Feb10
Visa Credit Cards…Master Card Credit Cards..Whats the Difference?
Although a large number of people are swearing off using credit for any kind of purchase, mindful of the credit crisis spreading across the Western world like wildfire, there are still many for whom their “flexible friend” is an indispensable weapon in their financial armoury. For high-value purchases, often cash is simply not an option, while on overseas travel using your credit card can work out a lot cheaper than paying exchange surcharges every time you want to withdraw money. For those of us who are happy to continue with plastic, it is instructive to compare credit cards and see which will give us the better deal.
The two most prominent credit card brands on the planet are Visa and MasterCard. These two rivals have been battling for the larger market share ever since the credit revolution began a few decades back. Unless you are lucky enough to qualify for preferential banking offers, any credit card you are issued will most likely come from one of these companies. The issuing bank will have the most space on the card, with its name and logo having the most prominence, while the iconic and ever familiar MasterCard or Visa logo also be visible somewhere on the card.
As far as the use of the card goes, there is very little difference between these two. Both are widely accepted wherever you go in the world – this is in the merchant’s interest, as not accepting a certain type of credit card will see them miss business, however incremental this loss. As a rule of thumb, if you are traveling overseas it is worth keeping in mind that Europe seems to favor Visa, while the USA is more receptive to MasterCard. The UK seems to have equal provision for both, as do the most popular tourist destinations.
Comparing Visa and MasterCard is rather like comparing two different kinds of bottled water. Both do a perfectly good job for what they are, it is largely a matter of personal taste as to which you select. What you should look out for is the long-term interest rate on each card, rather than any special offers that you are offered. These special offers will often be enough to make a person sign up for a card, but just remember that the bank has to make their money from somewhere, so an excellent initial interest rate may well give way to a less-than-satisfactory one later on.
Credit cards that are more exclusive do exist – the American Express name is known worldwide as a byword for financial big hitting and is often mentioned by people looking to impress with the size of their bank balance. While the AmEx and Diners Club cards used to be used as “charge cards” – with the balance needing to be paid in full each month, both do now allow the holder to carry a balance from month to month. There are, however, both annual fees and credit scoring requirements that put both beyond the reach of many people – particularly in the present climate.
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