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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 card: this is a credit card with no rewards. Using the card has no reward. They are very easy to use. The cards are used in making purchases and balancing up again when deposit is made on the card. The card comes with monthly charges. And, the card must be loaded up before the limited date lapses or else, late payment charges will be charged to the cardholder.
Balance credit card: this card comes with a cheap introductory rate on balance transfer. It allows customers to transfer the balance on the credit card to another card while charging a low 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 cards: this card comes with no spending limit thus, allowing the cardholder to spend as they wish. It terms include that all balances be paid in full at the end of the month. Failure to pay up all balances at the end of the month comes with penalty which could be card cancellation, restrictions, or a fee.
Secured and Unsecured credit card: The secured credit cards is for those people free of credit history. The card comes with a security deposit. Also, the card spending limit is the same as the amount of fund deposit in it. And the unsecured credit cards are for those with good credit. This type of card is preferred by most people.
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.
Advantages of using a credit card
It is very easy to carry in pocket or purse than cash
It reduces spending limit
It comes with rewards
They can be used in all currency
Credit cards and co-branded credit cards are great options for everyone. Using a credit card comes with lots of offers.
Standard credit card: this is a credit card with no rewards. Using the card has no reward. They are very easy to use. The cards are used in making purchases and balancing up again when deposit is made on the card. The card comes with monthly charges. And, the card must be loaded up before the limited date lapses or else, late payment charges will be charged to the cardholder.
Balance credit card: this card comes with a cheap introductory rate on balance transfer. It allows customers to transfer the balance on the credit card to another card while charging a low 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 cards: this card comes with no spending limit thus, allowing the cardholder to spend as they wish. It terms include that all balances be paid in full at the end of the month. Failure to pay up all balances at the end of the month comes with penalty which could be card cancellation, restrictions, or a fee.
Secured and Unsecured credit card: The secured credit cards is for those people free of credit history. The card comes with a security deposit. Also, the card spending limit is the same as the amount of fund deposit in it. And the unsecured credit cards are for those with good credit. This type of card is preferred by most people.
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.
Advantages of using a credit card
It is very easy to carry in pocket or purse than cash
It reduces spending limit
It comes with rewards
They can be used in all currency
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 writer on credit card programs and has multiple views and opinions, multiple publishes at CNN and new resources on co-branded credit cards.. This article, Credit Cards: What Are The Various Types Of Credit Cards And Their Uses? is released under a creative commons attribution license.
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