The basic Credit Card Types

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It may seem incredible, but credit card issuers clog the mails with over 2. 5 billion offers inviting people to apply for a credit card. Even those who would not qualify for a conventional credit card due to serious credit problems are now able to get one; some credit card issuers even specialize in this particular type of market. And according to financial gurus, there are at least a billion credit cards in active circulation throughout the united states alone.카드깡

Credit has been an economic cornerstone for some time now. Surveys show that the average American household is estimated to have at least twelve credit cards, including charge cards. While you may tend to think that one credit card is pretty much the same as the next, there are in actual fact distinct characteristics for each different credit card type. It is good to know these difference between the three different types of cards in the market: a bank credit card, a travel credit card, an entertainment credit card (although nowadays the combined travel and entertainment card has become more common) and a retail credit card or house card.

Bank Credit cards

You have probably noticed that most credit cards bear either the logo of Visa or Mastercard together with the name of the bank. It would appear that the credit card has been issued by either Visa or Mastercard. That is not quite an accurate assumption: these two companies do not issue credit cards directly to the consumers. Most of the credit cards on the market today are offered by thousands of banks around the globe. Each bank is linked to the credit card association, because are not allowed to issue any kind of card unless they are association members.

Visa is a privately held membership association, although it is preparing to go public. It started as an association of banks in California and the West Coast. There are over 20, 000 financial institutions in the membership rolls, and virtually all of them offer Visa Card. Mastercard is also a membership association, similar to Visa, and originally consisted of member banks in the East.

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