Almost everyone over the age of 18 (or 21) has or wants a credit card these days and they are accepted in almost every establishment. There are three main sorts 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 paid in full by the end of the month and are generous on spending limits.
The second major kind 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 the ones from gas companies, which are known as fuel cards, are only accepted in specific countries. They usually do not carry annual charges. There is a wide 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 sort of credit card fits your needs, you should review a few options.
How to Choose your Credit Card.
Credit cards are a part of everyday living 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 by all the credit cards for which you are eligible. While the rate may not remain fixed indefinitely, 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 can be applied, like late-payment fees, annual fees, and whether there is a grace period which is normally given before the finance charges are applied.
Decide which 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.
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 annual 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).
The second major kind 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 the ones from gas companies, which are known as fuel cards, are only accepted in specific countries. They usually do not carry annual charges. There is a wide 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 sort of credit card fits your needs, you should review a few options.
How to Choose your Credit Card.
Credit cards are a part of everyday living 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 by all the credit cards for which you are eligible. While the rate may not remain fixed indefinitely, 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 can be applied, like late-payment fees, annual fees, and whether there is a grace period which is normally given before the finance charges are applied.
Decide which 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.
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 annual 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).
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