Credit cards may all just look physically alike: the same plastic make, same size, length, width. However, they also have their differences. It is not just with their designs – it is way deeper than that. Mostly, credit card companies offer different card types, interest rates, and they include varying other benefits to attract those who would like to purchase and transact using credit. Understanding the benefits and differences among others would help customers to have informed decisions.
Each company has its own interest buy vcc rate schemes. Their rates of interest offered may vary due to the type of the plastic card, to the class of person the company is offering their services to. Whatever they may be, customers must consider and must be fully aware of the interest level that they would engage into. Interest rate refers to the percentage that is charged on top of the credited amount. Rates are classified into either fixed interest rate: having, in theory, a fixed rate; or variable interest: an interest rate wherein the percentage fluctuates depending on the status of the prime rate index.
The type of plastic is also one of the defining factor to be considered when getting a card. There are standard cards which are offered by banks or credit companies which only has a few, straight-forward benefits. There are also some other types like affinity or co-branded cards which may profit 3rd party organizations, but would offer something in return – free items, discounts, bonus or free mileage in airlines, etc. Although there are other added bonus when using other types of cards, it does not always mean cheaper or more beneficial. In some cases, standard cards may offer lower rates of interest as compared to the other, non-standard cards.
There are some credit companies that waive the customers annual fees. The annual fee refers to the cost charged by the credit company to renew the services offered to the card holder. There are companies who waive the fee on the first to few years, to virtually every year while the card is being used. Some, however, may be optionally waived by the service provider depending on the credit standing you get with them within a particular year.
Credit card companies may have flexible payment options, giving the customers to select the payment modes most suitable to their financial capabilities. Another thing to consider is their offered credit limit. There are card issuers who would give card holders higher credit limit as compared with the others. Of course, most customers would want to have higher credit limit to increase their buying capacities.