Credit card is a card that used to purchase something until it reach the maximum limits provided by its provider. Usually A provider offer a payment methods to its customer then a customer pay the bills in installment and interest. The longer installment made up the higher interest will come. Credit card can be very convenient compared to cash or checks during transaction.
It is very important to know the type of credit card, and there is two options interest, fixed & variable interest. Fixed rate can cause a higher interest. There is 3 type of credit card account which is made by provider, it is made with a basic agreement include revolving agreement, charge agreement & installment agreement. Revolving agreement is an agreement that allow customer to make a full payment in a time or to choose partial payment base on their capability to pay. Charge agreement is an agreement that require a customer to pay full payment to avoid interest charge. The installment agreement require customer to sign a contract to pay billing in a several period of time & amount as agreed by its provider and customer.
There are a few type of credit card and there are many famous credit card such as Manhattan bank, Citibank, Bank of America, HSBC, American Express and many others credit card name. 3 type of credit card that is common use in America for example travel & entertainment card such as American express & Dinner cards. This need to be made in a full payment methods at the end of every month and it can be use freely without restriction limit.
Another type of credit card issued by a bank provider such as mastercards, visa, GM & Ford cards. Bank provider imposing fund limitation when use a credit card and they have their own term & condition. They also offering a payment methods option, full payment without interest and minimum payment with interest. Another type of credit card issued by a retail store such as Sears, J.C Penney, Shell and Mobile.
How to make a credit card
There is a few things that you need to do when you decided to apply for a credit card, you need to find a reference through the internet, do a small research related to credit cards and by doing this you will understand the type of credit card and requirement upon applying a new credit card. Having a credit/loan with interest is quite easy but we have to be wise when using it.
A few things you need to be familiar with including annual fee, percentage rate of APR (Annual percentage rate). Another thing you need to understand is about total billing for your credit cards, finance charge, grace period or known as free period, transaction fees and another fees which applied by the provider. We need to know the calculation of monthly billing, know print date to count daily interest, adjusted balance, previous balance and two cycle balance. To Apply for a credit card you need to fill out an application by visiting a bank representative or through online application.
Tips for using credit cards.
A simple tips to use a credit card is to plan everything you want to buy, make a list of your needs and do not pay your bill in minimum payment because it will make you pay a higher interest in the end. On time payment is always better. And for those who need an urgent requirement, credit card is really helpful. It will be wise if you only use your 30% limit only since the more you use your credit card limits it will effect your financial level. And do not use your credit card to buy a household equipment.
If you found a difficulties when paying your monthly bills, you can discuss with a bank provider and asking a remission by rescheduling your due date payment. Late payment will influence your credit history, and it will lead you to be rejected when applying a new one.