Choosing a credit card is not a simple job as new credit cards offers are at great competitions in the monetary segment. Think carefully and explore about all possible things you can, regarding the same. Various options like estimating rates, fees and other charges, returns and the amount of credit margin should be vigilantly thought upon before applying for credit cards. But prior to this you need to be aware about various types of credit card available at your service. Following are some of the most common types of those:
Standard Credit Cards
1. Balance transfer credit cards
The cards allow the users to transfer a high interest credit card balance onto a credit card account; held at different credit card company, with relatively low interest rate. While selecting balance transfer cards one ought to read all the terms and conditions about the card as it vary according to the offers.
2. Low-interest credit cards
These cards offer noteworthy savings for the user, particularly when larger purchases are made and also paid off before introductory period ends. They offer low introductory APR which further hike to a higher rate after a definite period of time or a sole low fixed-rate APR.
Credit cards with rewards programs
The card-holder earns rewards or incentives for shopping using their credit card. The reward structure is based on the accumulation of points the card-holder gets on usage of the card and those points enable them gain rewards. Following are account types classified under this category:
1. Cash-back credit cards
2. General reward points credit cards
3. Retail rewards credit cards
4. Automobile manufacturer rewards cards
5. Hotel or travel points credit cards
Bad credit or credit repair cards
Poor financial planning leads to bad credit that means non-satisfactory credit score. This certainly does not mean that the user cannot be eligible for holding a credit card. There are several credit cards intending to repair the current credit of the card holders, of course depending on the situation respectively. Following are account types classified under this category:
1. Pre-paid cards
Prepaid cards are not credit cards any how, but are used and acknowledged just like them. These cards assist in avoiding debts as all the purchases are paid in advance.
2. Secured credit cards
These are the cards which are secured by a deposit account owned by the cardholder. Secured credit cards are an alternative to enable a person who has a poor credit history or no credit history to have a credit card which might not otherwise be available.
Specialty credit cards
Specialty cards are designed to meet the distinctive needs of business professionals and students for their credit use.
1. Business Credit Cards
2. Student Credit Cards
