Dec 26 2008
Three Basic Types of Credit Cards
1. The first type of credit cards is single-payment credit. Services and items are disbursed for in a single paying, within a set period after the buy. The rate of interest is often not charged. Instances take in medical services, utility companies, and some retail businesses.
2. Installment credit is the second type of credit cards. Services and merchandise are disbursed in two or more regularly planned payments of a fixed amount. The rate of interest is included. Patterns comprise some retail businesses like appliance and car dealers, as well as consumer finance companies, commercial banks, loans and savings, and credit unions. Also, money can be loaned for a specific purpose, with the client agreeing to pay back the debt in two or more regularly planned payments.
3. Revolving credit is another type of credit card. Many items may be bought utilizing this plan when the total number does not go through the credit user’s given dollar limit. Payment off is made at usual periods for any number above or at the minimum demanded amount. The rate of interest is charged on the rest balance. Instances consist of various retail stores credit cards plus financial institutions, which issue credit cards.