posted by on Sep 19
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 different banks and merchants. It is then easier to select a suitable credit card.
If you need to entertain your guests or make business trips frequently, the amount you spend may differ from one month to another. Charge cards will be of good use to you as they do not have credit limits for your spending. They offer short term loans which have no penalties if you pay off in full every month. 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 are extremely familar 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. 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. Due to the nature of unsecured loans, interest rates are considerably higher and over time, they may add up to huge sums.
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. Cash flow issues can be easily resolved for small business with business credit cards as you can pay the bills over an extended period.
Finally, we have retail store cards from various major companies. 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. These cards are usually only accepted in specific countries.
Since different 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 suit you best.
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