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Different Types of Credit Cards
Choosing which credit card will best serve your needs is important for everyone. Before filling in the application form for credit cards, it is important to know about different types of credit cards available through various banks and financial institutions. We have briefly described about common types of credit cards available to make it easier for you to choose from.
Student Credit Cards
It is often difficult for students to get a credit card as they do not have any or very little credit history. Fortunately, they have an option to get a student credit card which can help them build up a credit history. Although the ben efits and rewards in Student Credit Cards do not match traditional credit cards, they can be used to build a solid credit history if used wisely. Companies like Citi®, Discover®, Chase and Universal Entertainment offer students credit cards.
Business Credit Cards
These types of credit cards are designed for business owners and executives. Most of the features available are similar to traditional credit cards like cash back facility, airline rewards and low or no introductory fees. There can be additional features for business credit card owners like:
- High credit limits
- Additional cards for employees
- Savings on daily business purchases
- Account summaries (quarterly or annually)
Although many rewards and incentives are available on different credit cards, it is important to choose your business card wisely. You can also take the advice of your financial advisor before choosing your business credit card.
Reward Credit Cards
These types of cards are identical to cash back cards where you can gather points towards a reward arrangement. This is based on the usage of the card within a certain time period. There are many cards offering these types of reward programs. With ongoing marketing campaigns these offers keep on changing so it is important to choose the offer that best suits your needs.
Some of the reward programs offered by different credit cards are:
This kind of card is best for people who do most of their purchasing through credit cards and pay off their balance every month. However, if you are not able to pay your balance every month, this type of card could be dangerous for your credit.
Low APR Credit Cards
These are also known as low interest credit cards. Low APR cards either offer low introductory APR that can change to a higher rate after a certain predefined period or a low flat rate APR. These cards are advantageous when people want to make large purchases and need several months to make payments. This can help them save money by paying lower interest payments than regular credit cards.
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