Meanwhile, you may think that one credit card is almost the same as another, there are actually different characteristics for different types of credit cards. It's good to know the differences between the three different types of cards on the market: bank credit cards, travel credit cards, recreational credit cards, and many more.
Bank Credit Card:
You may have noticed that most credit cards have a Visa or MasterCard logo along with the bank name. Credit cards appear to be issued by Visa or MasterCard. This is not an opinion: these two organizations do not distribute credit cards immediately to consumers.
Nowadays almost thousands of bank is offering credit cards all around the world. Each bank is affiliated with a credit card association, as it is not allowed to issue any type of card unless it is a member of the association. Moreover, there is also the best option for credit cards that people are now able to modify it with the help of the Latest Designs available in the market.
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Visa is a private member association but is preparing to be waived. It started as an association of banks in California and the West Coast. There are more than 20,000 financial institutions on the membership list and almost all of them offer Visa cards. MasterCard is also a member association like visa and originally consisted of member banks in the east.
Bank credit cards are actually revolving lines of credit. When you receive a bank statement, you can pay all or part of your balance each month, restart the balance, and so on. As a line of credit, the account is offered with a defined credit line that depends on key factors such as disposable income, creditworthiness, etc.
Cardholders can run into problems if they don't manage their revolving credit lines properly. If you have a balance instead of paying it, the credit card issuer charges interest on that balance – in some cases, this interest can be very high. Interest rates vary widely depending on who issued the card. However, you can expect the average interest rate on credit cards to be around 18 percent.