Thursday, April 17, 2008
Visa Vs MasterCard Which Is The Best?
The two leading credit card companies in the world today are the competitors Visa and MasterCard. They both operate along very similar lines. While Visa can claim to have almost a billion cards issued, MasterCard has over twenty five thousand banks issuing its cards and it is difficult to find any difference in the number of locations worldwide that accept the cards, which is now estimated at over twenty million.
In fact, as far as most consumers are concerned, there is no real difference between the two. They are both very widely accepted in over one hundred and fifty countries and it is very rare to find a location that will accept one but not the other.
However, neither Visa nor MasterCard actually issue any credit cards themselves. They are both simply methods of payment. They rely on banks in various countries to issue credit cards that utilise these payment methods. Therefore, the interest rates, rewards, annual fees, and all other charges are issued by your bank and when you pay your bill you are paying it to the bank or institution that issued your card and not Visa or MasterCard.
How Visa and MasterCard make their money is by charging the retailer for using their payment method. So the truth of the matter is that a Visa issued by say the Bank of Scotland will have very little to do with a Visa issued by other banks and may in fact by more similar to the Bank of Scotlands MasterCard.
What this means for the vast majority of customers is that you do not have to overly concern yourself with whether a credit card is MasterCard or Visa. You would be better off concentrating on the interest and other charges on the card, the balance transfer possibilities or their reward scheme. You are very unlikely to ever be effected by the fact that it is one and not the other.
If you prefer, if you are going to have two credit cards, you may decide that you want one of them to be Visa and the other MasterCard, this means that if something drastic were to happen to one company, or if you were in the unlikely position of finding a location that accepts one but not the other, then you would have the option of paying with either.
At the end of the day however, much more depends on the bank that gave you the card, than on the type of card it is.
Joe Kenny writes for CardGuide.co.uk, offering the latest information on credit cards, visit them today for more best buy credit cards.
Visit today: http://www.cardguide.co.uk
Some Tips On Using Credit Cards
After getting credit cards, it can be very tempting to go on a spending spree and buying all sorts of new things that you otherwise wont buy before. So, chances are there that you end up shopping a lot and go beyond your affordability level. Ultimately you may be in debt. So, you must resist that temptation and use your credit cards wisely. It may be difficult; but proper planning will be helpful.
To begin with, you have to remember that you should not spend more than what you can afford. You should have a budget to figure out your affordability. Subtract your monthly expenses from your monthly income. The result you get is your disposable income; you can afford to spend on shopping. Anything beyond this you spend may cause you trouble; remember this when you use your credit cards.
However, credit cards give you the leverage to go beyond the surplus amount. But you should not exceed your disposable income just because you can do this with the credit cards. Over usage of the cards may take you to above the credit limit and wont be able to spend any more, even if you have an emergency. And being unable to use the credit cards on emergencies is something really pathetic.
Do not use the credit cards on impulse. Unless it is very urgent, wait for some days and shop when you get some rebate or cash back. Very often, credit card companies give special offers; you can make use of these offers. This does not mean that you should not use your credit card except in emergencies. Rather, you should use your credit cards periodically. Finally, do not delay in paying off the bills. Delay in paying bills may make you pay some extra that is just money going down the drain.
The author is an expert in credit card and has written a number of authoritative articles on this subject. His articles are widely read because of the clever tips and valuable advices he provides in them.
