To find and compare the best credit card offers please visit www.CreditResourceUSA.com

1. ==== ====
To Compare Credit Card Offers and Find the Card That's Right For You, please visit:
www.CreditResourceUSA.com
==== ====
It may seem incredible, but credit card issuers clog the mails with over 2.5 billion offers inviting
people to apply for a credit card. Even those who would not qualify for a conventional credit card
due to serious credit problems are now able to get one; some credit card issuers even specialize
in this particular type of market. And according to financial gurus, there are at least a billion credit
cards in active circulation throughout the United States alone.
Credit has been an economic cornerstone for some time now. Surveys show that the average
American household is estimated to have at least twelve credit cards, including charge cards.
While you may tend to think that one credit card is pretty much the same as the next, there are in
actual fact distinct characteristics for each different credit card type. It is good to know these
difference between the three different types of cards in the market: a bank credit card, a travel
credit card, an entertainment credit card (although nowadays the combined travel and
entertainment card has become more common) and a retail credit card or house card.
Bank Credit Cards
You have probably noticed that most credit cards bear either the logo of Visa or MasterCard
together with the name of the bank. It would appear that the credit card has been issued by either
Visa or MasterCard. That is not quite an accurate assumption: these two companies do not issue
credit cards directly to the consumers. Most of the credit cards on the market today are offered by
thousands of banks around the globe. Each bank is linked to the credit card association, because
are not allowed to issue any kind of card unless they are association members.
Visa is a privately held membership association, although it is preparing to go public. It started as
an association of banks in California and the West Coast. There are over 20,000 financial
institutions in the membership rolls, and virtually all of them offer Visa Card. MasterCard is also a
membership association, similar to Visa, and originally consisted of member banks in the East.
A bank credit card is in reality a revolving credit line. When you receive your statement, you can
pay all or part of your balance each month, run up the balance again and so on. Being a credit
line, the account comes with a pre-determined credit limit that depends on key factors like
disposable income, credit history, etc. The credit limit can be as low as a $100 or as high as many
thousands of dollars.
It is possible for card holders to get themselves into trouble when they do not properly manage the
revolving credit line. When you carry a balance instead of paying it off, the credit card issuer starts
charging interest on that balance -- in some cases, this interest could be pretty steep. The interest
rate varies widely, depending on who issued the card, but you could expect the average credit
card interest rate to be at about 18 percent.

2. For instance, if you carry forward a $1,000 balance for 12 months, you pay $180 in interest per
year or $15 every month. If you maintain a $1,000 savings account, you will earn about $40 in
interest per year. Those who get into trouble will have to reduce debt, and one of the more
common ways to go about this, is to arrange for credit card debt consolidation, which helps lighten
the interest burden.
Travel and Entertainment Card
Travel and entertainment cards are similar to bank credit cards in the sense that holders can
charge purchases at various stores and locations. However, they are also different from bank
credit cards because they are offered directly by the credit card companies, namely, American
Express and Diners Club.
This credit card type was once accepted primarily at travel- and entertainment-related businesses
such as airlines, hotels, restaurants and car rentals. Nowadays, all other establishments, such as
upscale department stores, gas stations and drugstores, accept them. Like any bank card, the
typical travel and entertainment card of today offers the menu of features that most credit card
holders have come to expect, such as frequent flyer miles, luggage insurance and collision
insurance coverage on rented cars.
A further difference between travel and entertainment cards, and bank cards, is that travel
entertainment cards do not carry an extended line of credit. This means that you will are required
to pay your outstanding balances in full, either within one or two billing periods, in order to for the
account to stay current.
Both travel and entertainment credit card providers, such as American Express and Diners Club,
also deliver categorized summaries of expenses charged to the credit cards at the end of each
year. This certainly is a convenience at tax time.
House Card
Unlike a bank credit card, and a travel and entertainment card, which you can use in many
purchase locations, a house card is accepted only at a particular store or stores within the same
chain. House cards (also referred to as retail charge cards) are the second largest category of
credit cards; major house issuers include department stores, oil and gasoline companies, and
telephone companies. Discover Card, once owned by Sears, was probably the biggest house card
until it was purchased by a financial institution to become a distinct credit card company.
Merchants are very much in favor of house cards as these cards are valuable in helping them to
both develop customer loyalty and enhance sales; you may appreciate the shopping convenience
they give you. Just like bank credit cards, house cards give you a line of credit, with a limit that
varies depending on your creditworthiness. For this reason, you may choose not to pay your credit
card bill in full each month. Note, however, that the majority of house cards charge fixed interest
rates of between 18 and 22 percent annually; thus a house card is more expensive in terms of
interest cost than a bank credit card.
All types of credit cards involve costs when you use them. After knowing the different credit card

3. types, you may choose the credit card that best fits your personality and needs. If you have a
number of credit cards on your wallet, you may also consider discarding some.
If you are the type who does not carry a monthly balance, you can have a credit card with no
annual fee but make sure that there is a grace period on purchases. However, if you do carry a
balance, it is wise to do away with a credit card that has the worst of the following:
·High interest rates
·Unfavorable interest calculations. A credit card may calculate interest charges based on
average daily balance, not on the balance due.
·No grace period. Some credit cards might charge interest from the date of purchase until
payment date, even if you pay off your balance.
·Nuisance fees. Try to do away with credit cards that have late-payment fees, over-limit
fees, fees for not carrying a balance or only a balance below a certain level, or a percentage fee
on your credit limit.
The modern bank credit card was first introduced in the 1960s by the Bank of America; the travel
and entertainment credit cards were both introduced in the 1950s. Much may changed since then
in terms of features and benefits, but the basic characteristics of each type of credit card have
remained the same.
Richard Gilliland Provides Expert opinions and reviews to help you apply and choose the right
credit cards.
Article Source:
http://EzineArticles.com/?expert=Richard_Gilliland
==== ====
To Compare Credit Card Offers and Find the Card That's Right For You, please visit:
www.CreditResourceUSA.com
==== ====