Debit, credit and store cards have slowly replaced the use of cash in everyday transactions. The majority of bank accounts now have debit cards as standard. The use of debit cards has become so wide spread that it has taken over the use of cheques.
Debit cards can be used for telephone and internet purchases, as can credit cards. The main difference between a credit and debit card is that credit cards are a form of lending – the banks are lending you money based on the promise that you will pay the bill later.
Storecards are simply a special form of credit card in that they are affiliated with a store or group of stores.
The following section will provide examples of the best credit cards available in the current market-place for a variety of different situations which you find yourself in.
It also provides examples of how to maximize the credit cards potential and how you can actually use your plastic to make money.
Debit Cards
With a debit card you can apply for an overdraft. Overdrawing your account is when you take out more money than you actually have in the account. It gives you a flexible way of managing your cash flow and can provide you with short term funds if you don't have enough money.
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Credit Cards
By using introduction offers you can dramatically cut the cost of credit cards borrowing, and then simply move on to another once it expires
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Store Cards
Store cards are credit cards tied to a particular store or for a chain of stores.
You can only receive a store card after a credit check, and usually there is an introductory offer to entice you to take out a store card. The only situation in which a store card is beneficial is if you are purchasing something big, a one-off purchase, and want to take advantage of the discount – do so, pay the bill in full and cancel the card.
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Charity Cards
These are credit cards which are linked to a charity. The lenders of these cards usually donate a percentage of all spend to the charity, with a lump-sum being donated when the card is first opened.
When choosing a charity credit card, be certain that you will be able to pay the bill in full each month, and then you can make your decision based solely on the size of the donation to charity.
Not many of these cards actually provide charities with a sizeable donation with most cards offering between 0.25-0.50% of normal spend. There are some exceptions to this, such as the AmexRed credit card which donates 1% of all spend to help fight AIDS in Africs.
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