Credit, for some time now was the cornerstone of the economy. Shows that it is estimated the survey, and have at least 12 credit card charge card, including the average American home. One credit card, but there may be a tendency to think that it is quite the same as the next, there are different characteristics of the actual facts of each different type of credit card. Credit card bank, travel, (although becoming more common cards, travel and entertainment combination of recently) credit card, entertainment credit card, retail credit: it is these differences between the cards of three different types of market card or house is good to know.
Bank credit card
Perhaps, most credit card noticed that with a Visa or MasterCard logo of either along with the name of the bank. Credit card seems to be that it has been issued by either MasterCard or Visa. These two companies will not issue a credit card directly to consumers: it is not a fairly accurate assumption. Credit card in the market, most of today, has been provided by thousands of banks around the world. Unless they are union members, because it is not authorized to issue any kind of card, each bank, has been linked to the credit card associations.
Though it is preparing to go public, Visa is an association of private members. It was started as a bank in California and the west coast of the association. Financial institutions is through the membership roll of 20,000 there, to provide virtually all of those VISA card. There is a membership association, similar to Visa, were made up of MasterCard member banks in the Middle East is also originally.
The bank's credit card, in reality, are revolving credit line. When you receive your statement, you can pay all or part of the monthly balance, and then run again as a balance. Because the credit line, to the account, a pre-determined depending on the important factors as low as I can be as high as $ 100 or thousands of dollars in disposable income, credit history, etc., is an upper limit of the credit credit limit is included.
If you do not have a revolving credit line to manage them properly, that the owner card to get yourself into trouble is possible. When you run the balance of the repayment to it instead of you, your credit card issuer will start charging interest on that balance - in some cases, this concern may be the fairly steep. Interest rates by the person who issued the card, but very different, you may expect that an average credit card interest rate is about 18%.
If you carry a balance of $ 1,000 over the next 12 months, for example, you will pay monthly interest of $ 180 or $ 15 a year. Your savings account if you want to maintain a thousand dollars, you can earn about $ 40 in annual interest. People get in trouble, but there is a need to reduce the debt, in order to go about this, one of the more general way, arrange for credit card debt consolidation you can reduce the interest burden is to.
Travel and entertainment card
Travel and entertainment card in the sense that you can purchase the owner to charge a variety of stores and locations is similar to the credit card of the bank. Since they have been provided directly by the credit card company Diners Club, American Express and that is, however, they also bank and credit card is different.
This type of credit card, once mainly, was adopted by the airline travel and entertainment related businesses, hotels, restaurants, and car rental. Recently, luxury department stores, drug stores, such as gas stations and such, all other facilities, to accept them. Like a card all banks, cards, a menu of insurance collision insurance and luggage to the car features the owner of the credit card for most, such as mileage have come to expect, was borrowed, travel and entertainment typical of today offers.
Difference is that the entertainment does not have a travel card line of credit extended further between card, bank card, travel and entertainment. To stay current account, for this purpose, it means that within one or two billing periods, you need to pay your full balance you.
American Express and Diners Club as such, even credit card provider of travel and entertainment, and provides a summary of the classification of expenses charged to the credit card at the end of each year. This is certainly useful when tax.
Credit card issued by a particular store
Unlike banks and credit card, your card, house card is accepted at a particular store or stores within the same chain, travel and entertainment can be used in many place of purchase. House card (also called a retail charge card) is the second largest category of credit cards, the issuer of the main house, which includes department stores, oil and gas company, telephone company. Until it is purchased through a financial institution to become a different credit card companies, was probably the largest house of cards, find the card that once belonged to Sears.
These cards are as valuable in helping them develop and market in order to strengthen the loyalty of both customers, the merchant is very in favor of House card, they give it you, the shopping You might appreciate the convenience. Just as the bank's credit card limit, you are presented with the credit card line of your house is different depending on your creditworthiness. For this reason, you may choose to pay an invoice for your monthly credit card complete. However, the majority of House card is to charge a fixed interest rate of 18-22% annually, House card is expensive in terms of cost of bank interest rate than a credit card accordingly.
If you want to use them, with the cost of all types of credit cards. After learning about the different types of credit card, you can select the credit card that fits your personality and needs best. Be discarded, if you have a credit card number in your wallet, you may want to consider some.
You, if it is a type that does not already have a monthly balance, but can have a free annual fee credit card, you can see that there is a GRACE period for the purchase. If you do have a balance, it is to abolish the credit card you have the following worst is wise.
-High interest rates
Adverse-interest calculation. Interest can be calculated on the basis of the average daily balance of credit card balance is not the cause.
-Grace period. Several credit cards, even if you pay the balance of, you may be charged interest from the date of purchase until the date of payment.
Charge and trouble. Attempts to abolish the credit card has a fee of% of credit limit only the fee for do not have charge over the balance fees paid late, the limit, or the balance below a certain level.
Bank of the modern credit card, travel and entertainment credit card was introduced in the 1960s in the first Bank of America, both were introduced in the 1950s. In terms of features and benefits of May, I have changed much since then, the basic characteristics of each type of credit card will remain the same.
0 comments:
Post a Comment