Wednesday, October 30, 2013
Types of Credit Cards
Amid stiff competitions, credit card providers are coming up with different types of cards targeting different categories of people with different features and offering target specific benefits. Besides the standard credit cards for general public, there are student credit cards, business credit cards, store credit cards, airline credit cards, gas credit cards, teen credit cards, etc. These cards are specially meant for the targeted group of people.Standard credit cards: Almost all the credit card providers offer standard credit card meant for general public. They are unsecured credit cards that are available to people without any guarantee, security or mortgage from the users. The credit card companies generally see the credit rating of the applicant before providing the credit cards. In this category, you can get low interest credit cards and credit cards with reward points.Business credit cards: Many card providers offer credit cards for small businesses. You should know the use of business credit card if you want apply for one. Having a business credit card can be a huge help to the company in a great many ways. However, if you are not careful, it could also have its disadvantages as well. You should understand what the credit card company is offering, how you can take advantage of it. Business credit card facilitates various business transactions that will make your life easy and comfortable.Student credit cards: Students credit cards are meant for college and university students. Most card providers ask eligibility criteria for the applicants of student credit card that you should be 18 years old and you should be enrolled in a college or a university. Credit card companies offer student-specific benefits in the purchases with the student credit cards. The card providers also facilitate students to pay college fees with the card. There are many other benefits you can avail by using the student credit cards.Gas credit card: With this card, you can purchase gas at the pump or at the convenience store. Some gas card provides reward with the purchase of gas with card. You can earn cash back rewards and rebates in purchases.Travel credit cards: One such card available is airline miles reward credit card. It is offered in partnership with a credit card company and an airline company. This card allows you to earn points or miles for every dollar spent with the card. After earning a certain number of points, you can get ticket for air travel with the applicable airline. Airline miles reward credit cards also provide more travel-related benefits then other credit cards, like a higher amount of travel insurance coverage.Balance transfer credit card: You can save hundreds of dollars with the balance transfer credit cards. Some credit card offer 0% introductory APRs for six to 12 months in every transactions you make. So you can transfer your balance from a loan which has high interest rate to a card which offers 0% APRs.Credit cards for bad credit: This is a special type of credit card for people with bad credit. The card companies put some restrictions not typically found on other types of cards. The credit card limit is lower in such cards. Some companies ask for some type of security from the applicant before providing the credit card. They may ask you to maintain a savings or some other type of account that will cover the expenses on the credit card.Besides, credit card companies are offering cash reward cards to attract the prospective customers. They offer cash rewards in every purchases made with the card, discounts in the selected products purchases from some partnered companies or selected stores. Credit card companies are also providing store specific card meant for purchases in the select general or convenience store only.