Blog sponsored by Bankrupt-Law.com


With all the different kinds of credit features and benefits out there,
choosing the right card for your needs can be time-consuming. Knowing and
understanding the difference between these cards can help you make the right
decision and get the most out of the card you choose.
Affinity Card--A credit card that is associated with an organization, such
as a university or professional association. In some cases, when you make
charges on an affinity card, part of the service fee goes to the support of
the associated organization.
Benefits: You can support your favorite organizations just by using your
card.
Debit Card--Not a credit card at all, this card allows you automatic access
to funds in your bank or credit union account. A debit transaction directly
subtracts from the money you have. It is different from a credit card in
that it is not a loan or advance, but a deduction.
On-line Debit Card--commonly known as an ATM card. Transactions made with an
on-line card are posted and withdrawn from your bank account immediately or
within the same day. Your PIN number is required to authorize an on-line
purchase.
Off-line Debit Card--referred to as a "check" card. Transactions made with
an off-line card take one to three days to be posted and for funds to be
withdrawn. Your signature is required on the printed receipt every time you
perform an off-line debit transaction.
Benefits: Debit cards offer the convenience of plastic without a bill to pay
at the end of the month or the possibility of interest charges.
Rebate Card--A "give back" or "incentive" card. A rebate card offers
bonuses, such as airline mileage, cash rebates, or purchase rebates, to
cardholders, often for the dollar amount charged on the card.
Benefits: You can capitalize on rebate offers and earn some serious savings
if you pay off your rebate card balance regularly.
Secured Card--applicants are required to deposit a collateral fund into an
account before a secured card can be issued. The fund will be accessed if
the credit card account is seriously defaulted.
Benefits: Obtaining a secured card is a good way to establish credit.
Smart Card--The latest in credit card technology, a smart card stores
information on an integrated microprocessor chip rather than on the magnetic
strip of a regular credit card. Although not yet widely available in the
United States, these cards are thought by many to be the card of the future.
Benefits: The information stored on a smart card is more secured due to the
embedded chip technology.
Supplementary Card--given to an "authorized-user" for a credit card account.
A supplementary card gives your family members access to use your credit
account. Despite their usage, you are still solely responsible for the
account.
Benefits: You can extend the convenience of credit to family members who
need a credit card by giving them a supplementary