Types of Credit Card Accounts

Credit grantors generally topic three types of accounts. The fundamental terms of these account agreements are:

Revolving Agreement
(Typical Credit Card Account)

You may pay in full each month or prefer to make a partial payment based on the outstanding balance. If you make a fractional payment, you will be charge interest (a "finance charge") on the portion of the balance you do not pay. Department stores, gas and oil companies, and banks typically issue credit cards based on a revolve credit plan
Charge Agreement

You promise to give the full balance each month, so you do not have to pay interest charges. Charge cards and charge accounts with local businesses frequently require repayment on this basis.

Installment Agreement

You sign a contract to settle up a fixed amount of credit in equal payments over a specific period of time. Automobiles, furniture, and main appliances often are financed this way. Personal loans generally are paid back in installments, too.
1. Do you need a card?
What you will learn in this step: like it or not, it is hard to live without plastic.
For most people, credit cards are type of buying now, paying later – they are bringing forward purchases of good and services such as clothing and holidays rather than waiting until they have got the cash in the weeks or months ahead.
Those with good habits will pay off their credit cards balance each month - or at least a good portion of it. They used their credit card to "smooth" out their spending over the course of the year.
Unfortunately, for a some of people credit card isn't so fantastic. They're using their cards to buy things they want but cannot really afford now or later. They can't pay their card off in full at the end of the month, and their debt seems never ending.
That said, in this day and age it's a big step to live without a credit cards. Have you ever tried buying something to by phone or on the internet without a card at hand? How many time have you handed over a credit card, complete with signature, as identification? How much hard is it to pay your bills in person as banks and businesses close physical branches?
Like or not, credit cards are part of life for most people. That's why pay to be familiar with the different characteristics of the various types of cards, so you can choose the right mixed of interest rate, fees and features for you. Once you have got a card, handle it with care.