Insight on 5 types of Credit Cards

1. CREDIT CARDS
What Types of Cards Are Available?
Credit Cards: These cards are issued by
banks and give you line of credit. You use
the card to pay for items and services up to
a certain total amount -- your credit limit.
You receive a statement from the issuer each
month with a minimum payment due.
Charge Cards: These are also called travel
and entertainment cards and are a little
different from credit cards. Charge cards,
such as American Express and Diners Club,
have no credit limit. You can usually charge
as much as you want, but are required to pay
off your entire balance when your bill
arrives.
ATM Cards: ATM cards are issued by banks,
essentially to give bank customers flexibility
in their banking hours. In most areas, you
can use an ATM card to withdraw money,
make deposits, transfer money between
accounts, find out your balance, get a cash
advance, and even make loan payments at
all hours of the day or night.
Debit Cards: Debit cards are attached to
your savings or checking account that you
have established with a financial institution.
Debit Cards combine the functions of an ATM
card and Checks. Debit cards can be used a
check payment for bills. When you pay with
a debit card, the money is automatically
deducted from your checking/saving
account. Including your ATM withdrawals.
There are 5 Types of Cards! INSIDE THIS ISSUE
5 Types of Cards 1
Credit Cards 2
Charge Cards/ATM Cards/Debit Cards 3
Prepaid Cards 4
Miscellaneous Cards/Credit Cards for Bad Credit 5
Thank page 6
Prepaid Cards: These cards are for secured
accounts. You only spend what you deposit on
the card. It can be used just like a credit
card. These are also used for a teaching tool
to help kids understand money.
Regardless of what card is being used.
There are fees involved.
With any Debit/Credit card that you apply for,
make sure to do your research, and it is
recommended to read the terms and
conditions before filling out any application
for a card.
Please see Great Articles on page 4

2. Page 2 Newsletter Title
Credit Cards:
• Credit Cards are used all over the world,
traveling, retail purchases, gas purchases,
groceries, even pays bills and believe it or not
some use one credit card to make a payment
on another credit card. The average card
holder abuses the credit card, because we
think “what the hell”, I can pay for it next month.
Sad reality is we never really pay off the credit
card. If you would like a good example and real
easy to understand how a CREDIT CARD
REALLY WORKS. Go to www.youtube.com
and watch the video called. “Credit Card Debt
Explained with A Glass of Water”.
• How Do Credit Card Companies Calculate
Credit Card Interest Each Month? To calculate
the interest on your card each month, the
lender multiplies the card's interest rate (the
APR) times your card balance. This will give
the interest for the entire year. The lender will
divide this interest calculated by the number of
months in the year, or 12.
• Interest Rate: Interest rates on credit card plans
change over time. Some are explicitly tied to
changes in other interest rates such as the
prime rate or the Treasury Bill rate and are
called variable rate plans. Others are not
Credit Cards
The average credit card holder has at
least 2 to 3 credit card accounts.
2012 over 1.5 billion consumers own
a credit card. Almost half end up
having Credit Debt for years.
A caption describes the picture or graphic.
explicitly tied to changes in other interest
rates and are called fixed rate plans.
• There are other fees that contribute to using
a credit card: Some have annual fees,
charge for cash advances; IMPORTANT to
read the terms and conditions of a credit
card before filling out an application.
• College Students are the most vulnerable to
these types of credit cards. They go off to
college, get a job and the next thing they
know because they have a student loan/s;
the big banks start sending them non-secure
credit card offers. College students use the
cards for books, clothes, and before they
know it, they are in debt and calling home for
help.
College Students fall prey every year to
those Credit Card offers

3. Page 3Newsletter Title
A caption is a sentence describing a
picture or graphic.
CHARGE CARDS
• A charge card does not extend credit to the
cardholder whereas a regular credit card like a
Visa or Mastercard does.
• A charge card does not extend credit, by
definition, you have to pay in full every month. A
credit card does not require that you pay in full
every month. All that is required is that you pay the
minimum balance. That is one of the ways credit
card issuers make money from you (via extending
credit and earning interest).
• Charge card charges an annual fee whereas most
regular credit cards have no annual fee (with the
exception of some travel credit cards).
• Charge cards normally come with a reward
program. For American Express, you get the
Membership Rewards. For Diners Club, you get
Diner Club Rewards. Regular credit cards can
either have rewards or not.
ATM Cards DEBIT CARDS
• An ATM (automatic teller machine) card is a
form of debit card but you use it in a cash
machine by punching in your code number. An
ATM card looks nothing like a credit card, has
no Visa or MC logos on it, and is only good for
making cash withdrawals from your checking
account at cash machines.
• The ATM card is a little less dangerous if you
lose it, since nobody can use it to drain your
account without knowing your PIN (personal
identification number). Also, most banks limit
the amount of cash that can be withdrawn with
an ATM card in a day. A VISA or MasterCard
debit card allows a thief clean out your entire
account with one purchase.
• A Debit Card is not a credit card. A debit card
looks very much like a credit card and is treated
like a credit card by most merchants but the
purchase is immediately deducted from your
checking account. Instead of running up a bill
that you pay at the end of the month, the debit
card runs down your checking account at the
moment the sale is made. Merchants like these
because they get instant payment without
worrying about bad checks.

