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Cards |
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A card
that could be used repeatedly to borrow money or buy any
products and services on credit is known as credit card.
Banks,
savings and loans, retail stores and other businesses issue
credit cards. It is a convenient tool for purchases. When
you purchase a product or service on credit you need to
payback the amount to your bank. If you do not pay the balance
full, then you would need to pay with an interest.
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Types of Credit Cards
- Bank
Cards - These cards are issued
by banks. Most prominent cards in this category are Visa, MasterCard
and Discover.
- Travel
and Entertainment Cards - The most prominent cards in this
category are American Express and Diners. These cards were originally
aimed at upscale market. They are accepted by merchants though
not as popular as Visa or MasterCard.
- House
Cards - These cards are issued by major chain stores and
hold good only in them. Sears is the largest credit card issuer
in this category. Oil companies, phone companies and local departmental
stores also issue house cards.
Interest
Rates
The amount of interest the credit card company charges
you on the amount you owe on your card is interest rate. No interest
rate is charged if you pay complete balance regularly every month.
If you don't pay the full balance and some amount is due, you
would require to pay an interest. The interest rates depend upon
the bank that issued the card.
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