Comparing Credit Cards

When you are shopping for credit cards, you can afford to be choosy. There are a number of credit cards on the market today as banks vie for your business. The four main credit cards that are used today are issued through Visa, MasterCard, American Express or Discover.

American Express Credit Cards

American Express credit cards are issued through the American Express company. They consist of revolving charges and credit cards that have to be paid off each month. American Express issues the credit cards themselves and there is usually a fee. If you are just starting off in the credit world, you can usually get an American Express card that has to be paid off each month. There is an annual fee for this card. As you build your credit up, you can move up from the green card to the gold and even to platinum. American Express also offers new and exciting cards such as Blue, which is a revolving charge card.

Visa Credit Cards

Credit cards with the Visa logo are issued by a conglomerate of banks that house Bank of America. Visa used to be called Bank Americard when it was first introduced to the public back in the 1970s. Visa was always easier to get for people just starting out with credit. Visa cards can be secured or unsecured credit cards and can be issued by any bank. They are offered for prime and sub prime customers. Sub prime customers are those who have poor credit. Even someone with poor credit today can get a universal charge card like Visa.

MasterCard Credit Cards

MasterCard has always been the competitor of Visa and operates much like Visa. It used to be called Master Charge when it was first introduced, at the same time Bank Americard was introduced. Prior to that time, Americans had no universal charge card and everything was paid for by cash or opening up an account at a store. Like Visa, MasterCard is offered to both prime and sub prime borrowers and can be secured or unsecured.

Discover

Discover is issued by the Discover company and was the first of the credit cards to offer bonuses to borrowers such as cash back. Prior to Discover, customers were happy to pay for the privilege of having a credit card and paid an annual fee. Discover really opened up competition among credit cards as people liked the idea of getting something back from a charge. Discover fees were higher for the vendor which is why many vendors today do not like to accept this credit card.

You have your choice of which type of credit cards you want to get. You should try to get one of each and use them on a monthly basis, paying off the balance each month and then building up your credit score.