Credit Cards : A SearchMeSilly Guide

Standard Cards
They are available from many banks and financial institutions and allow you to pay for goods and services worldwide, where the relevant logo on the card appears. Some cards charge interest immediately, but is usually not the case if your monthly repayments are kept, in full. If however the debt is payed by installments, there will be a charge.

Platinum and Gold Cards
Like the standard credit cards but usually reserved for people with a higher income. As a result, they have a higher annual charge but often come with various benefits and facillities, such as travel insurance, loans on demand, free card protection, savings on travel and/or hotels and free extended warranty for additional year(s) on many household appliances.

Charity and Affinity Cards
There is an affiliation here between the issuer and the charity or organisation. So although these operate in the same way as standard credit cards, there is a donation made when the card is taken out along with a continual percentage of what is spent.

Charge Cards
Sometimes named Travel and Entertainment cards (T&E), they present benefits to travellers and are different from credit cards. They usually comprise a higher monthly spending limit and there could be a large financial penalty if the entire balance is not paid each month. Charge Cards allow the same kind of payments made as Credit Cards and some will allow for cash to be withdrawn. An annual fee is also likely.

Store Cards
This type of credit card is issued by the retailer, be it an individual or chain of shops and this is where you will be able to use the card (unless it’s endorsed by credit card company). Some interest rates are comparable to those of bank credit cards, although it is likely to find them higher, some charging up to 30% per annum more. You may also find discounts on goods if you use your card.

Debit Cards
Like a plastic cheque, they are an extension of your bank account (usually current account) and therefore, the purchases made are deducted from the account within a few days. They act as a cheque guarantee card.