Almost everyone over the age of 18 (or 21) has or wants a credit card these days and they are taken in almost every establishment. There are three major sorts of credit card in use in America. The first major sort of credit card is travel and entertainment cards such as American Express or Diners Card. These have to be repaid 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 Master Cards, Visa, GM, and Ford cards sponsored mostly by the banks. The bank defines the spending limits, which in bank parlance, is known as the credit line and each offers different terms and conditions. Banks offer a choice of payment methods: either pay the balance in full with no interest or pay the minimum or some part of the balance with a finance charge.
The other major sort 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 usually do not carry annual charges. There is a wide variance in the terms and conditions for these cards.
The various types of credit cards offer different opportunities. Some are geared toward individual consumers, while others are designed in ways that work best for small business needs. To know what kind of credit card fits your needs, you should review a few options.
How to Select your 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 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 chargeable on all the credit cards for which you are eligible. While the rate will not remain fixed for ever, it’s always advisable for first timers to go for the one charging the lowest rates.
Make sure you study the fine print carefully, especially regarding 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 such like. Check whether the card is widely enough accepted to cater for your needs.
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 allows you before he starts charging you interest on new purchases. (Note that not all credit cards have a grace period).
No related posts.
Related posts brought to you by Yet Another Related Posts Plugin.
Tags: advice, auto, banking, Credit, credit cards, debt, Finance, funds, Loans, money, Mortgage, other, self help, shopping