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Almost everyone over the age of consent has or wants a credit card these days and they are accepted in almost every establishment. There are three main sorts of credit card common in America. The first major type of credit card is travel and entertainment cards such as American Express or Diners Card. These have to be repaid completely by the end of the month and are generous on spending limits.

The second major sort of credit card is the bank card such as Visa, Master Cards, GM, and Ford cards sponsored mainly by the banks. The bank defines the spending limit, which in bank speak, is known as the credit line and each bank offers different terms and conditions. Banks offer a selection of payment means: you may either repay the balance in full with no interest charges or pay the minimum (or some part of the balance) with a finance charge.

The other major sort of card is the retail store card, such as Sears, J.C. Penney, Shell or Mobil. These store cards and those issued by gas companies, which are usually known as fuel cards, are only accepted in specific countries. They hardly ever carry annual charges. There is a large variance in the terms and conditions for these cards.

Different kinds of credit cards offer different options. Some are geared toward individual consumers, while others are designed in ways that work best for small business needs. To know what sort of credit card fits your needs, you should look over a few options.

How to Select your Credit Card.

Credit cards have become a part of everyday living for most people who live in the west. It’s becoming increasingly impossible to avoid them, especially for business men. So, if it is the first time you are about to enter into the realm of credit cards, here are some of the basics you ought to look out for.

First, compare the interest chargeable by all the credit cards for which you are eligible. While the rate may not remain fixed for ever, it’s always advisable for first timers to go for the one charging the lowest rates.

Make sure you study the small print carefully, especially regarding the other charges that can be applied, like late-payment fees, annual fees, and whether there is a grace period, which is normally given before the finance charges are applied.

Decide what spending limit is most suitable for a person of your income. Furthermore, the fewer credit cards you have, the better placed you will be to understand your spending pattern.

You ought to compare the features such as the cash back incentives, guarantees, rebates and such like and check whether the card is accepted broadly enough to fit in with your requirements.

You will help yourself by acquainting yourself with the following terms: 1] Annual Percentage Rate: this is the yearly cost of the credit. 2] Finance Charges: these are the total charges of the transaction. 3] Period of Grace: This is the length of time the card issuer gives you before they begin charging you interest on new purchases. (NB: not all credit card issuers allow a grace period).