There are more than hundreds of types of credit cards across the several card issuers. But there are a few types of cards which revolve around the market and are the premium ones. Here is a list of different types of credit cards you can opt for: –
- Standard credit card – Also known as plain vanilla, these offer no rewards or frills at all. They are uncomplicated and easy to use. Credit cards usually have a minimum payment amount which you need to pay by a certain date. You must avoid late payments otherwise, it will show a bad credit report plus you will face penalties.
- Balance transfer – These credit cards come with the facility of transferring balances. You will have low introductory rates on the balance transfers for a certain time. You will often get promotional interest rates like 0%. But for such cards, you will need a good credit score to qualify.
- Reward cards – You will get several rewards like points, travel perks, cashback offers and more on such cards. These can be redeemed for merchandise or cash. If you are a frequent shopper or traveler, a reward credit card is perfect for you.
- Student cards– This card is specially designed for college students who have no or little credit history. Student credit cards are usually a good way to build your credit score and first-time applicants get approved quicker. You can get additional perks with a student credit card.
- Prepaid cards–Prepaid credit cards usually require the cardholders to load money on the card beforehand in order to use the card. The purchases are taken from the balance of the card, and the spending limit will not renew until you load the card with money. This is a good way to spend less with your credit card. Prepaid cards do not have any minimum payments to be made during due dates. These are basically like debit cards only. They need to have money in it put by you for use. If you are new to credit cards or have had a bad history misusing it, you should definitely opt for a prepaid card.
- Secured cards – This is for those without any credit history or a damaged one. You need to put a security deposit for the card, and there is a credit limit which is equal to the deposit made. It can be more in a few cases, but it is mostly the amount you deposit. For example, if you give a security deposit of $1000, your limit will be the same.
- Business credit cards – These are designed mainly for business use and provide owners of businesses to keep their transaction separate from private ones easily. You can find standard business cards in this category which is typically what most business owners opt for.
These are just a few types of credit cards. If you are planning to get one, go through the various types to decide which one fits you the best and the one you are eligible for.