Before applying for credit it is important to understand the terms of service before you begin comparing the various plans so that you can accurately evaluate each offer. Below is a list of terms along with their definitions.
This allows a person to move credit card balances from a card with a higher interest rate to a card with a lower interest rate. It is possible to save the difference between the two rates, There is also the possibility of saving even more money by taking advantage of any introductory period that may apply.
These cards entitle business owners and executives to have a rather high limit, and other benefits.
Car and Gas Cards
Some credit card issuers have joined with car manufacturers and gas retailers to provide additional incentives to encourage customer loyalty. These cards can offer some of the best rewards.
Cash Back Cards
These cards offer to return a percentage of the annual amount spent to the credit card holder. The more you charge the more you cash back you earn.
Easy Approval Cards
These cards are for consumers who may have less than perfect credit. Because the institutions that issue these cards have a more lenient approval process it is easier to get a card, but the interest rate is often higher.
Flyer Miles Cards
This is another type of reward card that offers points for each purchase made with the card. The points can be exchanged for airline tickets or upgrades.
Instant Approval Cards
Some card issuers offer online applications that make a determination almost immediately.
Low Into Rate
A card with a low introductory rate often gives you a zero percent interest rate for a specified period of time, usually 6 to 12 months, after which the rate will rise to the average rate. This low rate usually applies to balance transfers or new purchases, sometimes both. If you carry a large balance on your cards from month to month or think you will be making a large purchase soon, this could be a good card for you.
Prepaid Debit Card
These cards are actually not a credit card. Technically they are a type of debit card since no credit is issued. It works like any other debit card giving you a spending limit equal to the amount of money you have put on deposit with the card. These cards are usually accepted wherever debit and credit cards are accepted.
Any type of card can yield rewards from points that can be used toward anything from airfare to zoo admission. Sometimes the reward is cash back, hotel or gas discounts.
Student credit cards are a good way for students to learn responsible spending with a credit card that is easy to obtain for student who have little to no credit history.
Remember, you are the consumer. If you are credit worthy you are doing a favor by giving your business to a particular credit card issuer. You are the customer. Be sure that you understand exactly what the terms of service are. If the printed material is not clear enough, call and get clarification. If the company is reluctant to take the time to explain the cards, features, benefits, and obligations in a clear and respectful way, then you may want to look for another provider.
If your credit is less than perfect, you face additional challenges in getting credit, and the additional risk of being taken advantage of. Carefully read all materials sent to you as the printed information is what will be enforced in a court of law regardless what you are told by a telemarketer or other sales person.
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