Types Of Credit Cards

Sep 12, 2008 Credit Advice

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

If you need to entertain your guests or travel 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. They offer short term loans without penalties if you pay off in full every month. American Express and Diners Cards are such travel and entertainment cards. American Express has other payments options available for you to make your payments over some time. There are many schemes available, so a charge card user may have overlapping benefits that credit card users have, so some people may think the two different types of cards are the same.

Many of us are extremely familar with credit cards, the second type of major cards available in the market. The main credit card companies are Visa and Master Cards, and they work together with banks to issue the 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. 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. 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 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. Such cards may have higher spending limits while charging lower interest rates. Cash flow issues can be easily resolved for small business with business credit cards as you can pay the bills over an extended period.

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

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 are suitable for you.

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