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 main kinds of credit card common in America. The first main sort of credit card is travel and entertainment cards such as American Express or Diners Card. These have to be repaid completely by the end of the month and are liberal on spending limits.
The second major kind 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 speak, is known as the credit line and each bank offers different terms and conditions. Banks offer a selection of payment means: you may either repay the balance in full with no interest charges or pay the minimum (or some part of the balance) with an interest.
The other major type 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 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 designed in ways that work best for small business needs. To know what type of credit card fits your needs, you should review a few options.
How to Select your Credit Card.
Credit cards have become a part of everyday living for most people living 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 on all the credit cards you are interested in. While the rate will not remain fixed for ever, it’s always best for beginners to go for the one charging the least interest.
Make sure you read the fine print carefully, especially on the other charges that can be made, like late-payment fees, annual fees, and whether there is a grace period.
Decide which spending limit is most appropriate 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 needs.
You will help yourself by acquainting yourself with the following terms: 1] Annual Percentage Rate: this is the annual cost of the credit. 2] Finance Charges: these are the total charges of the transaction. 3] Period of Grace: This is the length of time the card issuer allows you before they begin charging you interest on new purchases. (NB: not all credit card issuers allow a grace period).
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