All Credit Card Types

All Credit Card Types

There are various types of credit cards so you will have to look at the type of card that you need if you want to get a credit card. In order for you to make the right credit card decision you should look at all credit card types. This will help you in knowing more about all credit card types and narrowing down which applies to you.

All Credit Card Types

1. Standard Credit Card

The standard credit card can also be referred to as ‘plain vanilla’; this is because these credit cards have no extras to them they are just a credit card.

The standard credit card will have a credit limit placed on them. When you buy something you will use the credit on the card so that you can buy it right then. At the end of the month you will need to replace the credit by making the due payment on your credit card. This will then make the credit available once more.

If there is an outstanding balance on your credit card at the end of the month, you will be charged for this. There is also a required minimum payment that has to be made every month on the date it is due. If you fail to pay on the set date you will incur a late charge.

2, Balance Transfer Credit Card

If you opt for a balance transfer credit card you will be offered a limited time only low introductory rate on balance transfers.

The offers for balance transfer cards vary in their interest rate and the promotional time period. The lower the rate is then the longer the time period is as they are attractive but you will need a good credit to qualify.

3. Rewards Credit Cards

The rewards credit card offers rewards to the user when they make a purchase with their credit card.

Generally there are three reward card types, those being:

·         Cashback

·         Points and

·         Travel

The type of reward you choose will depend on which will be more beneficial to you.

4. Student Credit Cards

As a student or a young adult you will most likely not have a credit history or very little, which is where student credit cards come in.

As a new credit card applicant it will be easier to obtain a student credit card than any of the others. These may also have additional perks like low interest rates on balance transfer and rewards.

 

5. Charge Card

There is no pre-set spending limit on a charge card but the full amount must be paid each month.

If you are late in paying the full amount you will incur a late fee, charge restrictions and even card cancellation depending on the card agreement.

 

6. Secured Credit Cards

If you do not have a credit history you suffer with bad credit then you can look at the secured credit card.

The card requires a security deposit to be loaded which will also act as your credit limit.

You will still need to make the payments for the card each month.

7. Subprime Credit Cards

The subprime credit cards are not a good choice however they are offered for those that have bad credit and are unable to obtain credit another way.

These cards have complex terms that may confuse you but they also have a high interest and pricey fees.

8. Prepaid Cards

A prepaid card is not actually a credit card and is not able to aid in a credit score but they can help you manage your finance.

In order to use a prepaid card an amount of money will need to be loaded on to the card which can then be used to pay for items. You will have to top up this card when there are no more funds. These cards also have no fees attached to them or minimum repayments.

9. Limited Purpose Cards

Limited Purpose Cards are used like a credit card but can only be used in specific locations. These do have finance charges and minimum payments that need to be made.

Limited purpose cards are store credit cards or gas credit cards.

10. Business Credit Cards

A business credit card is intended for business use. Business owners will get one of these cards so that they are able to separate business and personal transactions.

These are all credit card types that you can choose from. These cards will all work in credit card machines like those from SureSwipe.