Credit cards are cards that allows the cardholder to borrow money from their bank to make purchases. Co-branded credit cards are made available for customers who wish to have a customized credit card. There are several types of credit cards that are available to customers. It is important to know the credit card that best suit your need and each of them have their uses. The major types of credit cards are:
Standard credit cards: Commonly known as the plain vanilla credit card. This is due to the fact that the credit card offers no reward for users. Standard credit card are simple to understand. The funds in the card can be used for purchases and balance up after making deposit.
Balance credit cards: This type of credit card is used for making balance transfer on a credit card to another card, mostly to a new card. It offers low introductory rate and thus, it is the idea credit card for people who wants to save funds on high interest rate.
Rewards Credit Card: There are basically three types of rewards credit card namely; travel, cashback, and point. This type of credit cards offers rewards to cardholders on every credit card purchase. The travel reward is most popular among travelers because they can use it to get free flights, free hotel accommodation, and some other travel needs. The cashback reward is very simple and flexible. The point reward can be exchanged for cash or other things.
Charge credit cards: This type of credit cards has no spending limit but, the amount pent on the card must be paid in full at the end of every month to prevent card restrictions, cancellation or penalty fee.
Secured and Unsecured credit card:Secured credit card: Secured credit cards are for people without credit history at all. The card comes with a security deposit. The spending limit on the card usually equal to the deposit on it. While the unsecured credit cards are designed for people with fair to good credit history and is the most common of all credit cards.
Student credit cards: These cards are designed for college students because they do not have credit history. Student credit card are easily approved for students who are newly applying for cards.
Why the need for a credit card?
They are comfortable to carry hands free than money
It reduces spending limit
It offers many rewards for users
It is very flexible
Credit cards and co-branded credit cards are great options for everyone. Using a credit card comes with lots of offers.
Standard credit cards: Commonly known as the plain vanilla credit card. This is due to the fact that the credit card offers no reward for users. Standard credit card are simple to understand. The funds in the card can be used for purchases and balance up after making deposit.
Balance credit cards: This type of credit card is used for making balance transfer on a credit card to another card, mostly to a new card. It offers low introductory rate and thus, it is the idea credit card for people who wants to save funds on high interest rate.
Rewards Credit Card: There are basically three types of rewards credit card namely; travel, cashback, and point. This type of credit cards offers rewards to cardholders on every credit card purchase. The travel reward is most popular among travelers because they can use it to get free flights, free hotel accommodation, and some other travel needs. The cashback reward is very simple and flexible. The point reward can be exchanged for cash or other things.
Charge credit cards: This type of credit cards has no spending limit but, the amount pent on the card must be paid in full at the end of every month to prevent card restrictions, cancellation or penalty fee.
Secured and Unsecured credit card:Secured credit card: Secured credit cards are for people without credit history at all. The card comes with a security deposit. The spending limit on the card usually equal to the deposit on it. While the unsecured credit cards are designed for people with fair to good credit history and is the most common of all credit cards.
Student credit cards: These cards are designed for college students because they do not have credit history. Student credit card are easily approved for students who are newly applying for cards.
Why the need for a credit card?
They are comfortable to carry hands free than money
It reduces spending limit
It offers many rewards for users
It is very flexible
Credit cards and co-branded credit cards are great options for everyone. Using a credit card comes with lots of offers.
About the Author:
I am a professional publisher on credit card programs and has many views and opinions, many publishes at CNN and new websites on co-branded credit cards.. This article, Credit Cards: What Are The Various Types Of Credit Cards And Their Uses? has free reprint rights.
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