Different Types of Credit Cards Essay Example for Free

Different Types of recognition peckers EssayINTRODUCTIONIn this assignment, I am doing a particular study about the different types of recognize nibs. A creed neb is a payment account issued to users as a system of payment. It dedicates the cardbe atomic number 18r to pay for goods and services based on the carriers promise to pay for them. The issuer of the card creates a revolving account and grants a line of honorable mention to the consumer (or the user) from which the user displace borrow money for payment to a merchant or as a cash advance to the user. A recognise card is different from a charge card a charge card requires the balance to be paid in full each month. In contrast, credit card game allow the consumers a continuing balance of debt, subject to interest being charged. A credit card also differs from a cash card, which earth-closet be utilize like currency by the ingester of the card. A credit card differs from a charge card also in that a credit ca rd typically involves a third-party entity that pays the seller and is reimbursed by the buyer, whereas a charge card simply defers payment by the buyer until a later date. The size of around credit cards is 85.60 53.98 mm (33/8 21/8 in), conforming to the ISO/IEC 7810 ID-1 standard. Credit cards have an embossed bank card number complying with the ISO/IEC 7812 counting standard.Credit cardsCredit cards now are of sundry(a) types with different fees, interest rates and rewarding programs. When applying for a credit card, it is important to record of their diverse types to know the one best suited to their lifestyle and financial status. Different types of credit cards available by banks and other companies/organizations are concisely described below.Standard Credit CardThis is the most commonly employ. One is allowed to use money up to a certain limit. The account holder has to peak up the amount once the level of the balance goes down. An outstanding balance gets a penalty charge.Premium Credit CardThis has a much high bank account and fees. Incentives are offered in this over and above that in a standard card. Credit card holders are offered travel incentives, reward points, caskful back and other rewards on the use of this card. This is also called the Reward Credit Card. Some examples are airlines frequent flier credit card, cash back credit card, automobile manufacturers rewards credit card. atomic number 78 and Gold, MasterCard and Visa card fall into this category .Secured Credit CardPeople without credit history or with tarnished credit lavatory avail this card. A security deposit is required amounting to the same as the credit limit. Revolving balance is required according to the buying and selling done. The cardholder of a secured credit card is still expected to make regular payments, as with a regular credit card, but should they default on a payment, the card issuer has the survival of the fittest of recovering the cost of the purchas es paid to the merchants out of the deposit. The advantage of the secured card for an individual with negative or no credit history is that most companies report regularly to the major credit bureaus.This allows building a positive credit history. Although the deposit is in the hands of the credit card issuer as security in the item of default by the consumer, the deposit will not be debited simply for missing one or two payments. Usually the deposit is only used as an offset when the account is closed, either at the request of the customer or due to severe delinquency (150 to 180 days). This means that an account which is less(prenominal) than 150 days delinquent will continue to accrue interest and fees, and could result in a balance which is much higher than the actual credit limit on the card.Limited Purpose Credit CardThere is limitation to its use and is to be used only for particular applications. This is used for establishing midget credits such as gas credits and credit at departmental stores. Minimal charges are levied.Charge Credit CardThis requires the card holder to make full payment of the balance every month and therefore there is no limit to credit. Because of the spending flexibility, the card holder is expected to have a higher income level and high credit score. Penalty is incurred if full payment of the balance is not done in time.Specialty Credit CardIt is used for business purposes enabling businessmen to keep their businesses transactions separately in a convenient way. Charge cards and standard cards are available for this. Also, students enrolled in an accredited 4-year college/university course can avail this benefit.Prepaid Credit CardHere, money is loaded by the card holder on to the card. It is like a debit card except that it is not tied up with a bank account. This is directly connected to savings account. The payments from this card can be made until there is balance in the account. Low Interest Rate Credit Cards This credit card is highly useful as they will have low interest rates.Business Credit CardsCredit cards that are specifically for business use only. They give the favor for business owners to have an easy method of keeping and separating personal and business transaction. This credit card is available for businessmen who have large home, small scale or medium scale business to look after. This card is highly useful for facilitating businessmans training programs, travel and entertainment programs.Gold Credit CardGold credit cards are made for higher income groups who also have higher credit rating. It is a status symbol and is considered prestigious. The features of fluent credit cards are Cash bear offal limit is higherCredit limit is higherProvides one Add-on card which can be given to either, spouse, children or parents of the credit card holder Provides many privileges such as travel insurance policy, reward points, cash back offers etc.Platinum or Titanium CardPlatinum or Titanium c ards are similar to gold credit cards but they have few more than additional benefits. The additional features may differ from bank to bank. Few common features are listed below Protection against credit card loss and theft.Protection against online craft transactionsProtection against sickness and injury by an accident.There is no yearly feeSilver Credit CardSilver credit cards are the standard credit cards available and most of the employed people with 4 or 5 years experience can own this type of card. The features of silver cards are Lower membership feesThe applicant need not be a high- salaried person to buy silver card. The interest rate is 0% initially between 6-9 months when transferring account balance from one credit provider to another one. If the credit history of the card holder is good, the credit limit provided will be the same as provided to other credit cards.There are many other types of credit cards interchange in India. Few are mentioned belowRewards Credit C ardThis card has rewards attached to it on based on usage of the card, for e.g. A card may offer 5% discount on fuel, if it is used to buy fuel and gas, or a card may offer cash back quickness if a certain amount is spent through it.Balance Transfer Credit CardThis card is bought to pay outstanding amount of one card with the other. In this too there are cards that offer interest-free time period.List of credit cards provided by the various banksIndian Overseas blaspheme Visa International Credit cardAxis Platinum cardBank of Indias India CardGold International CardCitibank Dinners Club International cardICICI Bank Online cardSyndicate Global Gold Credit CardCorpBank Gold cardVijaya Bank Visa Gold Credit CardHSBC Platinum cardCorpBank Classic cardVijaya Bank VISA Classic International CardHDFC Silver credit cardConclusionHere we discussed about various types credit cards that using for the simplicity in transactions. Many credit cards can also be used in an ATM to withdraw money a gainst the credit limit extended to the card, but many card issuers charge interest on cash advances before they do so on purchases. As well as convenient, accessible credit, credit cards offer consumers an easy way to track expenses, which is necessary for both monitoring personal expenditures and the bring in of work-related expenses for taxation and reimbursement purposes.Credit cards are accepted worldwide, and are available with a large variety of credit limits, repayment arrangement, and other perks (such as insurance protection, rewards schemes in which points earned by purchasing goods with the card can be redeemed for further goods and services or cashback). Some countries, such as the fall in States, the United Kingdom, and France, limit the amount for which a consumer can be held liable due to fraudulent transactions as a result of a consumers credit card being lost or stolen.