4. Page 4 Newsletter Title
PREPAID CREDIT CARDS
Prepaid Cards differ a lot from regular credit cards. When you apply for a regular unsecured credit card, you have to understand
things like APR, Grace Period, Method of Balance Calculations etc.
Prepaid Cards have a whole set of different things to be aware of.
Prepaid Cards have fees that need to be taken into consideration when applying, but no different than the interest rate, and fees
that come with a credit card.
A Prepaid Cards can be used to deposit money, pay bills, make purchases, and withdraw cash at ATMs. Prepaid Cards allows
you to buy things online and, depending on the policy of the particular company, even rent a car or book a hotel room.
If you're wondering whether or not a prepaid card is right for you, it will help to know that prepaid cards have three primary
applications: 1) As replacement checking accounts; 2) As financial literacy teaching tools; and 3) As check cashing alternatives.
Below you will find an explanation of how prepaid cards serve these purposes and what you should look for when trying to find
the right prepaid card for each:
• Replacement Checking Account: Pretty much everything you can do with a checking account/debit card can also be
done with a prepaid card; you just won’t have an actual checkbook. If you plan on using your prepaid card as a
replacement checking account, either because the cost of your traditional checking account has risen or you cannot get
approved for a traditional checking account, you obviously want one that offers free direct deposit, ATM withdrawals,
and online bill pay. In addition, if you are utilizing direct deposit, it's fair to expect not to be charged any monthly fees.
• Financial Literacy Teaching Tool: Loading your child's allowance onto a prepaid card is a good way to get them started
on the road to financial responsibility. Prepaid cards offer online account management, which allows you to review your
child’s spending habits with them. You can also give them enough money to last a couple of weeks in order to instill the
importance of budgeting. Just getting used to making transactions with plastic will be a benefit as well.If you plan on
using your prepaid card as a financial literacy teaching tool, you’ll want a card that has a low monthly fee and no fees
for in-network ATM withdrawals or making purchases. In addition, you should avoid cards with inactivity fees or fees for
customer service because you don’t want to get your child in the habit of having to make purchases or prevent them
from asking questions.
• Check Cashing Tool: Many people cannot utilize direct deposit, but need to cash paychecks nonetheless. Check
cashing stores tend to be expensive, so if you can find a prepaid card that allows you to load checks and withdraw cash
for free, that would save you a lot of money in the long run. If you plan on using your prepaid card in this manner, you’ll
most likely need a card offered by a large national bank with nearby branches, like the Chase Liquid Card.
It's important to note that if you're interested in building your credit history, a secured credit card is a much better option than a
prepaid card. Some prepaid cards will allow you to apply for a short-term loan once you have met certain requirements, such as
making two direct deposits on your prepaid account. If you are approved for this loan, then your payment history will be reported
to the three major credit bureaus.

5. Page 5Newsletter Title
There are banks out there that offer cards that
are secure, or non-secure for consumers that
have BAD CREDIT. Things happen in life that we
have no control over and it can leave us with a
Bad Credit History. Bankruptcy, Divorce, Identity
Theft, Loss of employment, so many things can
happen that can destroy our good standings.
These type of credit cards are used for
consumers who want to rebuild their credit. It is
not an easy road to take, but it is possible to start
over again.
Capital One Mastercard, Visa Platinum ( by
Credit One Bank), First Progress Platinum
Mastercard, Elite Mastercard, and the Prestige
Mastercard, The Merrick Visa Card, and even
Harley Davison has a card to help rebuild.
The Annual Fees for these cards range from
CREDT CARDS THAT WILL HELP YOU REBUILD YOUR
CREDIT.
$29 - $99 a year. Harley Davison does NOT have an
Annual Fee.
Only the Visa Platinum (by Credit One Bank) is an
unsecure Credit Card, but it carries the highest annual
fee, and a 23.99 interest rate.
Do your Homework when getting ready to
apply for any type of credit or loans. Read
that fine print. Read those Terms and
Conditions.
Keep good track of your finances. Budget
yourself. Take control, because if you don’t
bad things happen to our credit, and our
lives.
MISCELLANEOUS CARDS
• Department Stores – JcPenneys, Macy, etc
• Hardware Stores – Home Depot, Lowes etc
• Gift Cards – Restaurants, Visa, Mastercards etc
All cards come with some type of fee. You have to
decide on what you are comfortable paying.
Credit Cards, Debit Cards, ATM Cards, Charge
Cards, Gift Cards, Phone Cards, they are always
going to be around. You just can’t avoid them. Get
educated about them. It’s the only way.

6. Prepaid Credit
Professionals thanks you
For becoming a
Subscriber and looks
Forward to keeping you
Informed.
By Amy Susi

7. Prepaid Credit
Professionals thanks you
For becoming a
Subscriber and looks
Forward to keeping you
Informed.
By Amy Susi