Not having a credit card is almost… well, it's almost "un-American" - or so goes the myth that causes so many credit problems for the average consumer. Broadly speaking, credit cards fall into 4 - 6 categories - but all of them can be categorized as either fixed or variable rate cards. US Debt Network calls upon long established relationships with many of these card issuers when we put a program in place to make you debt free through the process of debt negotiation - or debt renegotiation.
We think of credit cards as being:
- Bank Cards - such as your ATM or Debit card. Not really a "credit card" - but it looks like one and allows you to easily increase your cash out flow by simply swiping it for one of those impulse purchases we spoke of earlier.
- Charge Cards - are what we think of mostly when the term "credit card" is used. These are the ubiquitous Visa, MasterCard, Discover and American Express.
- Retail Cards - are "easy to get" cards issued directly by retailer from whom you purchase merchandise. Your Sears card is the most famous of these - though many other exist from fine retail institutions throughout the world. Watch out for a new category of Retail Card that offers credit from a consortium of retailers that honor that particular card. Most often, your selections with this new breed of charge card will be limited - and prices on the merchandise will be extraordinarily high to accommodate losses from the many bad credit risks these cards are issued to.
- Gold Cards - just like they sound. These are cards issued to consumers with exceptional credit and typically have smaller or no annual renewal fees, very low interest rates and in many cases, substantially high credit limits.
- Secured Cards - are "like credit cards" credit cards that are really not unsecured debt. This kind of card may be issued against a home equity loan or be tied to a Certificate of Deposit or minimum savings account balance the holder must maintain.
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