|
 |
|
A Quick Look at Different Types of Credit Cards |
 |
by: Debbie Dragon
Plastic today is a way of life for most people. After all sliding your card and signing your name is a quick and easy way to make a purchase. As long as you shop responsibly and pay your bill each month, shopping with a credit card is certainly a convenient way to shop. The question so often asked by credit card consumers is what card is right for me? There certainly are multiple cards, all advertising great features. Here is a look at some of the most common card types.
Balance Transfer Cards
Balance transfer cards are ideal for people who have a high interest credit card that has an unpaid balance. By transferring your balance onto a card with a lower interest rate you will be saving yourself money in interest fees. When choosing a low interest credit card be sure to compare interest rates on several different offers. Check to see if the rate is a promotional rate, only for a certain time period, if it is a variable rate or a low fixed rate. While the promotional rate can seem tempting, be careful. If you are certain that you can pay off the balance during the promotional time period then go for it. If not, usually your best bet is the low, fixed rate option. When selecting a balance transfer card also take a look at the transfer fee. Most cards do charge a percentage of the amount you will be transferring. See what it is and make sure it will be worth it in the end.
Reward Credit Cards
Reward credit cards are very popular and for good reason. They either give you cash back or some other type of freebie for using your card to make purchases. You can get a card that will reward you in everything from dining certificates to free air travel. With these cards watch for annual fees as some, not all, rewards cards charge one. Also watch for limits on the number of awards you can earn on the card. Many have set monthly or yearly limits. Finally, sometimes these cards do carry higher interest rates, so if you do not pay off your card balance each month the rewards you earn may not be worth it.
Student Cards
If you are a college student looking to begin to build your credit, signing up for a student credit card is a great way to get started. Many companies offer special student cards that require no credit history, and since most college students don’t yet have a credit history, this is a great way to get one. Student credit cards do have low limits. Some carry special student reward programs so be sure to select one that offers rewards that interest you.
Business Cards
If you own your own business, no matter how big or small, a business credit card may be right for you. Business cards come with some great features to help you track your expenses and your spending. Most companies offer an option to get multiple cards for your employees, which helps you to keep track of their spending as well. Many business cards also offer business rewards programs, so keep that in mind as you shop around.
Other Card Benefits
No matter what type of card you opt for, there are some other benefits you may want to look for. Many cards offer purchase protection or extended warranties on items you may purchase. Others offer travel protection for while you are on the road. Finally, many cards also provide some great discounts at a number of retail merchants.If these are features that interest you, look for a card that offers them.
|
Did you find this article helpful? |
|
|
Credit Card Articles > Credit Card Education > A Quick Look at Different Types of Credit Cards
|
|
|
 |
|
