Few details about Credit cards

The origin of the Credit card industry can be traced back to as far as 1914. The Credit cards have definitely come a long way since.
For many the Credit card has become a necessity - Be it paying for your lunch in a restaurant or buying clothes at a designer outlet or getting your hands on the latest gadgets, nothing compares to credit card when it comes to convenience.

A Credit card today provides you with not only shopping convenience and safety, but also offers you privileges like discount coupons, invitations to events, bonus points, cash-back and even a free insurance.

If you have one, great- find the next one that can address your needs better and if you haven't then what are you waiting for!

But how do you select the right credit card With so many variants available and numerous offers and promotions, choosing a card can be very difficult.
But mostly, it comes down to how you plan to use your Credit card.

For those who are new to the world of Credit card, let's find out some basics of a Credit card.
• When deciding on a card, always remember to get something that suits you best and fits well into your needs. The innovations are fast and coming and are never-ending.
• Do not rush. Look around and compare aspects like credit limit, grace period, renewal/annual fees, initial membership fee and other such services.
• Asking your friends about the cards they use might help too.

When you apply for a Credit card, the application you submit is carefully analyzed and the documents you provide are verified. Then a credit limit for your card is set for you, based on your net income, your credit history and other such factors.

Credit limit is the total amount that you may spend with your card while paying for services. Consider the lowest limit that would fit your needs, and not your lifestyle.

Most Credit cards offer a grace period of 15- 25 days before the interest is charged on the purchase. But some may not. So find one with the longest grace period. The longer, the better.
Most banks charge annual fee, renewal fee, membership fee etc. You should always ask for these to be waived off of. Also do read the terms and conditions carefully.

Do figure out the interest rate (APR) that you would be charged and try to get the card with the lowest possible rates. Most companies charge about 2% - 3% per month, which per year comes to around 35% - 45%.

You can either pay your bills by clearing all your dues as soon as you get your monthly billing statement or you could pay in monthly installments.Make sure you settle your bills on time and do not leave any outstanding balance (i.e. do not revolve on your card). You do not want to end up paying interest on your outstanding balance. Non-payment or default in repayment could also adversely affect your credit history.

If your credit history is good, you could request for an increment on your credit limits.
If there are cards you may not be using anymore, you might want to cancel them. If you have multiple cards from the same issuing bank, you could also ask for the credit limit to be consolidated into just one card.

Eventually, the decision to choose a Credit card is yours to make. Avail a card that fits your needs. And don't forget the interest rates, the grace period, the free offers, the discounts and the likes.

Here are few features that you should not miss.

Add-on Card
Add-on card is more of an additional Credit card that you apply in the name of your family members (father, mother, sister, brother, spouse, children), within the overall credit limit. Family members applying for Add-on cards have to be 18 years and above. All the payments for the services made from Add-on card(s) is done by you. Most banks allows for at least two Add-on cards.

Global Card
Global cards are accepted in over 200 countries. You can also use it as an ATM card.
It also gives you the flexibility of using your card instead of using cash or traveler's checks.
If you are a frequent traveler, abroad, then it is best to make your Credit card, Global.

Photo Card
If your card comes with your imprinted photo, then it is a Photo card. This type of card is considered safer as it is easier to identify the Credit card user. It also serves as your identity card.

Some safety measures to be taken
• Sign your card as soon as you receive it.
• You will also receive the PIN number after a few days. Keep your PIN/account number safe.
• Every time you use your card, be aware when your card is being swiped by the cashier so as to ensure no misuse of your card takes place.
• When making payment with your card, make sure you check if it is your credit card that the cashier has returned.
• Do not forget to verify your purchases with your billing statements.
• After using your card at an ATM, do not throw your receipt behind.
• Also do not discard your Credit card statements or receipt that has your PIN or account number. Shredding or burning them would be wise. Here are few features that you should not miss.
• Never give your Credit card information over the phone, unless you are really sure you can trust them. Same in the case while purchasing online.
• Save receipts of payments made through Credit card and check monthly statements and check for billing errors, if any.
• If your Credit card is damaged, destroy it and request for a duplicate card.
• Incase you lose your card, inform your Credit card company as soon as possible. Also make a police complaint.

