What Exactly Is A Credit Card?

A card with a certain limit of credit on it that allows people to buy things without cash is known as a credit card. An individual can make purchases in store or at a restaurant and the sales clerk uses the credit card to pay for the items by swiping it in their credit card machine or by manually entering the credit card number. The credit card holder pays the credit card company on a later date. The credit card holder can also get a cash advance off of there credit card if the credit card issuer permits this type of activity. Individuals who get a credit card must be aware of the debt accumulation and the interest rates as well. A credit card is not the same thing as a store charge card. The concept of the credit card was first heard of in 1887 by a gentleman named Edward Bellamy in a novel that he wrote called Looking Backward.

The Different Types Of Credit Cards

There are currently five different types of credit cards that are offered and they are secured credit cards, business credit cards, digital credit cards, unsecured credit cards and prepaid credit cards. A business credit card can only be used for business purposes and these types of credit cards are usually registered under a business name. The use of business credit cards has grown in recent years and a lot of small businesses are using business credit cards. In a study it showed that 37% of small business owners were using business credit cards in 1998. Another study was conducted in 2009 and the use of business credit cards for small businesses doubled to 64%. There are benefits that a business receives for using a business credit card. The business usually receives special offers on The next type of credit card that is usually used by the general public is a secured credit card. This type of credit card is usually used by consumers to help to rebuild or establish good credit. With a secured credit card the person usually has to put down between 100% to 200% of the credit limit that they are requesting. So if a person puts $1,000 down their credit limit will be between 500 and $1,000. The next type of credit card is a prepaid credit card and this credit card really isn't a true credit card that is issued by a bank. The prepaid credit card has money put on the card by the consumer because they need to make some type of purchase where a credit card is needed and the individual does not have an official credit card. You can purchase a prepaid credit card in many different brands such as Visa, Discover, and MasterCard. A digital credit card is a cloud-hosted virtual credit card and an example of this is when individuals are able to pay for items using a credit card that is downloaded from an app to a smartphone. This type of credit card is really becoming popular with the advancement of technology. The most commonly used type of credit card is an unsecured credit card. This is a credit card where no type of collateral is needed. Because this credit card is not connected to any collateral the lender is able to seize the credit card if payment is not received. Individuals usually are approved for an unsecured credit card because they have consistent employment and a decent credit score.

What Are Some Of The Best Credit Cards Available Today?

When choosing a credit card individuals should always be aware of the interest rates and try to choose the credit card that has the lowest interest rate. Another thing that the credit card holder should take into consideration when choosing a credit card company is what type of rewards are they offering. If you are a credit card holder and you traveled a lot you may want frequent flyer rewards or travel rewards.If you are an individual who shops a lot with your credit cards you may choose to get the cash back rewards. Listed here are a few of the most popular credit cards available number one the Chase Sapphire card this particular card is recommended for first time credit card holders. The platinum card from American Express is a very good card and this particular card is known to have some of the best perks and Rewards. The third most popular credit card is the Citi rewards card and this particular card offers a 60000 bonus points if you sign up with their company. These are just a few of the major credit cards out there but there are many more that have good deals or rewards for just like the ones listed here.