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Know What Type of Card to Use |
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Written by CreditCardsClub
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Time was when getting a credit card was easy if you have the proper credit history to back your application approval. You only need to choose between Diners Club, MasterCard, VISA and AMEX cards. VISA and MasterCard cater to a larger market base that allows cardholders to make partial payments on their purchases. The other two are more charge cards (though they have evolved to credit cards) reserved to those who prefer paying their last month’s purchases in full and are often considered more prestigious to own.
These days the emergence and maturity of the cashless commercial world have created the preference towards plastic cards as the main mode of payment. Card companies and banks have started to offer credit and debit cards to a wider market that they didn’t have to in the past.
Debit or Prepaid Cards
You really have no choice but to accept the activation fees and transaction fees that go with using debit cards if you don’t have the credit rating needed to have a credit card or a checking account. Most debit card owners are students and the youth markets that need plastic cards to pay in retail outlets but have no credit history to quality for credit cards. The rest belong in the lower income groups who have botched their credit histories and could not qualify as well.
Debit cards will never put you into debt because you use the card as your deposit will allow. Unfortunately, these cards have no impact on your credit history whatsoever.
Credit and Charge Cards
It’s a no brainer to have them if you belong in the middle or upper class of society that demands cashless transactions with increasing prevalence. There are quite a number of credit card companies that offer the basic convenience of credit cards plus a few incentives for the right market segments. And some thinking may be needed if you plan to have your first credit card and qualify for one. The first thing to consider is how you plan to use the card.
If you have a large disposable income and can afford paying the full amount of your purchases, a charge card like Diners Club or AMEX is a good choice. No need to worry about finance charges but the cardholder can enjoy many of the perks offered by charge cards.
Airline or Traveler Credit Cards
For frequent travelers, an airline credit card co-branded with the major card brands can be a good choice especially when your purchases get mileage credits towards a free airline ticket or hotel accommodation.
Low Interest Credit Cards
If you are the type who like to make cash advances, do balance transfers or pay only the minimum monthly dues and leave balances in your account, check out the Annual Percentage Rates or APRs of various credit cards and you will note differences between them. The lower the interest rate is the better. Many new entrants in the credit card business do offer APRs that are lower than what established card brands offer. And most of them advertise introductory APRs that can benefit cardholders who prefer to pay minimum dues. Student credit cards are one of these. |
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Last Updated ( Friday, 08 February 2008 )
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Written by CreditCardsClub
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At times we are in urgent need of money and don’t know where to get it from this is one time you regret not having a credit card. We all know that banks do make profits out of the credit cards provided and we don’t really want to pay high rate of interests on the same but unfortunately at the end we have to pay them. Now the reason many don’t take or apply for a credit card is the strange feeling of not able to pay it back. However if one chooses a right type of a card for his/ her needs then probably there is no strange feeling and no worries that one will have when one uses a credit card. For example if a student who just passed out of college has a very good credit limit applies for a Air Travel Credit Card he might get the same but then may later turn useless to him since the points earned on the credit card shall only be redeemed on a Air Line Ticket and nothing else now, if the student does not travel a lot the points earned by him shall be a waste and only once in a life time will the student be able to use the tickets for his travel. Also the student shall bear the extra annual fee charged on the card.
To avoid such problems the best thing is to choose the right credit card, but how shall one choose the card is the main question. Always remember that the financial institution that you walk up for applying a credit card does not have only one type of a credit card they have many different type of credit cards though it may take a bit longer for you to decide whether or not the card is suitable for you it is always better to consult an credit card advisor to decide the card that you wish to take and this shall help you to decide things faster as well with the correct choice of the card. The credit card advisor shall be the best person to give various types of choices and also advise you the type of card that you must apply for. This shall also help you to get the right card as well as the credit history that you may have will be considered for the card advised. The credit history as we all know carries high value today and the advisor checks all this before advising you to apply for a particular card. The credit card advisor knows which will be the best card to suit your needs and also will be easily given to you by the financial institution based on the credit history. You must also remember to read all the terms and conditions that the financial institution has before you sign up for the credit card as this helps you understand if you shall be able to bear the extra interest charges and also if you can benefit with the points earned by the card. All this helps you to choose a perfect credit card to suit your needs. |
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Last Updated ( Friday, 08 February 2008 )
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How to choose a Credit Card |
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Written by CreditCardsClub
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A credit card is a very essential part of ones life in today’s world. With a credit card one may be able to satisfy all the needs with the advantage of getting all that one wants and also get to pay the price for the same later. All banks today offer credit cards with various services and many take these advantages but the main question is which a good credit card is? A credit card which would give a good credit limit or a credit card which does not have any annual charges, a credit card which does not have any extra charges that one may have to bear, a credit card that gives more redeemable points, or a zero percent interest credit card wherein there ins no interest charged to the customer for the first six or twelve months.
The answer to this is that one may choose any of the credit cards as they all have the same type of use; all of them can be used anywhere but with only some extra priorities. But which credit card to choose totally depends on the card receiver. If a person is a sports fan then probably the person will appreciate a sports credit card but if the same person is also a businessman who has to travel a lot for work then even a air travel credit card will help him.
Now if the person has a liking towards sports more than the business then probably he would choose to go for a sports credit card but if he thinks from a businessman point of view then he may go for the air travel credit card or may even land up applying for both the credit cards. The usage of the credit card on both the cards shall be the same however the person may get sports goodies when he opts to take the sports card and may get free air miles when the points are redeemed and his traveling will be for free. So, choosing a type of credit card is totally depended on your need however if you are confused then you may always visit the bank for better advice or use the internet to compare two different types of cards so that you may know which card suits your needs to the fullest.
Always keep in mind to read the terms and conditions of the credit card providing institution as many a times there are some hidden costs which are not noticed by the customer and later has to bear the cost for unnecessary charges like late payment charges, annual credit card charges, etc. A credit card advisors’ help is a preferred option all over the world as they understand your needs and help you decide for the card. Hence choosing a credit card is nothing difficult if you know your needs. Reach out for the market and find out all the details about all the various credit cards and then set your needs and it will be very easy for you to choose from the wide range. |
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Last Updated ( Friday, 08 February 2008 )
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