Credit Card Types

Posted by admin on October 1st, 2008 at 07:33pm

Are all the credit cards the same? Before you compare the various credit cards offered by different merchants and banks, it is good to know a few main types of credit cards. This will assist you in deciding which credit card suits you better.

Those who need to entertain clients or travel on short notices may require more funds and it is difficult if you have a fixed spending limit. Without spending limits, charge cards will be suitable for those who need to spend a lot of money on entertaining their clients. 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 a longer period of time. Some people may use the terms ‘charge cards’ and ‘credit cards’ loosely, but there are differences to the two.

The second type of major cards is the credit card we are familiar with. 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 cards have different terms and conditions. You can choose to pay in full each month, or pay the minimum amount stated and incur interest rates on your existing payments on top of new payments. This may add up to quite a large sum due to the high interest rates as these are unsecured loans.

Business Credit Cards are another 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. These will help small businesses with cash flow problems as payments could be extended.

Last but not least, various big companies offer retail store cards. 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. Only certain countries accept such cards.

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

Tags: business credit card, charge card, credit card, fleet card

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