Companies who are used to credit card will not be surprised by all of the different types of credit cards available. Those who are new to the credit card scene may be taken aback by all of the various types of plastic that can be carried. There are multiple types of cards in the financial world that can be processed and run the same. Understanding all of the different types of credit cards possible will help you to understand what to expect. If you are looking for your own debit-credit card, it will help you to understand what card may be best for your own credit needs then you have some different types of debit-credit cards in the financial world.
Pay as you Go Cards Pay as you go credit cards are the most efficient and responsible credit cards available. These ones force you to pay every single month, but actually pay your entire balance. You must pay everything you owe every single month. If not, you run the risk of incredibly high interest rates that make the card difficult to pay off.
Balance Cards The most popular and most used type of credit card is the standard, regular balance card. You put a balance on the card and only need to make monthly payments that are based on your balance. This allows you to spend a lot of money with only minimal monthly payments. Whatever you purchase will cost you more in the long run, but balance cards give you more finances than you actually have.
Debit Cards Nearly every bank in the United States uses a debit card for their customers. Debit cards allow you to spend the money that you have, but do so with plastic. You need to know your finances and be careful when purchasing items with a debit card. If you spend more than you have, you will be charged with an "overage" charge.
Rewards Cards Rewards cards are the same as any other type of credit card. They have multiple benefits for those who make purchases, however. Some give cash back after a certain amount of purchases. Others rack up points that allow you to purchase airline tickets.
Company Specific Cards Many different companies offer credit cards. Retail stores will often feature their own line of credit to encourage you to purchase more in their store. Often, these have higher interest rates and are harder to control.
Some people need the responsibility of pay as you go cards to ensure that they do not rack up a large amount of credit. Others need the continuing balance of a standard, balance card. Those who do not need credit but want to have plastic will turn to their debit card. There are also specialty forms of credit cards, such as rewards cards and company specific cards, that act just like standard credit cards. Understand all of these types of credit cards to know what to expect, and to know what may be perfect for you.
Author Resource:
Global Financial institution offering commercial and personal banking services including online banking, credit card, loans, Bahamas money management and more. Visit finance Jamaica .
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