Credit Card Types

Are all credit cards created equal? Find out the different types of credit cards available before you check out the deals offered by various banks and merchants. It is then easier to choose 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. 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 some time. Due to the different schemes available, some people may use the terms interchangeably, but these two are basically different.

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. Based on your income level, the banks will decide the spending limit you are entitled to. Different terms and conditions apply to different types of cards. It is up to you to decide whether to pay the full amount each month, or just pay the minimum amount the bank has asked for, but you have to pay hefty interest charges on the money you rollover. 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. For those with small businesess, they may apply for business credit cards, even though these cards are not exclusive to them. 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.

Finally, we have retail store cards from big companies. Such cards are issued by shopping malls and other retail stores, or we have fleet cards, for various fuel purchases as well. Due to the numerous retail store cards, the terms and conditions are quite different. These cards are usually only accepted in specific countries.

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.