As you receive advertising brochures, receive phone calls about credit card offers, you fall in a quandary as to how many kinds of credit card types there are. It is not only the different kinds but they too offer services and perks. For your part, it may be easier to decide if you know about each of the credit cards. What you should carefully study about the offers are the fees, interest and other charges. Some are not divulged and once you commit a transaction with an imposed charge, you will be surprised.
You should know the credit card types and the benefits they offer. As a starter, we discuss the four common types of credit cards prevailing in the United States. You will learn how great it would be to have credit cards. You purchase up to the limit of your card. This is a very useful accommodation if and only if you know how to handle purchases and payments correctly. By this, it is paramount that you pay your bills reflected in the billing statement on due date and for your purchases, ensure that you do not go over-the-limit. Failure to pay your credit card on time will be reflected in your credit rating report. The credit card is also a good way to build good credit history.
Here are four of the major credit cards that are commonly used by many Americans.
Major credit card types – Visacard and Mastercard
The most popular major credit card types are Visacard and Mastercard. Both are issued all over the world and are available from most companies and banks. The credit limits per card vary widely which in most cases depend on your credit score as well as your qualifications and financial position.
Your credit card allows you to make purchases charged to your card up to your limit. You can pay your balance in full or at least a minimum balance. You will receive your monthly billing and you will find in there the required minimum balance. However, if you just pay a minimum balance, the remaining amount will be charged with interest and will be reflected in your next monthly credit card statement.
American Express is another kind
American Express is another popular credit card, also used globally. Initially, this company was only offering charge cards which required full payment every month. Today, the company issues credit cards to people with good credit scores. With an American Express Blue credit card, you are allowed to pay your charged purchases as you would pay a normal Visacard or Mastercard. To cope up with competition with the other two more popular major credit card types, American Express offer lots of perks and other special privileges such as travel rewards.
Discover credit card
A fourth type of credit card that is widespread in the United States is Discover. This is not accepted in many countries such that it does not have global acceptance. However, Americans with outstanding credit records can apply and be awarded a Discover credit card. Discover market is extended to students through the US college credit card program. Because of the high starting credit line that Discover offers, it becomes competitive with Visa and Mastercard. Like the previously mentioned three credit card types, it also offers many amenities.
Rewards program include free airline tickets as well as hotel accommodations. The rewards of course are dependent on how much had been charged to your Discover credit card.
Credit card types are numerous and these four are only some of them. However, credit card users are more familiar with Visa and Mastercard.