Ask These Girls

There are so many types of credit cards on the market today, a consumer must know which credit card is most beneficial and suited to them and their needs. I know I get so many credit card offers, I never know which one is right for me. The first time I started experimenting with credit cards, I just filled out every application I received. Well, that in and of itself is a bad practice.

When you have anyone regardless of affiliation check your credit rating, you get a “ping” on your rating. These pings do not bode well for you when trying to get any type of credit. I remember when I applied for a home loan; the fourth mortgage official I visited asked if I knew how many pings I have had in the past 3 months. Obviously, I had no idea what she meant, but then she explained to me the bad side of applying for credit.

Anyway, back to the types of credit cards. I compiled a list of the popular types of credit cards I know of, and am going to explain which one does what. With this knowledge, you will have a better understanding of which credit card offers may be more suited for your needs.

• Business Credit Card
  This is a credit card devised to meet the requirements of owning a small business to medium-sized business. Usually, the company will have a spending budget of under $1 million annually and less than 100 employees.
• Consolidated/Central Billing Card
  These are useful for businesses with a lot of employee expenses. All of the expenses are pooled into a single bill. Of course, one bill is a lot easier to manage than a dozen or more.
• Commercial Credit Card
  A commercial credit card is for businesses who have employees making purchases. Similar to the corporate credit card, but designed for businesses with less annual revenue and fewer employees.
• Corporate Credit Card
  A Corporate credit card is useful for allowing employees using a corporate spending account. Similar to a commercial credit card but designed for companies having an annual revenue over $1 million and more than 100 employees.
• Fleet Credit Card
  This is a type of commercial credit card, but is designed to be only used with travel-type expenses. These restricted credit cards are useful for employees always on the go. These can be either assigned a person or a specific vehicle.
• Personal Credit Card
  This is a credit card devised for personal use. These can be standard, secured, unsecured, student, platinum, gold, silver, or any number of other types of terms. These credit cards are issued and based on the personal information gleaned from the account information.
• Debit/Check Card
  These are what my son likes to call, a pretend credit card. They are linked to a saving and/or checking account. When you make a purchase and enter the pin number, the purchaser is asking the bank, “Hey, does this consumer have enough money in the account to pay for this transaction. Usually, the transaction is then placed on hold until the purchase is final. Be careful though, just because the bank says you have the money, does not mean you cannot incur overdraft fees!

These credit cards are the ones I know about, and I am sure there are many others that more are developed on a regular basis. Having a credit card is almost a necessity in the society we live in, but owning a credit card is also a great responsibility.