Credit cards explained
Are you relatively new to the credit card world, and wondering
how they all work? There are many types of credit cards out
there. In addition to brand names such as Visa and Mastercard,
there are many different categories credit cards can fall into.
The first is 'secured' or 'unsecured'. Secured credit cards are
cards that are secured by putting a deposit in escrow between
you and the bank. If you stop paying on your card, they
repossess the deposit and so they don't have to try to get the
money out of you.
Unsecured cards are cards that the bank issues when they believe
they can trust you with credit without a deposit. These are
harder to get. There are also pre-paid credit cards, which
pretty much work as glorified gift cards that are accepted in
all the same places credit cards are. These can be given out as
gifts, company incentives, or purchased for yourself for uses
such as travel.
There are also business credit cards. These cards typically
offer incentives for company travel, office supplies, and the
like, so businesses will want to place expense accounts on their
cards. These can make life a lot easier for a small business
when they are trying to separate their accounts so that they can
accurately determine expenses.
Many small businesses use these types of credit cards to pay for
the costs of running the company then they can use the
statements for the end of year tax bill to relive tax bills.
With all these types of credit cards, it can be tough to make a
decision. But I'm sure after reading this article you have a bit
of a clearer idea on where to go when searching for credit
cards. Best of luck!
John Collins manages http://www.credit-guidance.info
Your source for credit card articles, tips, advice and related
news.