Credit Card Types And How To Know The Best For You
Choosing the right credit card is a decision that’s more important and difficult to make than most people think.
With the right credit card, you’ll be able to maximize your card benefits without getting into debt.
Credit Card Types – Which One Suits You Best?
Low Interest Credit Card – If you’re interested in having a credit card only so you can pay for emergency expenses when you run out of cash, this is the best type of card for you.
Reward Credit Card – Every time you swipe your credit card, you get to enjoy an equivalent number of points depending on how much you’ve spent.
The points you’ve accumulated can later be on exchanged for various prizes.
Airline Miles Credit Card – This is a type of reward credit card that offers only airline miles as rewards. When you use this credit card to purchase your plane fare, you’ll be able to enjoy reward miles.
Later on, you’ll be able to use them and get discounted plane fare or fly for free even! The same rule applies for gas credit cards.
Student Credit Card – Credit card companies have lately been designing credit card offers exclusively for students.
Although accompanied with higher interest rates, these cards often have funky designs and offer special reward programs developed primarily to provide maximum enjoyment for students.
Proof of schooling is often required. It helps if you’re enrolled in an accredited school and you’ve got great grades.
Secured Credit Card – If you’ve got bad credit, there’s still a chance for you to own a credit card…but only if you’re okay with having a secured one.
This type of credit card requires you to make a deposit on your bank account and serves as collateral in the event that you fail to pay off your credit card debt. Your credit card limit may equal or be more than the amount you’ve deposited.
Prepaid Credit Card – This isn’t a credit card per se, but it generally works like one. The limit of this card will depend on how much you’ve deposited in its account.
You can’t spend more than what you’ve deposited. Its main difference with a secured credit card is that secured credit cards can have greater card limits beyond the value of its deposit.
Business Credit Card – This works just like any other conventional credit card only with a few additional perks that make it extremely suitable for business use.
A business credit card can automatically separate personal expenses from business expenditures, facilitating monthly tallies for your taxes.
It can also provide expense reports for your business, special rewards for your business, and allow you to provide supplementary cards for your employees. You can also choose to modify the credit limit of your employees if necessary.
Home-Secured Credit Card – This works like a secured credit card, but only this time you’re using your home as collateral. If you don’t get to pay off your credit card debt, you know what will happen to your home, don’t you?
Charity Credit Card – Think of it as shopping for a cause. Every time you purchase something using your credit card,
a small amount of your money will be donated to the charity being sponsored by the credit card company. This is a great way to salve your conscience if you feel guilty about your materialistic tendencies.
Different Types Of Credit Cards
Deciding on a card that suits your requirements is considered a wise decision. There are different types of credit card that exist today.
Some are better for individual users while others are geared towards small businesses. Let us find out what types of credit cards are there? And what different features they offer?
1. Business Credit Cards
As the name suggests a business credit card targets small business. This helps an individual to keep business and personal spending separate.
The business credit card offer what an individual’s credit card can not. The business credit card may offer some incentives, economy and rewards to the businesses which possibly will facilitate the business beyond what simple cash could achieve.
Money management is essential for running a business; business credit cards may offer a money management service which could help keep your expenses in check.
To get higher credit limit, you could get your employees credit cards for travelling and other things. Through this they may get higher credit limit than they normally would have.
2. Student Credit Card
Many financial institutions or banks offer credit cards to students. Although students may not get the same privileges as a corporate employee or a business gets but it still works for a student.
This card may have some credit limits so to keep the students spending in check. Even then some students spend too much and at the end of the month find themselves.
in deep trouble when they receive their monthly spending slip which also includes the interest rate. So it is recommended, that student should keep their credit card spending in strict check.
3. Prepaid Debit Cards
Prepaid debit cards are physically similar to the credit cards and they work somewhat similar but they have various different features and functions.
A debit card is unlike credit card in the sense that you can spend only a limited amount of money. One can get a debit card from the bank in which he already has an account.
Getting a debit card is relatively easier than a credit card. The spending through debit cards is dependent upon the money you have in your debit card issuing bank account.
This card is recommended for those people who are not ready to take up the responsibilities that come along with a credit card, they are bad money mangers and as soon as they get a credit card they find themselves in a pile of debt.
4. Credit Cards for Bad Credit
To get a credit card, you must show the bank you credit history. But it is possible even with bad credit to get a credit card.
The difference may be that you will have to pay a lot more interest and will get a limited credit. Once you have established you credit line history, you may get an opportunity to acquire a credit card.
5. Cash Back Credit Cards
Nowadays many bank offer cash back incentives to the customers for using their credit cards. Depending on how much balance you have and how many times you use their credit card, you can earn cash back for your purchases.
Credit card offer
So many credit card offers, what to do?
Just browse through the daily newspaper and you will be overwhelmed by the number of credit card offers advertised.
Move around the town and you will find credit card offers being advertised everywhere. Same is the case is with television which seems to host a number of credit card offers too.
So, the credit card offers are there everywhere. Why are there so many credit card offers? Well, quite simply because credit card business is a highly profitable business for the credit card suppliers.
In this situation, when there is no dearth of credit card offers, which is the best credit card offer?
There is nothing like a best credit card offer, really. A better question to ask would be – ‘Which credit card offer is the best for me?’
The spending habits of one person are different from that of another person. Their living styles vary and hence their needs vary too.
So for deciding on which credit card offer is best for you, you need to evaluate your needs vis-à-vis your lifestyle and your spending habits (and not go just by the recommendation of someone).
