There is an array of types of credit cards that exist. In fact, there is practically a credit card for everyone. No matter what you plan to use the card for or what your credit score is, you can easily find the right type of credit card for you.
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Depending on what you want from your credit card, you can choose from cards that offer all different types of rewards or credit cards with lower interest rates to help save you money.
Selecting the Right Type of Credit Card
Choosing the right type of credit card to meet your needs is a matter of analyzing why you want the credit card and how you handle money. If you want a credit card for convenience and for the rewards, you will choose one card. If your goal is to rebuild credit or help develop a business, you will select a different type of card.
Understanding credit cards and how to use them will be very valuable in helping you select the right card. Visit MyMoney.gov in order to learn about money management, how credit cards work, and how to save on credit cards.
Rewards Credit Cards
A large majority of credit cards today offer some form of rewards. There are airline credit cards, hotel credit cards, gas credit cards, dining credit cards, travel credit cards and cash back credit cards.
When you are considering rewards credit cards, it is important to carefully evaluate the credit card annual fee versus the realistic rewards that you can anticipate earning. Ideally, you should look for a card that has no fee, a relatively reasonable APR and a reward program that appeals to you personally.
There is no best rewards credit card to choose. The ideal rewards credit card for you is the one that will provide you with the most useful rewards most frequently. A travel rewards card is a poor choice for someone who doesn’t travel and has no desire to do so. However, a cash back credit card may be an excellent choice for that person. Be sure to read the fine print with all rewards cards.
Credit Cards for Those with No or Poor Credit
There are a various types of credit cards available for those who are in need of building or even repairing their credit score. The easiest and quickest way to build or rebuild credit is through the responsible use of credit.
Secured credit cards are credit cards that have the amount of the credit limit secured by a deposit in a bank account. When you ask for a higher credit limit using such types of cards, it is possible you will get it. The risk is reduced for the credit card issuer and the cardholder uses the credit card like a traditional one in order to rapidly build credit.
Prepaid and debit credit cards can often be used very much the same way as traditional credit cards. The advantage is that you are disciplined by the amount in your account or the amount you prepaid on a card. With these cards however, you are not actually managing credit, therefore, these credit card companies will not report to the credit bureaus.
For people with bad credit, the credit card of choice is often bad credit credit cards. These are actual credit cards that are not secured or prepaid. Typically, such credit cards have low credit limits and high fees, so it is very important to shop around carefully to get the best deal possible.
Specialized Credit Card Types
In addition to rewards credit cards and credit cards for those whose credit is poor, there are also other specialty credit cards available. Student credit cards are designed for those who are in school. Specialized rules concerning student credit cards have made abuse of cards by students much less prevalent.
A business credit card is one you might need if you are looking for a credit card that is solely for use in your business. Using a credit card in the running of a business can help you manage your cash flow.
Balance transfer credit cards are ideal if you have one or more credit cards in which you are carrying a balance. Their introductory APR offers give those trying to manage credit card debt a chance to pay off their bills and get back on their feet.
Selecting from the many types of credit cards on the market can be mystifying. However, understanding the different cards and the reasons why you should choose each will make your decision easier.