All about the different types of credit cards
Society runs on credit, and credit cards can be useful tools. Many people use them in emergencies, when cash or payment is needed right away but their pay check isn't readily available. Still others use credit in their everyday lives, to buy homes, cars and other consumer valuables. Whether you use credit only sparingly or it's a part of your everyday spending habits, this guide will help you choose the right credit card so you can save money and receive benefits on your daily spending.
Types of Credit Cards
Choosing a credit card can be tricky — there are a lot of options available and they all seem to address different needs. Start by asking yourself some questions to determine which credit card is right for you:
- What is your credit like? Many people feel that they can't apply for a credit card if they have bad credit or no credit; however, there are credit cards in place for this type of situation. Try applying for a bad credit credit card to build your credit rating up again.
- Are you a student? Student credit cards allow young people in school to build a credit history that will benefit them in later life. Also, prepaid credit cards allow students to try out credit without incurring penalties for going over their limit.
- Are you looking to cut back on your spending? Fixed rate credit cards or those with low APR allow you to save on your credit card payments every month and cut down on interest.
- Are you a business owner trying to build or establish credit? Business credit cards allow you to use a credit card for business expenses and help to build your business credit, which can be tougher than building personal credit.
The three main credit card providers are MasterCard, VISA, and American Express (AMEX). Each company offers a variety of different credit cards, so you can choose the one that's right for you.
One of the most important things when considering a credit card is to know what you're getting into. Being irresponsible with your credit can ruin your score and make it hard for you to get the things you want in the future. Always make sure that you use your credit card wisely.
Credit cards make life more convenient — learn more about the different types of cards and choose the one that's best for you.