Credit Cards

Choosing a Credit Card – Types to Consider

There are many objectives that can address cards issued by bank. It can be individual, corporate, or family; VISA or MasterCard; discount or identification; credit or debit; found full list of credit cards on There are many other words to address the item. Let’s try to look at all the kinds of credit cards and discuss their features and differences.

Credit Cards

Card Classification

A bank card is a personalized payment tool that enables a person to make payments for goods or services in a cashless way. It can also be used for cash withdrawals at ATMs in any country (there are no restrictions). The only thing necessary here is to prove your identity, which is to be attached to the plastic. So the main function of a bank card is to provide the person identification, so the one using it as the instrument for purchases/ cash withdrawals is to be identified.

A credit card provides its holder with a chance to obtain a loan. The only thing here to consider is that issued loan must be returned within a set period. Loan repayment is to be made at the expense of a deposit made by a person when opening a card account or by crediting the amount deposited by the owner in cash or by money transfer.

Being a carrier of electronic information, plastic can be divided into following types:

  • magnetic stripe credit card – it records information about its owner. The amount and type of data recorded on plastic depends on a bank that issued a plastic;
  • chipped credit card – it contains encrypted information about a cardholder.

Magnetic plastics are the most common today. However, according to experts, chipped payment cards are a better option since they are more secure and comfortable to use.

Safe banking

According to another classification, credit cards can be divided into following categories:

  • individual – they are intended only for individuals, which can be one person or a family of several members;
  • corporate – these are tied to the company banking account and can be used only by the company employee for business-related purposes. Such a plastic may be limited by the company (in terms of withdrawal/ payment amount), and then the cardholder can also set a limit on the use of funds. If the limit is not set, the cardholder can dispose of the total amount of the company in the account.
  • travel – these are intended for individuals and are used in abroad travels. A plastic of this type is usually tied to different partnership programs and discounts and allows its owner to save money and make purchases in any currency. There are no limits on where and how to use plastic.

What We Think!

Before choosing what plastic to issue, you should think about its purpose and terms of use. What is more, it is highly recommended to consider and set a credit limit and withdraw it in time to avoid extra charges.

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