Types Of Credit Cards
October 30, 2008
Are all the credit cards the same? Find out the different types of credit cards available before you check out the deals offered by different banks and merchants. It is then easier to select a suitable credit card.
Those who need to entertain clients or travel on short notices may require more funds and it is difficult if you have a fixed spending limit. Charge cards will be of good use to you as they do not have credit limits for your spending. They offer short term loans without penalties if you pay off the entire amount every month. American Express and Diners Cards are such travel and entertainment cards. American Express has other payments options available for you to make your payments over a longer period of time. Some people may use the terms ‘charge cards’ and ‘credit cards’ interchangeably, but there are differences to the two.
Many of us should be quite with credit cards, the second type of major cards available in the market. The main credit card companies are Visa and Master Cards, and they work together with banks to issue the credit cards to the consumer. The banks will determine the spending limit on your cards based on your income level. Different terms and conditions apply to different types of cards. If you only pay the minimum amount for your credit card payment, be prepared to fork out hefty sums that stemmed from your interest payments and new purchases. This may add up to quite a huge sum due to the high interest rates as these are unsecured loans.
Business Credit Cards are another type of cards. These cards are meant for those with small businesses, although some banks give them to their customers holding personal credit cards. These cards tend to have lower interest rates and higher spending limits. Cash flow issues can be easily resolved for small business with business credit cards as you can pay the bills over an extended period.
Last but not least, various major companies offer retail store cards. Some are linked to shopping malls or other retail stores or we have fleet cards, for various fuel purchases as well. Since there are so many different types of retail store cards, the terms and conditions are definitely different. Only certain countries accept such cards.
Since various types of credit cards offer different conditions and payment options, you need to decide what cards such as charge cards, credit cards, business credit cards and retail store cards are suitable for you.
Tags: credit repair
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