Credit cards nowadays are fast becoming the most effective means of financial transaction. The convenience and time saving benefits along with the safety and reliability they offer make them the popular choice. The wide network of shops, malls and retail outlets encourage a vast populace to use them extensively. As the consumer base for credit cards is expanding rapidly, more and more people are getting overwhelmed by the diversity of offers. This article takes a look at the popular credit card prevailing in the market and their features.
Balance transfer credit cards
Allow customers to transfer a higher interest credit card balance onto a credit card with a lower interest rate.The terms of balance transfer credit cards vary greatly with credit card issuer and offer. It will be better to know these terms before deciding on a balance transfer credit card.
Low interest credit cards
These cards offer a either a low introductory APR. It can change to high rates after some time. The exact details can be found in the credit card offer. People generally take advantage of the low introductory APR's and make large purchases.
These cards usually give the customer incentives or rebates and even cashback for the amount they spend by their credit cards. There are various types of reward cards. Some of the most popular are:
Airline reward cards
These give incentives towards purchases on air travel, like frequent flyer or airline miles credits. The incentives can be points based or cash based which can be redeemed towards further air travel or as provided in the credit card offer. The exact details about the offer can be obtained from the terms and conditions of respective credit card.
Cash back credit cards
You get cash rewards for using these credit cards. The rates at which companies give cashback vary. It is a very good credit card for those who follow their repayment schedule religiously. If used properly it can return a significant amout of money back to the customer.
Gas reward credit cards
These give incentives towards purchases on fuel for automobiles and other vehicles. The incentives can be points based or cashbased which can be redeemed towards as described in the credit card offer.
Bad credit or credit Repair cards
These are specifically designed for those with bad credit. The interest rates for these cards are high but there are a few other options open for those with poor credit. Following the repayment schedule will help the customer in reviving his/ her credit ratings.
Secured credit cards
These credit cards require collateral for approval. Available for those with poor credit these cards offer an option to rebuild credit history. The collteral can be anything ranging from property, jewellery, car, or any other valuable good acceptable with the credit card issuer. These cards come with extra fees and strict repayment options.
Prepaid or stored value credit cards
The entire amount stored in the credit card has to be paid in advance to the credit card company. These cards are also known as debit cards. These types of credit cards do not have any finance charges and help avoid the credit card debt because you can only spend what youu have. These cards are a purfect budgeting tool.
Business credit cards
These are cards tailored to business credit needs. Coming with special business incentives like higher credit limits, special business rewards, and additional cards for employees they help streamline the business processes. The offer and promotion varies with every credit card and issuer.
Student credit cards
These credit cards are usually the first step towards building a credit history. Tailored specifically to the needs of the students these cards generally require no cerdit history. Helpin students with the much needed finance, these cards come with a low interest rate and easy repayment options.
It is strongly advised that a customer should first discuss his financial needs with a consultant and thoroughly acquaint himself of all the terms and conditions before getting any credit card. o matter what type of credit card you choose, be sure to discuss your specific financial needs with your financial advisor or accountant before applying for any credit card.
Matthew Fisher, providing the best credit card advice and offers [http://www.card-city.com/Chase.html] is a freelance journalist having expertise in credit cards and finance. His lucid and informative articles help readers gain insight into the concerned matter and take better decisions.