Card Types Explained
world of the flexible friend has moved somewhat since the
days when choice essentially meant Access or Barclaycard.
do, of course, still offer a credit card facility but it
is available in either Visa or MasterCard, as are those
cards offered by seemingly countless other issuers. Today
one can choose between Capital One, MBNA, More Than, Mint,
Egg, Citi Finance, cards issued by various stores such as
Tesco and Sainsbury – and that is to name but a few.
is true to say that most credit cards operate on a similar
principle to one another, that being of course that you
buy now and pay later, along with a certain amount if interest
if full payment is not made within a certain number of days.
However, within those parameters there is sometimes a surprising
amount of difference as the various service providers compete
to offer you the best and most attractive deal. One incentive
that is often provided is an offer of 0% APR for a set period.
This gives the card user the freedom to use the card as
he or she sees fit safe in the knowledge that no interest
will be added provided full payment is made sometime within
the lifetime of the promotion period.
well as providing useful spending options these terms might
also tempt the holder of another, interest-bearing card
to transfer their deposit to the 0% card.
most issuers offer special deals on balance transfers at
different times. Thus if a card user is paying interest
at a certain APR they will, by transferring that balance
to another card with a balance transfer offer, be able to
pay the outstanding balance at a reduced rate of interest.
Many cardholders in fact minimise their repayments by moving
balances around between cards to take advantage of every
offer that comes their way.
separate approach entirely is the issuing of rewards or
points depending upon how often a cardholder uses their
card and how much indebtedness that person accrues. These
points can then be converted either into cash or into goods,
depending upon the offer at hand.
altogether different type of card is the credit repair card,
sometimes called a bad credit card. This card is available
to discharged bankrupts and others who have experienced
financial difficulty and is a useful means through which
they may begin to rebuild their creditworthiness in the
eyes of potential lenders. Sometimes these are prepaid so
that no credit is actually offered, but nonetheless they
do provide the cardholder with a means of demonstrating
some responsibility in the handling of a card.
then are the various credit card types explained. There
will of course be others, as issuers look for increasingly
original ways through which to provide incentives and to
give themselves a head start over their competitors. Compare
the leading credit card deals above and find your best credit
card deal online today.