Credit cards were first introduced in the 1950's and have not looked back since, almost every working person in the United States today has either applied for, or has a credit card to his name. No matter what use you have for your credit card, there is a credit card that caters to your requirements. From student credit cards, to celebrity credit cards, there is nothing that a credit card cannot buy. Reasonable interest rates, and flexibility have made credit cards even more attractive and easily accessible to people.
Why should I have a credit card?
This is the most vital and in essence the first question that anyone should ask themselves, the answer is a really simple. No matter what purpose you plan to own a credit card for, you will have a company that will cater to your requirements, all you need to do is look around and settle for a credit card with a reasonable offer. The truth is that today people of all walks of life from students to top notch executives, have credit cards that are essentially tailor made for them. So the answer to the question why you should have a credit card is simple: Because it helps.
What are the various rates that are involved with credit cards?
A very good question, depending on how you are using your credit card, and the volume of usage there are some basic rates that are applicable. Lets start with the most basic, the yearly charge, an yearly charge is the minimum amount you have to pay to retain the credit card. Depending on which company you have chosen to have a credit card with the yearly charges vary. All credit card companies by law have to clearly mention the yearly charge applicable, so there is no fine print here.
Another charge that you might encounter is the APR (Annual Percentage Rate), this is the rate that credit cards charge if you plan to split your payments over a longer period of time. For example if you want to buy a car using your credit card, and want to pay the amount in installments spread across 2 years, then the interest rate charged is the APR. Once again, the APR that is applicable to you has to be clearly mentioned either with the credit card, or when you speak with a customer care executive to discuss the purchase.
The truth is that there is no such thing as fine print any more, everything has to be spelt out clearly before you are offered a credit card, there are some people who have concerns about security and privacy. This is another myth that has been created by movies and talk shows, the reality is unless you loose your credit card, there is pretty much no way an outsider can abuse your credit card. There are so many various checks and internal security measures that run parallel to your credit card, that you can rest assured that your credit card is secure.
