Almost everyone over the age of consent (18 or 21) has or wants a credit card nowadays and they are accepted in almost every establishment. There are three major types of credit card in use 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 repaid completely at the end of the month and are generous on spending limits.
The second major type of credit card is the bank card such as Visa, Master Cards, GM, and Ford cards sponsored mostly 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 kind 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 have annual charges. There is a wide disparity 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 type of credit card fits your needs, you should look over a few options.
How to Select your Credit Card.
Credit cards are 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 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 better for beginners to go for the one charging the lowest rates.
Read the small 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 kick in.
You should decide what spending limit is most appropriate for someone on your income level. Furthermore, the fewer credit cards you have, the better placed you will be to track your spending pattern.
You should compare the services and other features such as the cash back incentives, or warranties, rebates and such like and check whether the card is taken widely enough to suit your needs.
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 involving the transaction. 3] Period of Grace: This is the length of time the card issuer gives you before they begin charging you interest on new purchases. (NB: not all credit card issuers give a grace period). - 29904
The second major type of credit card is the bank card such as Visa, Master Cards, GM, and Ford cards sponsored mostly 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 kind 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 have annual charges. There is a wide disparity 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 type of credit card fits your needs, you should look over a few options.
How to Select your Credit Card.
Credit cards are 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 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 better for beginners to go for the one charging the lowest rates.
Read the small 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 kick in.
You should decide what spending limit is most appropriate for someone on your income level. Furthermore, the fewer credit cards you have, the better placed you will be to track your spending pattern.
You should compare the services and other features such as the cash back incentives, or warranties, rebates and such like and check whether the card is taken widely enough to suit your needs.
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 involving the transaction. 3] Period of Grace: This is the length of time the card issuer gives you before they begin charging you interest on new purchases. (NB: not all credit card issuers give a grace period). - 29904
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