What Are The Nine Different Types of Credit Cards?
As with most things in life, there is no such a thing as a one size fits all credit card. Credit cards were designed with many different individuals in mind. Here are nine different types of credit cards, some of which will fit your situation better than others do.
Unsecured Credit Cards
These are the most typical kinds of credit cards today. They are generally intended for individuals who have a range of from fair to excellent credit
Secured Credit Cards
These cards usually make you pay a security deposit in cash. It usually equates to all or half of the credit card limit. These cards are intended for those individuals who either lack credit or need to work on rebuilding their credit
Balance Transfer Credit Cards
Such cards allow you to transfer credit card balances from other credit cards to the new one in an effort to save on interest costs. Usually such new cards come with an introductory rate of 0 percent APR for a certain amount of time
Travel Rewards Credit Cards
This type of card gives you either points or miles which you can later redeem for purchases related to travel like hotels and airfares
Cash Back Rewards Credit Cards
Such credit cards give you a pre-set percentage in cash back on all eligible purchases
Gas Rewards Credit Cards
This card type rewards you with cash back when you use it at gas station pumps
Zero Percent Intro APR Credit Card
Such cards permit you an extended interest free grace period for upfront balance transfers and purchases
Student Credit Cards
Intended to be starter credit cards that can help you to establish or rebuild your credit, they usually start with smaller credit lines
A card that is valid at one set retailer, it provides you with point rewards for goods or services that you purchase at that retailer
With all of these credit cards, it is critical that you discipline yourself and remember that credit is not a cash substitute. Anything that you charge you need to be able to repay. Otherwise you will fall into a seemingly never ending debt trap.
Remember that some debts are better than others too. Debts that you have the money already in the bank to pay off are good ones that help you to build your credit by paying them on time. Debts for which you can not afford the purchase you are making are bad ones.
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