Credit Cards and Choosing One
1:54 AM
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 major sort 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 generous on spending limits.
The second major kind 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 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 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 variance in the terms and conditions for these cards.
Different sorts 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 kind of credit card fits your needs, you should review a few options.
How to Select a Credit Card.
Credit cards have become a part of everyday living for most people who live 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 by all the credit cards you are interested in. While the rate may not stay fixed for ever, it's always best for novices to apply for the one charging the least interest.
Make sure you study the fine print carefully, especially with regard to 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 kick in.
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 track 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 of the transaction. 3] Period of Grace: This is the period of time the card issuer gives you before they begin charging you interest on new purchases. (NB: not all credit card issuers allow a grace period).
The second major kind 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 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 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 variance in the terms and conditions for these cards.
Different sorts 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 kind of credit card fits your needs, you should review a few options.
How to Select a Credit Card.
Credit cards have become a part of everyday living for most people who live 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 by all the credit cards you are interested in. While the rate may not stay fixed for ever, it's always best for novices to apply for the one charging the least interest.
Make sure you study the fine print carefully, especially with regard to 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 kick in.
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 track 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 of the transaction. 3] Period of Grace: This is the period of time the card issuer gives you before they begin charging you interest on new purchases. (NB: not all credit card issuers allow a grace period).
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