A bank credit card, as the name suggests, is a credit card issued by a bank such as Citibank, Discover, or Chase. Since most banks only cater to their account holders, most bank issuers require consumers to open an account before they can qualify for a credit card. If you are thinking of signing up for your bank issued card, it pays to know its advantages and disadvantages to ensure that it is most beneficial to your needs.
Advantages
Acceptance value is one of the advantages of a bank credit card. It is accepted almost anywhere and everywhere, from major stores and establishments to small boutiques and restaurants. Most banks pair up with major credit card companies such as Visa and MasterCard, making them even more widely accepted anywhere around the globe.
Another plus factor for these cards is the facility they offer for automatic payments. You can spare yourself from hefty interest rates and late penalty fees brought about by missed payments and forgotten due dates. You can arrange with your bank to deduct your credit card balance directly from your bank account.
If you are a compulsive shopper and worry about maxing out your credit card every month, you can arrange with your bank to set a lower credit limit or go for a prepaid credit card if you want to take your credit card spending to another level.
Disadvantages
When compared to store credit card offers, your bank credit card may not fare very well when it comes to discount rates and rebates. Although store cards tend to give bigger discounts, cash back, and rewards, most of them are limited to store-made purchases.
Banks impose more stringent qualification requirements compared to other credit card issuers because a bank credit card tends to have a higher credit limit. So, this option may not be available for those who do not have the requisite credit score and credit history.
Also, if you find it difficult to curb your bad spending habits, your high credit limit may prove to be too much of a temptation.
Summary
A bank credit card may not be perfect for everybody, but it can be a valuable asset to the right person. So, make your inquiries and find out if this is the right card for you. Don’t forget to shop around; credit card comparison is a drill you can’t afford to do without.
