A credit card is usually a plastic payment card issued to consumers to enable the consumer to pay to a retailer for goods and services according to the promise to the credit card issuer to repay them for the sums plus the other agreed fees. The primary way that consumers get credit cards is by signing up with a bank, as there are various types of credit cards that a consumer can apply for. However, there are also some other ways, apart from banks, to get credit cards. One way is to get them online, which will allow you to shop online, and also offers a variety of benefits.
In addition, the online availability of credit cards has an added advantage for consumers. This is because when you shop online, your purchases are covered by the financial institution’s ATM fees, if it is an approved one. The banks or other institutions offering credit cards do not normally cover the whole amount in one go. Instead, they give consumers a certain percentage, which covers the whole purchase amount, up to a pre-determined limit. You should read the terms and conditions associated with the offer before using it.
On the other hand, debit cards are very useful. They provide the holder with an option for making purchases without cash at the time of purchase. With a debit card, you only load the amount that you wish to spend on the debit card, which is then taken from your bank account when you come to make the purchase. This offers convenience for consumers as all their purchases can be made without any cash.
Although credit cards and debit cards have their own benefits, they are somewhat different from one another. While credit cards allow instant purchases, debit cards can only be used for cash purchases. Also, while credit cards are issued by financial institutions, debit cards can be issued by almost any merchant. Credit cards can also be used for online purchases, whereas debit cards can only be used at the specific retailer or website.
There are several types of credit cards, which offer different advantages to consumers. Some offer reward points, others offer incentives such as air miles. Some offer a zero percent APR for a specified period of time, while others give the consumer cash back. Thus, credit cards offer a choice of different benefits depending on the user’s needs. For example, credit cards offer higher cash back or rewards points for frequent, online and toll-free phone orders.
Credit cards also vary in terms of their APR, which stands for annual percentage rate. The APR comprises of a fee for every single purchase you make, even if it is just a monthly bill. The higher the credit limit, the higher your APR; so it is in your best interest to go for an APR that offers you enough cash to cover your expenses in a month without running short.
A credit card usually offers an incentive for its long-term use. These may come in the form of discounts or points that earn you bonus, or free air flights. Some cards also give you the option of making purchases online using your card. As you make your purchases, you have the option of transferring your balance to another introductory offer card. You then earn interest on your balance, which can save you hundreds of dollars every month.
If you already have a credit card and want to apply for another one, you should look at the interest rates offered by unsecured credit cards. Most credit cards come with variable interest rates, where your monthly payment may change depending on how the bank rates your current balance. This means that your interest rate may go up after a certain period of time, which may not be acceptable to you depending on your credit score. On the other hand, secured credit cards require a higher credit score or a co-signer before you can apply for one.