Different Types Of Credit Cards
Secured Credit Card
A secured credit card is similar to a prepaid credit card since the funds you are using are actually yours and not the issuer of the credit card. Generally people who apply for secured credit cards or prepaid credit cards are people with poor credit or unemployed.
Unsecured Credit Cards
Unsecured Credit Cards are issued to individuals with good to excellent credit rating. Credit ratings depend on certain criteria, such as one's ability to repay loans. These criteria include payment history, employment history, and financial stability.
Business Credit Card
Business credit cards are very popular for small business owners because of the many benefits they offer. Benefits includes 0% Intro APR on balance transfers, no annual fees, high credit limit, low interest rates, cash rewards, bonus miles, free online account management to choosing card design, etc.
0% Intro APR Credit Card or Balance Transfer Credit Card
0% Intro APR Credit Card or Balance Transfer Credit Card gives you the benefit of using this credit card without making any interest payment on the principal for a stated period of time. This credit card is marketed to individuals with good credit rating who want to transfer balance from a high interest credit card to a 0% intro APR credit card.
Cash Rewards or Cash Back Credit Card
Cash Rewards or Cash Back Credit Card earns a percentage on purchases made. This reward or cash back is credited to your account.
Debit Card takes the place of carrying a checkbook or cash. This card is used like a credit card with certain limitations, such as not being able to rent a car. Purchase transactions are contingent upon having enough funds in your checking or savings account to cover the purchase. Verification of funds requires entering your Personal Identification Number (PIN) at a point-of-sale terminal.
Low interest credit card
Low interest credit card saves you money. Having a good credit rating qualifies you for some of the best low APR credit card offers.
Travel Rewards Credit Card
Travel Rewards Credit Card benefits may include travel accident insurance, free rental car collision/loss damage insurance, rebates on gasoline purchases, frequent flyer points or bonus miles towards airline flights, free quarterly and annual account summaries.
Student Credit Card
It gives the student the opportunity to establish credit at an early age and to start asserting their independence. It comes in handy in case of an emergency, it is less trouble and safer to carry a student credit card than to carry cash.
education article by David Hall
The Author: David
Reprinted from ArticleCity.com
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