Credit cards have become ubiquitous in our lives. When I was younger, most parents carried cash in their pockets. Now people carry credit cards as they avoid having to go to the bank. This can be a bad thing as some people forget that sooner or later credit card bills must be paid off.
There are three basic types of credit cards that are common in the United States. These are travel and entertainment cards such as American Express or Diners Card. Cards such as these generally must be paid in full at the end of the month. They are also very liberal on spending limits as, in many cases, these cards are used for business expenses that are paid through a business.
The second major classification of cards are the bank cards such as Master Card, Visa, Ford and GM cards which are sponsored primarily by the banks. The bank set the spending limits, which in the banking business is known as lines of credit. Each credit lineh offers different terms and conditions. Banks also offer a choice of payment methods. The owner of the card can either pay the balance in full with no interest or pay a minimum part or some part of the balance which will incur a finance charge.
The other major type of card is the retail store cards such as J.C. Penney, Sears, Mobil or Shell Oil. These cards, also known in as fuel cards in some countries (since in may cases these are sponsored by the oil companies) are only accepted in specific businesses and usually do not have annual fees. For example, Sears cards are only accepted at a Sears store. There is a wide disparity between these cards in the terms and conditions. Some are geared more to driving business to their stores and other are centered around collecting finance charges from the card holders.
Different types of credit cards can offer several different options and can be chosen to fit almot any particular need. Some are geared toward the individual consumer and, in fact, has resulted in the creation of affinity cards in which the particular sports team or hobby chosen by the card holder is displayed on the card itself. Other cards are set up in ways that work best for small business needs, and, in many cases, provide a method for businesses to garner short term cash advances for buniness purposes.. Anyone who is looking to get a new credit card should weigh the different options and choose the card that best fits their requirements.
One of the easiest credit card pitfalls to unwillingly (and unknowingly) trip into is the habit of spending into your credit, and using your whole paycheck to completely pay off your balance.
If you’ve found yourself in financial trouble and want to eliminate credit card debt from your life, you need to first commit yourself to reducing your credit card debt. You basically need to dedicate your life to it.
Credit card fraud soars by 14% as criminals find ways to hack ’secure’ Credit and debit card fraud increased by 14 per cent during 2008 as criminals found ways of bypassing the chip and pin system.
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