There are several types of credit cards available to consumers today. These include rewards credit card, unsecured cards, as well as store cards. You also have options for those with bad credit. Learn which type of credit card is best for you. There are a variety of perks for each type of card. Be sure to carefully read the terms and condition of your new card in order to get the most benefit.
Rewards credit card
The most popular way to get cash back on your purchases with rewards credit card is through the use of these cards. These cards offer rewards in the form cash back, points and travel miles. As long as your balance is paid each month, you can earn a substantial amount back. You can also get generous welcome bonuses with many other features on reward credit cards. You also get cost-saving purchasing protections. These cards typically have higher interest rate than other types. To determine which rewards card is right for you, it's important to understand your financial situation and spending habits.
Rewards credit cards are best suited for consumers with excellent to good credit. However, they come with annual fees, which can be expensive and may negate any rewards you earn. It is important that you choose a rewards card that suits your spending habits while not being too expensive.
Unsecured Credit Cards
Unsecured credit cards offer greater flexibility and higher spending limits than secured cards. These cards don't require a security deposit and have credit limits up to thousands of dollars. A steady income and clean credit score are required to get an unsecured debit card. You will also have to pay the bill in full each billing cycle, otherwise you will incur interest.
You may be able to qualify for an unsecured credit card with a fair or poor credit score. Your credit score will vary depending on which credit-scoring system you use. A fair credit score could be between 580-669. However, it is not impossible to raise your credit score to a good level by responsibly using your credit.
There are many types and options of unsecured cards. There are three types of unsecured credit cards: cash back cards, student cards, and travel reward cards. An unsecured card could work for you depending upon your spending habits.
Store credit cards
Credit cards for stores are revolving lines which you can use to buy at the shop. These cards can be used by customers in conjunction with banks. These cards are convenient for consumers, because you can use them anywhere that accepts credit cards.
Although store credit cards can seem appealing for building your credit, there are some downsides. The first is that they typically have low credit limits. The maximum limit you are allowed to use is usually only $300 or $500. This limit can lead to excessive spending in a single day. Store credit cards may be convenient for new credit card users but they can quickly cause credit problems.
Store credit cards have one drawback: you can only use them in the stores you have a card with. Generally, you get 5% off your purchase. You can also earn rewards dollars that will make it easier to purchase future products. Some store credit cards are also part of payment networks such as Visa and Mastercard.