A credit card allows you to borrow money or buy different products on credit, which means you can buy now and pay later. Credit cards are very convenient for purchases and it is very safe to use a credit card. When you buy a credit card, you are given a credit limit. You can shop up to this limit. You’ll get a statement every month. You can pay the full balance or Minimum amount. Second, the balance will be charged interest.
Even if you opt for cash payment, credit cards are required in many cases, such as car rentals, a hotel room or travel reservations guarantee, or get a cash advance in case of an emergency. Credit cards are more comfortable and safer than carrying cash. If you are dissatisfied with a purchase made using a credit card, you may object to the charge until the issue is resolved.
Types Of Credit Cards
Many banks, credit unions, retail store chains and other businesses issue credit cards.
Such cards are issued by banks. Credit cards are Visa, MasterCard and Discover. Visa and MasterCard are the most accepted credit cards. Discover may not be accepted in some businesses.
Travel and leisure cards:
These are also credit cards issued by banks. The big ones are American Express (Amex for short) and Diners Club. These cards can provide you with travel-related benefits (baggage insurance, etc.) and incentives in some restaurants. They are not as widely accepted as Visa or MasterCard.
Among other special cards, American Express offers a regular card and Optima. If you have a Normal card, you are expected to pay the balance in full each month. With Optima, you can only pay the minimum amount. However, you can pay the full amount at Optima. Otherwise, you will have to pay interest on the balance.
Such cards are issued by a particular store or business entity and are only valid for purchases at that store, e.g. K-March, Sears, Macy’s, Hecht, JC Penny, Texaco, Chevron. However, some stores also issue Visa/MasterCard types, which can be used wherever Visa or Mastercard is accepted.
Cash back or incentives
Some credit cards provide cashback or other incentives. Many cards with such incentives usually come with an annual fee.
For example, Discover provides cash back of up to 1%. Chase Freedom provides 3% cash back on most purchases and 1% on other purchases.
The Sony card from Capital one accumulates one point for every dollar you spend. When you buy Sony items with a Sony card, you accumulate double points. When you have enough points, you can use them for a Sony item, such as electronics, games, or CDs.
Some credit cards, such as AAdvantage, accumulate a mile for every dollar you spend. When you have enough miles, you can get a free airfare. For example, 25,000 miles on a card would earn a return ticket anywhere in the continental United States.
Some cards may offer other benefits, such as travel insurance, lost luggage coverage, or rental car insurance.
Credit card selection
There are several types of credit cards available with many different banks, financial institutions and other businesses.
However, please note that credit cards are issued after checking your credit history. New arrivals to the US will not have a US credit history; therefore, getting credit cards at the outset can be very difficult.