Credit Card Types

Posted on October 2, 2008
Filed Under Credit Score | Leave a Comment

Are all the credit cards the same? Find out the different types of credit cards available before you find out more about the deals offered by various banks and merchants. This will assist you in determining which credit card suits you better.

If you need to entertain your guests or make business trips frequently, the amount you spend may differ from one month to another. Without spending limits, charge cards will be suitable for those who need to spend a lot of money on entertaining their clients. If you make the payments in full every month, you do not have to pay any charges on the short term loans. Diners Cards and American Express offer such cards for travel and entertainment. American Express has other payments options available for you to make your payments over some time. Due to the different schemes available, some people may use the terms interchangeably, but these two are basically different.

Many of us should be quite with credit cards, the second type of major cards available in the market. Visa and Master Card work with banks to issue 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. It is up to you to decide whether to pay the full amount each month, or just pay the minimum amount the bank has asked for, but you have to pay hefty interest charges on the money you rollover. This may add up to quite a huge sum due to the high interest rates as these are unsecured loans.

Business Credit Cards are the next type of cards. These cards may be useful to those for small businesses, but you do not need to own a business in order to receive such cards from the banks. These cards tend to have lower interest rates and higher spending limits. Small businesses with cash flow issues will be able to tide over tough times easily because there are extensions to the payments.

Finally, we have retail store cards from big companies. Such cards are issued by shopping malls and other retail stores, or we have fleet cards, for various fuel purchases as well. Since there is such a huge variety of retail store cards, the terms and conditions are definitely different. These cards are usually only accepted in specific countries.

You can select what type of cards, such as charge cards, credit cards, business credit cards and retail store cards, gives the best options for your needs since there are so many different types of terms and conditions and methods of payment.

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