The dilemma facing many first time credit card applicants is whether they should go for Visa or MasterCard. But there are no significant differences between the two leading credit card brands. However a better knowledge about both the companies will help you use the rivalry between the two for your profit.
About Visa and MasterCard
The most important thing to note is that neither Visa nor MasterCard really issue credit cards. These companies do not handle consumers or merchants directly. Rather they develop and operate the universal computer networks to process the innumerable transactions that take place every day at various merchants and ATMs. They earn money from financial institutions to whom they have licensed the authority of marketing the MasterCard or Visa system to end consumers and merchants.
MasterCard and Visa have been strong rivals from a long time, each competing to be faster and more universal than the other. Every benefit offered on the credit card of one brand, is soon offered by the other. Today both companies provide mostly similar benefits like travel insurance, car rental insurance, product warranty extensions etc.
Both cards are universally accepted by about identical number of merchants. Majority of the merchants round the world take both cards, or if a merchant accepts only one brand, the merchant next door accepts the other. Hence whatever you want to use for the credit card for, you can be assured you won’t be disappointed, just because you have only one brand. Except for a selected few events, where only one brand of card is accepted, most of the times you will be ok.
Which Card is Right for You?
The answer to the above question depends on the whether the card is the first, second or third card.
For FIRST Credit Card
Here the card choice depends on your selection of the bank whose credit card you want to use or your most preferred promotional offer, without giving a thought to the brand on the card. Other than that, there is no difference between the two.
For SECOND Card
In this case, it makes sense to go for the competing brand of your first card and to opt for a different issuing bank. The logic is that when you have two different cards, both the banks will vie for your business (if your credit record is good). You will be given deals for 0% balance transfers, increased credit limits, and other benefits, since both the banks want you to use their card more. Also if you go to a merchant who accepts only one brand of card, you can use that specific brand to prevent being turned away.
For ADDITIONAL Credit Cards
Most people apply for more than 2 credit cards as they have found something specific that encourages them to go for more cards. You might be interested in another card for your business expenses, or to benefit from airline frequent flyer program. Here your choice is largely decided by the card that has held your attention to meet your certain requirements. You can compare the offers of various issuing banks to get the best deal, irrespective of the brand that provides it.
To summarize, selecting between Visa and MasterCard is not a perplexing question today. You will not make mistake by choosing either of the brand. For your second credit card, applying for a card from the competing brand is an intelligent move. If your credit record is good, very soon other banks will start chasing you for business.
Tags: Mastercard, Visa