Credit Card Consolidation Loan Educate Consumers About Credit Cards and How to Choose the Right One

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CreditCardConsolidationLoan.org publishes an article that focuses on the different features and types of credit cards than consumers can use.

Credit Card Consolidation Loan

Consumers are encouraged to consider their spending lifestyles when choosing a type of card to use.

Credit Card Consolidation Loan, a website that offers debt consolidation loan as a credit card debt solution, continues to educate people about the basics of credit cards. Their first article for the month of October is entitled, “What Type Of Credit Card Should You Use?” The article aims to educate consumers on the different features and types of credit cards that they can choose from.

The article begins by somewhat defending credit cards. Although it acknowledges that it can destroy the finances of a person, Credit Card Consolidation Loan believes that it is the consumer’s fault for the wrong use of the card when making purchases.

Since knowledge is the best preventive measure for debt, the article points out the important features that consumers, especially first time card holders must look into.

1. APR or the Annual Percentage Rate. It is the interest rate that will affect the finance charge of the consumer when balance is not fully paid within the grace period.
2. Finance charge. The article explains this to be the amount added to the balance when it is carried over to the next billing cycle.
3. Credit limit. This is the balance limit that the consumer is allowed to incur on the credit card at one time.
4. Grace period. The article mentions that when payment is made within this period, the consumer will not accrue interest on their debts.
5. Rewards program. This varies from card to card. It is simply the reward that consumer will get for using the card. The article encourages consumers to choose a card with a rewards program that complements their spending habits.
6. Credit card fees. The consumer is also urged to know the fees and also penalties that they could face when they violate the credit card contract (e.g. late penalty fees, annual fees, etc).

After discussing the important features of credit cards, the article went on to describe the 7 major types of credit cards. Consumers are encouraged to consider their spending lifestyles when choosing a type of card to use.

1. Standard credit cards. These are the regular type of cards with a credit limit. They have finance charges, minimum payment requirements and late penalty charges. There are no rewards program for this type of card.
2. Premium credit cards. The article states that these are similar to standard cards but it has a rewards program.
3. Secured credit cards. This type of card, according to the article requires an initial deposit before it can be used. It serves as the credit limit of the consumer. There are still monthly payments to be made on this card since every use will not be deducted from the deposited amount.
4. Charge cards. This card does not have a credit limit but consumers are required to pay the full balance immediately.
5. Prepaid cards. This also requires an initial deposit but every purchase will be deducted from this amount. Once the amount is consumed, another deposit must be made.
6. Business credit cards. This is a card exclusive for company use only.
7. Limited purpose cards. These cards vary and has a limited purpose (e.g. gas cards, store cards).

With this information, Credit Card Consolidation Loan hopes that consumers will get the most benefit from the card they will choose.

To read the whole article, click on this link: http://creditcardconsolidationloan.org/what-type-of-credit-card-should-you-use/. Visit CreditCardConsolidationLoan.org for more information about credit cards and credit card debt relief.

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Sandra Doyle
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