Credit Cards

Just by looking at the number of credit card offers that arrive in the mail each month, consumers can tell that there are plenty of credit cards to be had by the vast majority. Credit cards are available in an odd assortment that includes bonus gifts, gift certificates, cash incentives, frequent flyer miles, cash, and more.

Credit cards provide a source of identification and a convenient way to purchase  Read More...

Credit Cards

(Continued) items or services. Credit cards allow consumers to spend money they might not have with the promise that they will pay it back.

What kind of Credit Cards Are There?

There are three basic types of credit cards: bank cards, travel and entertainment cards, and store cards. Probably the best-known cards are the bank cards that include Visa, MasterCard, and Discover Card. Travel and entertainment cards include those offered by Diners Club, American Express, and others. Store cards refer to credit cards that are good only in a particular store or group of stores, such as Sears or Old Navy.

This thin piece of magical plastic that opens the doorway into a world of seemingly endless spending is offered by so many companies one would need a suitcase to carry them all. Yet they all come with different rules and regulations, interest rates, default clauses, universal default clauses, limitations, and incentives.

How Do I Get a Credit Card?

Consumers can apply online, by phone, or through the mail. Most cards require consumers to call and activate the card once they receive it in the mail.

If the consumer pays the balance in full each month for many of the cards, no charges will be assessed unless their payment is sent and received late or past the due date. Unfortunately, many consumers fall prey to the minimum payment due syndrome and carry a balance from month to month. That behavior ends up eating precious dollars through high interest fees.

Can I Get A Credit Card if I Have Bad Credit?

Consumers with a bad credit history, possibly due to previous poor judgment in financial matters, may have difficulty acquiring a credit card. Fortunately, a number of credit card providers offer credit cards to those with less than stellar credit histories.

Unfortunately, these credit cards generally come with a higher price tag. Typically, the interest rate is higher, the annual fee may be higher, and the late fees may be higher. Moreover, many of these cards come with smaller available balances and larger over the limit fees. Unfortunately, consumers who have bad credit ratings have little choice when it comes to securing credit cards. In fact, the only choice they really have is to shop around and look for the best deal out of the available selection.

When consumers with bad credit are choosing a credit card, it is especially important to check the terms offered including the default clause, universal default clause, periodic or interest rate for the finance charge, grace period, annual fee, cash advance fees, and late charges. Acquiring a credit card and using it wisely can be the first step to a long walk back to a good credit history.

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