Things cheap and dear can be bought these days using credit. With the credit card, the buzzword is “charge it” and you can have nearly everything that your heart desires.
Consumer credit can aid you in achieving your financial goals or it can ruin you financially. The choice is yours. Though credit cards are a convenient way to pay, danger lurks everywhere. Credit cards create a “buy now, pay later” mentality that can lead to overspending and worse, even bankruptcy. Credit cards come in various forms and are issued by banks, finance companies, retail establishments and so on. These are some types of credit cards:
1. Bank Credit Cards
When used widely, credit cards can be an interest-free source of credit, provided bills are paid on time. They offer convenience and flexibility since they are widely accepted at many retail establishments. They are a source of emergency funds since it is possible to obtain cash advances at affiliated banks.
1. Bank Credit Cards
When used widely, credit cards can be an interest-free source of credit, provided bills are paid on time. They offer convenience and flexibility since they are widely accepted at many retail establishments. They are a source of emergency funds since it is possible to obtain cash advances at affiliated banks.
Not all Visa and MasterCard credit cards are the same. The difference in interest rates, in how they are computed and in annual fees can be substantial, from one bank to another.
2. Retail Credit cards
Retail credit cards on the other hand are issued by a variety of businesses including department stores, oil companies and car rental companies. A person who opens a retail charge account can buy goods from that place of business on credit. The cards charge low or no annual fee and many are easy to obtain since they are used as a marketing tool to increase business. Interest is charged on the unpaid balance.
Retail credit cards on the other hand are issued by a variety of businesses including department stores, oil companies and car rental companies. A person who opens a retail charge account can buy goods from that place of business on credit. The cards charge low or no annual fee and many are easy to obtain since they are used as a marketing tool to increase business. Interest is charged on the unpaid balance.
3. Travel and entertainment cards
“Don’t leave home without it”, the American Express advertisement has remained synonymous with this travel and entertainment card in the minds of many people. Travel and entertainment cards or charge cards such as American Express and Diners Club are widely accepted in establishments around the world. Besides the prestige of having these cards, the cardholder has access to cash advance facilities around the world and automatic travel insurance coverage when the fare is charged to the credit card.
“Don’t leave home without it”, the American Express advertisement has remained synonymous with this travel and entertainment card in the minds of many people. Travel and entertainment cards or charge cards such as American Express and Diners Club are widely accepted in establishments around the world. Besides the prestige of having these cards, the cardholder has access to cash advance facilities around the world and automatic travel insurance coverage when the fare is charged to the credit card.
4. Debit Cards
Debit cards have been around for some time, especially in America where many banks issue Visa or MasterCard as debit cards. Debit cards look like credit cards, however, instead of sending monthly bills, the bank transfer payments directly from the cardholder’s bank account as soon as it receives notice of charge.
Debit cards have been around for some time, especially in America where many banks issue Visa or MasterCard as debit cards. Debit cards look like credit cards, however, instead of sending monthly bills, the bank transfer payments directly from the cardholder’s bank account as soon as it receives notice of charge.
5. Other CardsAt Credit Card UK, your guide to credit cards, you can compare credit cards and apply credit cards online. It is your gateway to credit cards! You can find other types of cards such as Platinum Credit Cards, Balance Transfer Credit Cards, Charity Credit Cards, Loyalty Credit Cards, and so many more. Visit Credit Card Uk to know more types of credit cards available.
As there are a number of factors that affect the billing of credit cards, it pays for the cardholder to be aware of these factors to use them to his advantage. As the billing cycle of the credit card is readily known, the cardholder can extend the length of his credit by using the card on days that will give the longest use of the money without interest. By buying just after the billing date and paying in full just before the due date, the cardholder could potentially obtain up to eight weeks of free credit!
As there are a number of factors that affect the billing of credit cards, it pays for the cardholder to be aware of these factors to use them to his advantage. As the billing cycle of the credit card is readily known, the cardholder can extend the length of his credit by using the card on days that will give the longest use of the money without interest. By buying just after the billing date and paying in full just before the due date, the cardholder could potentially obtain up to eight weeks of free credit!
We know that many retail establishments pay charges to credit card companies for the privilege of serving customers who wish to use their credit cards to shop. These additional charges may be included in the retail price. Unfortunately, the person who pays by cash still pays this extra charge. It therefore pays to ask the retail establishment if they would be given a discount if the purchase is made by cash instead of credit card.
