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Almost everyone over the age of 18 (or 21) has or wants a credit card these days and they are taken in almost every establishment. There are three main sorts of credit card common in America. The first major sort of credit card is travel and entertainment cards such as American Express or Diners Card. These have to be paid completely by the end of the month and are generous on spending limits.

The second major type of credit card is the bank card such as Visa, Master Cards, GM, and Ford cards distributed mainly by the banks. The bank defines the spending limit, which in bank parlance, is known as the credit line and each bank offers different terms and conditions. Banks offer a selection of payment methods: you may either pay the balance in full with no interest charges or pay the minimum or some part of the balance with an interest.

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 from gas companies, widely known as fuel cards, are only accepted in specific countries. They usually do not have annual fees. There is a wide disparity 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 set up in ways that work best for small business needs. To know what sort of credit card fits your requirements, you should review a few options.

How to Choose your Credit Card.

Credit cards have become a part of life for most people living in the western countries. It’s becoming increasingly impossible to avoid them, especially for business men. So, if this is the first time you are seeking to enter into the world of plastic money, here are some of the basic things you should look out for.

First, compare the interest charged by all the credit cards you are interested in. While the rate will not stay fixed for ever, it’s always better for novices to apply for the one charging the least interest.

Make sure you study the fine print carefully, especially regarding the other charges that may be made, like late-payment fees, annual fees, and whether there is a grace period.

Decide which 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 should compare the services and other features such as the cash back incentives, or warranties, rebates and such like and check whether the card is taken widely enough to suit your needs.

You should acquaint yourself with the following terms: 1] Annual Percentage Rate: this is the annual 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 commence charging you interest on your purchases. (Not all credit card issuers offer a grace period).