A credit card is a form of borrowing that often involves charges. Credit terms and conditions affect your overall cost. So it’s wise to compare terms and fees before you agree to open a credit or charge card account. The following are some important terms to consider that generally must be disclosed in credit card applications or in solicitations that require no application. You also may want to ask about these terms when you’re shopping for a card. Broadly speaking, there are three types of credit card accounts. They are: bank cards (such as Visa and MasterCard), store/priority cards (such as the Bay and Sears) and travel/entertainment cards, also called charge cards (such as American Express or Diner’s Club).
Before you submit a credit application, get a copy of your credit report to make sure it’s accurate. The three major national credit bureaus are:
- EQUIFAX – http://www.equifax.com/
- EXPERIAN – http://www.experian.com/
- TRANS UNION – http://www.transunion.com/
Credit scores are used by any organization that deals with the lending of money, from student credit cards to colleges to realties. Companies that judge risk use your credit score, such as insurance agencies. Here is a short list of company types that are known to check your credit:
- Banks & credit unions
- Employers
- Cable & telephone service companies
- Cellular and Internet service companies
- Mortgage, loan, and student credit card companies
- Colleges and private schools
- Private college loans
Regardless of THE type of credit card you choose, be sure to discuss your specific financial needs with your financial advisor or accountant before applying for any credit card. It is a must that you understand the benefits of having a credit card like safety, valuable consumer protections under the law, and the accessibility and availability of services. The most popular credit cards include Chase Manhattan Bank, Citibank, Bank of America, BankOne, American Express, Discover® Card, First Premier Bank, Advanta, HSBC Bank, and MasterCard Credit Cards.
Your credit rating, score, and report are the keys to financial freedom in the modern world. Good credit opens doors, bad credit closes them. We hope you have found this tutorial to be handy and helpful. As your credit builds and improves, the rates and terms on new student credit cards you get will improve.
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