The entertainment credit cards are high-end credit cards due to their exclusivity. There is a membership fee to become a cardholder. These cards are also usually called charge cards. American Express and Diners Club are the major entertainment credit cards. These cards do not have widespread acceptance like Visa or MasterCard but have much more purchasing power than normal credit cards. Besides credit, the entertainment credit cards have many extra benefits. Some cards give insurance, catalogues and cash advances. As there is no credit limit, they are exclusive.
The drawback of this feature is that you should clear the entire balance within 30-60 days. An outstanding balance will reflect negatively in your credit report and you will have to pay heavy fees on the account. Your account will be terminated if you cannot pay the entire balance. However expensive purchases are allowed an extension, so that you can pay the amount over the period of a few months. Travel expenses are given 36 months grace period. But the entertainment credit cards levy steep interest rate, between 19%-26%. You should also make minimum payments every month.
As the entertainment credit cards are not available to anybody, getting them is difficult. You should have a flawless credit history to be eligible for this card. Your annual income is also the important determining factor; hence you should be able to prove that you can easily repay the charges. You should be able to prove your trustworthiness to the credit card company, as this card has no credit limit.
People with unblemished credit and with an annual income of more than $100,000 can easily get entertainment credit cards. These people are guaranteed to clear their balance according to the terms and they have sufficient money to pay in case of default. As entertainment credit cards are in the higher echelons of credit cards, getting them is tough and cardholders should be in control of their accounts. This point should be noted as credit card companies quickly report to the credit agencies and hand over the accounts to a collection agency.