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Wednesday, October 08, 2014
Types of Credit Cards
A credit card is a convenient way to buy almost anything under the sun, from a purse to a travel vacation. But don't forget a credit card is not like a debit card. If you're using a credit card, you are basically borrowing money. But if it's used unwisely, you can acquire a very bad debt. To know what type of credit card suits you best, check out these common types of credit cards:
1. Zero or Low Interest Rate Credit Cards: This is recommended for people who are willing and are able to pay card debt quickly. Most providers of this type of credit card offer bargain rates on balance transfers from other credit cards. A lower rate will save you a decent amount of money on interest costs. But usually, the lower rate lasts for 6 to 9 months only, then increases, often about 14 to 16% once you make a single late payment. If you transfer a big balance but do not pay it within the grace period, you may have a higher interest rate compared to what you had at the beginning.
2. Rewards Credit Cards: This card is best for consumers who make most of their purchases using a credit card and pay their balance per month. Issuers of credit cards offer airline miles, cash back, and/or other points when you buy select items based on the money you spend. Some reward credit card, for example, offer as high as 5% cash back on certain items without annual fee. Some credit cards have high rates and annual fees without the reward benefits. Other cards have unfriendly and complicated redemption policies. So it's very important to read offers very carefully.
3. Secured Credit Card: This type of credit card is recommended for users who have gotten into some trouble with credit cards before. Using this type of card wisely will help fix or establish a bad credit rating. But as you apply you should give a deposit which usually ranges from $200-$250. Many of these cards have high rates and annual fees so read the fine print carefully.
4. Student Credit Card: This is most suitable for college students who know how to manage money responsibly. Students can acquire this type of card even if they have not built a credit rating yet. Many providers of student cards offer other benefits such as discounts on bookstores and/or cash back. But some have higher rates. It's quite easy for students who aren't that experienced at handling finances to quickly acquire unmanageable debts.
To get free legal advice on banking, credit, and finance, you can simply visit CCLS WA by following the link.
1. Zero or Low Interest Rate Credit Cards: This is recommended for people who are willing and are able to pay card debt quickly. Most providers of this type of credit card offer bargain rates on balance transfers from other credit cards. A lower rate will save you a decent amount of money on interest costs. But usually, the lower rate lasts for 6 to 9 months only, then increases, often about 14 to 16% once you make a single late payment. If you transfer a big balance but do not pay it within the grace period, you may have a higher interest rate compared to what you had at the beginning.
2. Rewards Credit Cards: This card is best for consumers who make most of their purchases using a credit card and pay their balance per month. Issuers of credit cards offer airline miles, cash back, and/or other points when you buy select items based on the money you spend. Some reward credit card, for example, offer as high as 5% cash back on certain items without annual fee. Some credit cards have high rates and annual fees without the reward benefits. Other cards have unfriendly and complicated redemption policies. So it's very important to read offers very carefully.
3. Secured Credit Card: This type of credit card is recommended for users who have gotten into some trouble with credit cards before. Using this type of card wisely will help fix or establish a bad credit rating. But as you apply you should give a deposit which usually ranges from $200-$250. Many of these cards have high rates and annual fees so read the fine print carefully.
4. Student Credit Card: This is most suitable for college students who know how to manage money responsibly. Students can acquire this type of card even if they have not built a credit rating yet. Many providers of student cards offer other benefits such as discounts on bookstores and/or cash back. But some have higher rates. It's quite easy for students who aren't that experienced at handling finances to quickly acquire unmanageable debts.
To get free legal advice on banking, credit, and finance, you can simply visit CCLS WA by following the link.
