Credit Card Types
Along with the traditional credit cards, there are other types of credit cards that are widely used. Here are some of the more popular ones.
Reward Programs – There are some credit card companies that offer rewards as an incentive to use their card. For example, every purchase made with Amazon.com yields points. When you reach 2500 points, you receive a $25.00 Amazon gift certificate.
Conversely, you may be able to obtain a credit card that offers cash rewards that yield approximately 1% of your purchases.
There are also cards that offer such rewards as electronics, hotel accommodations, airline tickets, and more. Depending upon the number of points you attain, this determines the type of reward you can select.
In addition, there are credit cards that are available in conjunction with hotels, airlines, and department stores. There are gas cards that offer points or rebates, automotive reward cards, home improvement credit cards and, of course, airline-specific credit cards that offer points towards ticket purchases such as the Frequent Flier credit card.
“Secured” Cards – If you have bad credit or have filed bankruptcy, there are credit cards called “secured” cards that require you to deposit a specific amount into the credit card company’s account. It is equivalent to a debit card, but in this case you are working your way back to reparation of credit.
Prepaid Cards – There are also credit cards that are prepaid. This allows you to charge based on the amount of money you have put into an account. Thus, there are no finance fees to worry about and it is akin to a “pay as you go” type of credit card.
Business Credit Cards – Among the other types of credit cards are business credit cards such as American Express and others. Depending upon the bank, there may be incentives and special offers applied to business owners who open up a business account credit card.
Cards for Students – There are also credit cards for students who attend colleges and universities. This enables students to begin to establish their credit history while, at the same time, keeping the credit line at an appropriate level until such time as the student has proven they can use these cards responsibly.
When applying for any type of credit card, it is important to research the APR of each credit card, and any fees that are required. Department store credit cards have the highest interest rate. But this, too, depends on the individual’s credit history and FICO score. If one has a high FICO score, it is likely an individual may be able to receive a low-interest rate card with a higher credit line.