Credit cards are for your convenience, so it is very wise to use them within your limits.

Credit cards can temp one into overspending, but if you manage it properly, it could turn out to be your best money lender.

Different Types Of Credit Cards

These days marketing ploys are resulting in an amazing bouquet of credit cards. From a simple form of plastic money, credit cards have metamorphosed into cards that give grocery discounts, clock travel miles, and add points to travel miles, offer online facilities, and more.

Before you apply for a card you need to know your needs and what is on offer in the market.

• Standard Credit Cards are the oldest kind and offered by banks and financial institutions. These are unsecured and can be: low interest cards, balance transfer credit cards, and reward program credit cards.

• Airline Mile Cards are frequent flier cards that offer airline mile credits whenever you use the card. Once sufficient points accrue you can convert the points into tickets.

• Cash back credit cards are unique and they offer you say 5% cash back on purchases. The higher your usage the more the rewards. Such cards charge an annual fee that can range from USD 50—USD 100.

• Reward Cards offer incentives where by you can adjust points against purchases or get gas rebates, discount booklets, tickets to movies at reduced rates and so on.

• Credit Repair Cards are for people with bad credit and who need debt consolidation or management. Such cards offer introductory APRs and help in rebuilding credit history.

• Secured credit cards are those that ask for a security deposit. These are issued against collaterals like a house, car, boat, securities, and jewelry and so on.

• Prepaid Credit Cards are a form of debt card. Where the amount is already in deposit with a bank. This protects against credit card debt.

• Specialty Credit Cards are for students, children, and business users.

• Business credit cards are regular cards but they keep business expenses separate from personal expenses, offer business rewards and savings, give expense management reports, offer cards to groups, employees, and give higher credit limits.

• Student Credit cards are simple and meant for use by students who have no credit history. They protect a student when he or she is away from home.

Before applying you need to read the terms and conditions offered and find out which institution will give you competitive terms.

Today one can apply for cards online and do comparisons before applying. Make a list of questions to ask before accepting a card. Think carefully do I really need one? What am I going to use it for? Remember card companies are run by masters in marketing and will bombard you with what seem to be “sops.” These are just lollies to tempt you to use their cards. You need to be clever and stay away from the traps they set.

Credit Cards are useful if used right. So study the world of credit cards before owning one.

Nothing is life is free is true with credit card companies too. They are in the business for profit and charge high rates of interest as well as fees. Always check the fine print and find out what the benefits and pitfalls of owning a card are.

Tips For Finding The Right Credit Card

Once you've made the decision to obtain a credit card you should take some time to decide which credit card is right for your needs. Believe it or not, not all cards are created equal and you must do your homework to discover all the details about each one.

A question you should be asking yourself before you decide to apply for a credit card is why you need one in the first place. Maybe you are looking for the benefits and ease that a credit card offers consumers. You might want a convenient way to track your spending and wish to reap the many rewards that credit card companies are offering their customers. Or you might already have a few credit cards and you are looking to decrease your interest rate and transfer your balances to one card.

Another point to consider is the amount of spending you will require on your credit card. If this is your first time applying for a credit card you may want to consider a smaller line of credit at first. It is a good idea to gauge your own habits before you become involved in a high limit credit card. The higher limit cards can get you into too much trouble too quickly. Or maybe you just want one in case of emergencies. We all have those times in our lives when the car breaks down and we don't have the money available for the repair right away. A credit card provides you a way to get your car repaired and pay it off at a later date when you are more able to pay.

Different cards offer different payment structures. You may be the kind of person who plans to pay off their card at the end of each month. You might want to look for a credit card that rewards this kind of behavior.

All of these considerations are important factors when considering which card to apply for. The obtaining of a credit card is a serious business and requires your careful thought and planning. Understand your habits and your ability to pay back your balances. When you are choosing a credit card you must know yourself and whether a high limit credit card is too much of a temptation for you. Choose wisely and take advantage of any special perks the credit card companies may be offering to get your business. It can be a sound financial decision.