Are all credit cards created equal? Before you compare the various credit cards offered by various merchants and banks, you need to know a few main types of credit cards. It is then easier to select a suitable credit card.
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. Charge cards will be of good use to you as they do not have credit limits for your spending. If you make the payments in full every month, you do not have to pay any charges on the short term loans. 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. Some people may use the terms ‘charge cards’ and ‘credit cards’ loosely, but there are differences to the two.
Many of us are extremely familar with credit cards, the second type of major cards available in the market. 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. If you only pay the minimum amount for your credit card payment, be prepared to fork out hefty sums that stemmed from your interest payments and new purchases. 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. These cards tend to have lower interest rates and higher spending limits. 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 major 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. These cards are usually only accepted in specific countries.
Since different types of credit cards offer different conditions and payment options, you can choose what cards such as charge cards, credit cards, business credit cards and retail store cards suit you best.
Tags: business credit card, charge card, credit card, fleet card