services and other features such as the cash back incentives, or warranties, rebates and the like. Check whether the card is widely enough accepted to cater for 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 involving the transaction. 3] Period of Grace: This is the period the issuer allows you before he starts charging you interest on new purchases. (Note that not all credit cards have a grace period). - 21393
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If you are considering changing or applying for a Credit Card, check out the free advice on our web site on using Credit Cards wisely.
posted by X - Men @ 5:18 AM
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