5 Main Types of Credit Cards and Their Features

Written by Posted On Thursday, 23 May 2019 11:19

Credit cards are one of the facts of our lives. Almost all of us have at least one or are thinking of having one. But most of us are not aware of the different types of credit cards available. If we have the knowledge of different types of credit cards in the market, it will help us to increase our options to pick out the most suitable card for our needs and situation. However, according to getmyoffer capitalone com, these 5 different types of credit cards are worth reading so that you can choose one from them.

 

1.Standard “Plain-Vanilla” Credit Cards
Standard credit cards are known as “plain-vanilla” as they offer no rewards or frills. They are comparatively very easy to understand. If you want a very simple card and you’re not interested in earning rewards, then you should choose this type of credit card.
You can have a revolving balance up to a certain credit limit with the standard credit card. The credit is used up while making a purchase. And when you make a payment, the more credit gets available. It applies a finance charge at the end of each month to outstanding balances. You will have to pay a minimum payment that must have to be paid by a certain date. It helps you to avoid late-payment penalties.

2.Balance Transfer Credit Cards
A balance transfer credit card offers a low introductory rate for a certain period on balance transfers. It is a good way to go if you like to save money on a high-interest rate balance on an existing card. The interest rates of balance transfer vary.

3.Student Credit Cards
If you are a college student, then these cards are specially designed for you. You’re a first-time credit card applicant and you would have an easier time to get approved for the card than another type of credit card.
These cards come with additional perks like a low-interest rate or rewards on balance transfers. Though these aren’t the most important features for you. To be approved for a student credit card, you need to be enrolled at an accredited four-year university.

4.Secured Credit Cards
If you don’t have a credit story or you have damaged your credit status, these credit cards are an option for you. These cards need a security deposit to be placed on the card. The credit limit is typically equal to the amount of the deposit made on the card. You have to make monthly payments on your secured credit card balance.

5.Business Credits Cards
If you are a businessman, no other credit cards can be compared this for you. These cards will provide you an easy method of keeping your business and personal transactions separate. Your personal history is considered also in a business credit card. The credit card issuer needs to hold an individual accountable for your credit card balance.

 

Majority percent of the Americans own at least one credit card. There is no tough job to get one. The difficult part is paying back the bills in full. Our expenses increase month by month but our income increases only year after year. Thus, you have to understand what card means what and choose the right one from them.

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