Credit Cards - Thursday, August 28, 2008 5:11 - 0 Comments

5 Reasons Why You Should Apply For A Credit Card

One great benefits of Credit cards is convenience. You do not need to carry any cash money with you ever again. Just take one card with you to the shop and use it to pay your bill. They are offered by many department stores, gas station, banks, grocery stores, and other companies. These are usually just for purchases made at that particular company, and there is almost always a limit on how much credit you can use. They are not always available to all those who maintain an account with the company.

Credit cards are for all intents and purposes, revolving credit loans. They are the most common form of "open ended" or revolving credit. Most people have at least one credit card, and often many more than one. They are a widely accepted form of payment, making them extremely convenient to use. They are accepted in face-to-face transactions, as well as with online transactions.

They are a great way for a company to offer payment flexibility to their customers. They are are small, convenient, and carry better protection. They are also convenient to use to buy things online, or to buy large dollar items. They are are convenient and easy to use. When something is too easy, there is tendency to abuse it. Credit cards are becoming more and more popular for the people who frequently travel abroad. They are more secure to carry than travellers cheques or cash.

Credit cards are slightly more reliable than debit cards because they can be used for over the counter cash advances at bank branches, whereas debit cards usually can only be used in ATMs. Over the counter cash advances often require additional identification (eg national ID card or passport) and frequently cost more than ATM withdrawals using the same plastic.

The two major types of debt on credit cards are debts from spending and debts shifted by balance transfer from another card. Credit card providers treat these debts very differently. When HELOCs are reported correctly, they aren’t factored into your credit utilization the way credit cards are. So, the reduction won’t hurt your credit score the way a reduced credit limit or closed credit card would.

There are also credit cards that cater specifically to the travel and entertainment industries. These include American Express, Diner’s Club and Carte Blanche.  These cards operate on a different system than ordinary retail store cards, or the national bank cards, both of which are revolving credit plans on which you pay a small amount each month, until your balance is all paid up.  The store or bank hopes you take a long time to pay, because they make their money on the 1 1/2% monthly (which is 18% yearly!) finance and, or interest charges. Your account may be canceled  if it is  60 days or more over due.  These cards do not charge interest, but instead charge membership fee.

To obtain American Express Card or Diner’s Club Card you must  meet their qualification criteria. They Will need to verify your salary or income. Most of them have cut-off points below which they will not grant their cards.  They will look at how long you have been at your current  Job as well how long you have lived at your current  address. Stability of your occupation-do people In your field get laid off quite often-are some of the criteria they use.

A credit card is different from a debit card in that it does not remove money from the user’s account after every transaction. In the case of credit cards, the issuer lends money to the consumer (or the user). A credit card is a system of payment. It is different from both a debit card and a charge card (though this name is sometimes used), which requires the balance to be paid in full each month