 |
Types of Credit Cards
There are a whole variety of different types of credit cards
available which can make choosing the right one a very confusing
experience. In order to help you decide, listed below is a useful
breakdown of the various types of credit cards available.
Standard Credit Cards
Standard credit cards work as you might expect - with the
cardholder using the card in order to pay for goods and services
up to their agreed credit limit. Repayments are made once every
month which must at least cover the agreed minimum repayment.
These repayments will cover not only the capital borrowed but
also the interest and extraneous charges payable upon the amount
borrowed, usually referred to as annual percentage rate. Standard
credit cards should not be confused with debit cards where
transactions are charged directly to your current account.
Charge Cards
Charge cards work in the same way as normal credit cards with
one difference, the balance of the charge card must be paid off
in full every month. Charge cards are most regularly issued to
either businesses or to consumers who may have had a bad credit
history in the past. If you have a poor credit history then a
charge card might be offered to you because the full monthly
repayments would preclude spiralling debt. Charge cards are also
popular with the wealthy consumer as this sort of card can offer
credit practically without boundaries. It should be noted that if
the cardholder does not pay off their balance once a month as
required then they could incur very hefty fines.
Platinum and Gold Credit Cards
Platinum and Gold credit cards are only available to
applicants who earn a certain level of annual income and,
accordingly, offer a number of benefits to the cardholder which
will vary from provider to provider. Higher credit limits are
usually associated with these types of credit card. If you fall
into a higher income bracket and have a good credit history then
you will be able to benefit from the advantages that such a
credit card offers.
Store Card
A variation on the credit card, a store card will allow the
cardholder to make purchases with a particular retailer on a
credit account. The cardholder can then effectively buy products
without paying for them until a later date, when it is most
convenient for them. You will often be offered discounts on the
goods that you buy with a store credit card but it should be
noted that the interest charged on such cards are usually
extremely high. This is an area that you must be sure to look
into with prudence if you are considering obtaining; you might
find that the disadvantages outweigh the advantages.
Reward Credit Cards
Reward credit cards, or loyalty cards, operate in a similar
way to charity cards except that the main recipient of any
benefits is the credit cardholder. Incentives may include cash
bonuses, points, discounts and Air Miles. With this type of
credit card it is important that you think logically about the
rewards being offered, and work out exactly how much you will
need to spend on your credit card in order to reap the
benefits.
Charity Credit Cards
Charity credit cards offer all the usual benefits of a regular
credit card but also donates a particular percentage of what you
spend to the charity to which it is affiliated. These charity
donations are made at no extra cost to the cardholder and the
card allows consumers to help a good cause simply by spending
money in the way they always would. You can obtain credit cards
for a whole range of diverse charities as well as organisations
such as football clubs or universities.
You may freely reprint this article provided the author's
biography remains intact:
About The Author
John Mussi is the founder of Direct Online Loans who help UK
homeowners find the best available loans via the http://www.directonlineloans.co.uk
website.
MORE RESOURCES:
Credit - Google News
|
|
|
RELATED ARTICLES
Beware of Bogus Credit
Repair Companies!
So-called "credit repair" companies claim they can remove
negative information from credit reports. Advertising as
"Credit Advisors," "Credit Rating Correction Services" or
"Credit Consultants," they trumpet variations on this
message: "Turned down because of bad credit? We can help!"
Many of these companies charge hundreds if not thousands of
dollars for the promise to "clean up" bad credit reports.
Credit Repair Kit Sound
To Good To Be True? It Is.
A lot of people have bad credit. It is unfortunate that
good people with good intentions are sometimes lured into
credit card offers with outrageous interest rates or
convinced to buy a new, overpriced car that they cannot
afford.
Credit Counseling
Basics
Credit counseling is an option you might want to consider
if you are having financial problems. The stress can be
overwhelming when you have creditors calling you daily to
collect money that you simply don't have.
What You Need to Know
about Debt Negotiation on Credit Cards
Debt negotiation on credit cards is often referred to as
credit card debt settlement. Whenever you make a credit
card payment- or even pay your utility bills- it usually
gets reported to one- or all- of the three main credit
agencies.
Update Your Computer
System With Bad Credit Computer Financing
The moment I placed myself in front of the computer screen
a whole new world beckoned me to join it. And years of
strolling have proved incompetent to get me acquainted with
the full panorama of computers.
7 Consumer Credit Laws
You Should Know if You are Trying to Repair Your
Credit
There are seven consumer credit laws you should be aware
when dealing with your credit.1.
Debt Collection
Agencies
Debt collection agencies are often a viable option for
receiving payment on overdue bills. Here you can earn how
debt collection agencies work and what to look for in
reputable debt collection agencies.
5 Things Your Credit
Card Company Keeps Quiet About
Credit Cards can bankrupt you if you let them run away from
you. The various Credit Cards companies are in it for
profit so they will not generally alert you to things you
can do to save yourself money.
What Should I Do If I've
Become a Victim of Identity Theft?
Identity thieves take advantage of everyday opportunities
to discover your personal information and use it to commit
fraud or other crimes. The good news is a victim of
identity theft has more options today than ever before.
Credit Trap: What They
Dont Tell You About Credit Cards In College
In industrialized nations, going into debt starts early.
It's easy for an eighteen-year-old to get credit cards and
fall into debt, especially if they're headed for college.
3 Free Credit Reports
For You
If you were to tell someone that they can have a certain
item for free, more than likely their response would be,
"what's the catch?" In the case of credit reports there is
no catch, you can now get a free copy of this report
through the three credit reporting agencies: Equifax,
TransUnions, and Experian. Let's take a look at the law and
how you can benefit from it.
Looking for that Low
interest Credit Card?
If you have been shopping around for a Low Interest Credit
Card you will notice that the UK market is awash with
Credit Card companies offering low rates to entice you to
apply for their Cards.There has never been a better time to
consolidate your credit cards and get a far better interest
rate.
Minimize your Risk for
Identity Theft
Identity theft is the fastest growing crime in America.
According to the Federal Trade Commission, the number of
identity theft incidents reached 9.
Credit Problems? Heres
How to Manage Your Creditors
If you find that creditors are calling you almost daily or
that one of more of your bills has been turned over to a
collection agency, you should know how to manage your
debts.First, prioritize then or rank them in terms of the
ones that can give you the most trouble the soonest.
Useful Tips on Using
Credit Cards
Here are some useful tips on using credit cards. Whether
you shop online, by telephone or by mail, a credit card can
make buying many things much easier; but when you use a
credit card, it's important to keep track of your spending.
Finance - Money,
Money
Finance is a big word for some of us. It's a little scary.
Credit Card Is Adding
The Silver Lining To Your Pocket
In the new millennium plastic money or credit cards has
rendered a new zing factor to your pocket. This has not
only made you economically more flexible but subsequently
added glamour to your financial image as well.
How Businesss Mess Up
Their Credit Policies
In "Become the Squeaky Wheel" a book recently published,
Michelle Dunn demonstrates the major areas a business
should focus on to ensure a satisfactory customer
experience.One mistake business owners make is not having a
credit policy in place when they open their business.
ChexSystems: Who They
Are and How it Affects You
ChexSystems is a company that maintains a subscriber
membership service used in the banking industry. The
members consist mainly of Banks, and Credit Unions, but can
include other types of Financial Institutions.
Beginners Guide to
Credit
I remember back when I was 18 and completely oblivious to
the concept of credit. It seems like eons ago! If only I
had known then what I know now about credit.
|
|
