Posts Tagged ‘Affinity Cards’
The types of credit cards
Debit Cards
A debit card is not exactly a credit card. When your debit card is exchanged, it checks your account whether or not it has sufficient funds to complete the transaction. If yes, then the money is deducted from your account. Although a debit card does not give you the option of paying later, but it allows you to shop without carrying hard cash. In addition, you can use this card at ATMs as well.
Payment cards
Payment cards in the category of credit cards, but the only difference is that you must clear the full balance at the end of each month. Since it does not allow you to see your balance, it gives you very high spending limit or perhaps no limit at all.
Store Cards
These cards are issued by supermarkets and malls to use their premises. You get bonuses like discounts and points that can be used later.
Affinity Cards
These cards are offered by banks in association with airlines, car manufacturers, and hotels. The use of these cards make you fly miles and points that can be stored and exchanged later.
Unsecured credit cards / revolving Cards
These cards allow you to pay a minimum rate of 2 to 4% and defer the balance next month. If you clear the entire balance and you later do some shopping, you will not have to pay interest on those purchases until the next billing cycle begins. This period is called non-interest grace period. If you have a balance due, then all subsequent purchases attract interest rates by the APR (annual rate).
Secured Credit Card
This card asks you to have a savings account with specific balance in it. This serves as collateral in case of default. This is a good way to repair bad credit reports. Make sure that the issuer reports to credit bureaus and do not mention the aspect secure. The costs associated should also be considered.
Consolidate Credit Card
If you have more than one credit card balance, you can combine them into a single consolidated credit card. The card provider is paying all outstanding balances on previous maps, and royalty fees and interest to do so. These balances are then moved to the new card statements. This is called the balance transfer credit card.