For example, if you frequently travel by air, a co-branded airline credit card might be more suited to you than the general purpose one.
These airline credit cards offer discounts, rebates and other kind of rewards when the credit card is used for making payments (the rewards are even higher when these credit cards are used for paying for the airline tickets or other airline products).
Similarly, if you have a favourite retail store where you do a lot of your shopping, it would be beneficial to check if the retailer is a credit card supplier too and if there is a credit card offer that suits you.
A lot of big retail chains do offer co-branded credit cards to their customers and these credit cards offer rebates/discounts etc when they are used for making payments at the retail store.
As such, you get reward points for making payments at any place but the rewards are higher on the payments made at retail store.
On similar lines, we have credit cards for gas stations and grocery stores too, which you can opt for if you have a favourite gas station or a favourite grocery store where you shop a lot.
So, if you look around, you will find a lot of lucrative credit card offers. However, this doesn’t mean that you enrol for all the credit card offers.
You need to first evaluate your needs and rank them. Then you need to evaluate what all credit card offers suit your needs.
And finally you can make your choice and go for a credit card offer that covers most of your needs and gives maximum benefits.
How To Deal With Credit Card Debt: All About Credit Card Consolidation
It is a fact that handling too many things at the same time can be very confusing, tiring and sometimes, can be very dangerous.
Everything from work, relationships, or family can be very difficult to handle at the same time. It literally takes away your focus and often results in making you less efficient.
In credit cards, having too much of it is very dangerous. It is found that an average person carries about seven credit cards and all of which are actively being used. Managing these much credit cards can be a very hard task to do.
For example, if you actively use all of your credit cards, it can be very hard for you to keep track of all the credit card expenses you make.
You should be aware on how often you use each of the cards and also the varying interest rate of each credit card.
Most people realize that it is very important to keep track of all the credit card expenses a little too late. People often go into a considerable amount of debt without even knowing it.
It is a fact that credit cards are one of the most useful things you can have and can be a very convenient tool in emergencies. However, you need to know that the possibility of getting into debt when you use a credit card is very real.
When you go into a considerable amount of debt in credit cards, there are solutions that you can do to pay it all off. One example is to do credit card consolidation.
Credit card consolidation is basically transferring all the debts you incurred in your other credit cards and pay it off through a single credit card with a low interest rate.
Credit card consolidation can relatively give you a lot of advantages when it comes to paying off your other credit card debt.
-Payment Manageability – Since you will be paying your other credit card debt with a single credit card, this will help you keep track of your payment bills in a much more effective way. Also, this tends to decrease stress and worries than receiving a series of bills.
-Lower Interest Rates – Different credit cards means different interest rates. By transferring your other credit card debts into a single .
credit card with the lowest interest rate, you can be sure that you can stop accumulating more debt through higher interest rates from other credit cards.
To start consolidating your credit card debt, you first need to look and compare the interest rates of your credit cards.
If it is the same, you don’t need to consolidate your credit card debt. However, if you found a credit card with a lower interest rate, you can consolidate your credit card debt into the credit card with the lowest interest rate.
The best solution to all of this is not getting into debt at all. Getting into debt can be a very frustrating and unpleasant experience.
Always remember that credit cards should only be used for emergencies. It should be used only when you need to use it and not when you want to use it.
If you use your credit card to pay for utility bills, for food and other primary needs, you may need more than credit card consolidation to handle a credit card debt.
If you do get in debt however, you can always consider credit card consolidation as a way to pay it all off without worrying too much.
Instant Credit Card Approval
Instant credit card approval is a trendy new fashion amongst credit card companies, particularly credit card companies that search for clients online.
The benefit of enrolling in an instant approval credit card program online is that you know within minutes whether or not you have been approved for a credit card.
Instant credit card approval companies also rarely turn customers down. However, based on your unique credit history, they may adjust the interest rate for your card.
What You Should Know
When it comes to enrolling in an instant approval credit card program online, there are some basic pieces of information that you should know.
To begin with, it is important that you are aware that whatever information you give the instant approval credit card company will be kept on their records for an undisclosed amount of time.
This information includes your social security number, address, and other pertinent information about you. These companies have a reputation for selling this information to outside parties without your knowledge.
Also, any information that you put online will possibly threaten your privacy. Therefore, many people opt to apply for an instant approval credit card via phone instead of online.
About Your Credit Rate
Your credit history and credit score will directly effect the credit rate that you get with your instant approval credit card.
Following a brief background check, you will receive the verdict regarding your credit rate, so you will not have to waste a lot of time hoping that you are approved.
You should also be aware that every time you open and close a credit card account, your credit score is negatively effected.
Therefore, if you open an instant approval credit card, it is a good idea for you to stick with the company for a relatively long amount of time.
Beware of Scams
Email scams are popular ways for illegitimate instant approval credit card companies to get information about you and rope you into a credit card with an excessively high interest rate and annual fees.
Therefore, before you commit to any one company, it is important that you perform ample research into the services that the company can provide.
Find out if they have a history of treating clients well or not. The more you research, the more you will protect yourself and your credit score.
Instant credit card approvals are satisfying ways to know that you can receive a credit card. By applying for an instant approval credit card online,
you are in a good position to get almost instantaneous information about your credit score and about how credit card companies perceive you.
While it is not advised that you apply to too many instant credit card approval sites, applying to just a few can be a beneficial way of obtaining information about yourself.
In the end, if you want to enroll in a credit card company that will be good for you in the long-term, do your research into individual companies.
Most companies also offer additional incentives that you may find very attractive. Now get out there and shop!
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