Credit Cards and Choosing One
12:57 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 main sorts of credit card very common in America. The first major 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 sort 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 methods: 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 sort of card is the retail store card, such as Sears, J.C. Penney, Shell or Mobil. These store cards and those from gas companies, widely known as fuel cards, are only taken in specific countries. They usually do not carry annual charges. There is a large disparity in the terms and conditions for these cards.
Different sorts 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 requirements, you should review a few options.
How to Choose a Credit Card.
Credit cards are a part of everyday living for most people living in the west. It's becoming increasingly impossible to avoid them, especially for business men. So, if this 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 may not remain fixed indefinitely, it's always best for beginners to go for the one charging the least interest.
Make sure you study the small print carefully, especially with regard to 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.
You ought to compare the services such as the cash back incentives, guarantees, rebates and such like and check whether the card is accepted broadly enough to fit in with 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 involving 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).
The second major sort 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 methods: 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 sort of card is the retail store card, such as Sears, J.C. Penney, Shell or Mobil. These store cards and those from gas companies, widely known as fuel cards, are only taken in specific countries. They usually do not carry annual charges. There is a large disparity in the terms and conditions for these cards.
Different sorts 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 requirements, you should review a few options.
How to Choose a Credit Card.
Credit cards are a part of everyday living for most people living in the west. It's becoming increasingly impossible to avoid them, especially for business men. So, if this 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 may not remain fixed indefinitely, it's always best for beginners to go for the one charging the least interest.
Make sure you study the small print carefully, especially with regard to 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.
You ought to compare the services such as the cash back incentives, guarantees, rebates and such like and check whether the card is accepted broadly enough to fit in with 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 involving 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).
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