You want to apply for a card to charge some purchases with. After all, they are more convenient than either cash or checks. What kind of card is right for you? Learn the differences to make the best decision possible, for your lifestyle, budget and other circumstances.
Different cards for different people:

• Credit Cards are offered by many department stores, gas station, banks, grocery stores, and other companies. These are usually just for purchases made at that particular company, and there is almost always a limit on how much credit you can use. You may make monthly payments of a minimal amount, but beware of the high interest rates attached to them should you not pay by the due date. Some of them can go above 25 per cent interest at the end of each period. It is a good idea not to charge more than you can pay at the end of the month, so you don’t run into problems with owing a lot more than you originally spent. Also beware of hidden fees, such as an annual fee just for having the card.

• Charge Cards are offered by companies such as American Express, Master Card, Visa, Discover, and Diners Club. They sometimes have no limit to how much can be charged, but may require your balance to be paid off each month. They charge higher fees, and offer a small grace period to pay off your charges before they close your account and send your information to their collections department.

• ATM Cards are a convenient way for people to do their banking during non-business hours. They can be used to make withdrawals, deposits, check a balance, and transfer money from one account to another. They may not, however, be used to purchase items at a store or pay bills not associated with the bank they are from.

• Debit Cards may be used as a check would, to make purchases at a store, or pay a bill; or as an ATM Card would, in an ATM Machine to make deposits, withdrawals, check a balance, and transfer money to another account. They may also be used in the same way a credit card would at a store, but the money would be withdrawn directly from the bank account attached to the card. It is not the same as using credit.

One mistake people often make when using ATM and Debit cards, is forgetting to deduct purchases, or transferred money, from their checking or savings accounts. This can result in charges from the financial institution it is from, making a chain reaction of bouncing charges and less money there than should be.

No matter what kind of card or resources you use, make sure to keep good records. If using a credit card or a charge card, make your payments on time. Take advantage of any reward programs offered through the issuing companies, and don’t go over your limits.
The decision to use credit is one that should be entered into knowing all the options and all the possibilities. Use it to your advantage.