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 type of credit card offers a relatively low introductory rate on every balance transfer for a stipulated period. This is the card for those that wish to save money on high interest rate balance.
Reward credit card: Rewards credit cards include, travel, cashback and point. Each of this card have their benefits which are available for users to enjoy.
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: Secured credit cards are for people that do not have credit history. However, security deposit are usually placed on the card. The spending limit on the card is the same as the deposit available on the card. The unsecured credit cards on the other hand are designed for people who have a balanced credit i.e people with fair credit. It is commonly use by 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 more preferable to carry than cash
It helps to adjust one's spending
It comes with rewards
Can be used in any 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 type of credit card offers a relatively low introductory rate on every balance transfer for a stipulated period. This is the card for those that wish to save money on high interest rate balance.
Reward credit card: Rewards credit cards include, travel, cashback and point. Each of this card have their benefits which are available for users to enjoy.
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: Secured credit cards are for people that do not have credit history. However, security deposit are usually placed on the card. The spending limit on the card is the same as the deposit available on the card. The unsecured credit cards on the other hand are designed for people who have a balanced credit i.e people with fair credit. It is commonly use by 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 more preferable to carry than cash
It helps to adjust one's spending
It comes with rewards
Can be used in any 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 keen writer on credit card programs and has several views and opinions, multiple publishes at CNN and news websites on co-branded credit cards.. This article, Credit Cards: What Are The Various Types Of Credit Cards And Their Uses? is available for free reprint.
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