Credit Card Types And How To Know The Best For You By Mario Churchill At Isnare.com Ezine Articles

Choosing the right credit card is a decision that’s more important and difficult to make than most people think. With the right credit card, you’ll be able to maximize your card benefits without getting into debt.

Credit Card Types – Which One Suits You Best?

Low Interest Credit Card – If you’re interested in having a credit card only so you can pay for emergency expenses when you run out of cash, this is the best type of card for you.

Reward Credit Card – Every time you swipe your credit card, you get to enjoy an equivalent number of points depending on how much you’ve spent. The points you’ve accumulated can later be on exchanged for various prizes.

Airline Miles Credit Card – This is a type of reward credit card that offers only airline miles as rewards. When you use this credit card to purchase your plane fare, you’ll be able to enjoy reward miles. Later on, you’ll be able to use them and get discounted plane fare or fly for free even! The same rule applies for gas credit cards.

Student Credit Card – Credit card companies have lately been designing credit card offers exclusively for students. Although accompanied with higher interest rates, these cards often have funky designs and offer special reward programs developed primarily to provide maximum enjoyment for students. Proof of schooling is often required. It helps if you’re enrolled in an accredited school and you’ve got great grades.

Secured Credit Card – If you’ve got bad credit, there’s still a chance for you to own a credit card…but only if you’re okay with having a secured one. This type of credit card requires you to make a deposit on your bank account and serves as collateral in the event that you fail to pay off your credit card debt. Your credit card limit may equal or be more than the amount you’ve deposited.

Prepaid Credit Card – This isn’t a credit card per se, but it generally works like one. The limit of this card will depend on how much you’ve deposited in its account. You can’t spend more than what you’ve deposited. Its main difference with a secured credit card is that secured credit cards can have greater card limits beyond the value of its deposit.

Business Credit Card – This works just like any other conventional credit card only with a few additional perks that make it extremely suitable for business use. A business credit card can automatically separate personal expenses from business expenditures, facilitating monthly tallies for your taxes. It can also provide expense reports for your business, special rewards for your business, and allow you to provide supplementary cards for your employees. You can also choose to modify the credit limit of your employees if necessary.

Home-Secured Credit Card – This works like a secured credit card, but only this time you’re using your home as collateral. If you don’t get to pay off your credit card debt, you know what will happen to your home, don’t you?

Charity Credit Card – Think of it as shopping for a cause. Every time you purchase something using your credit card, a small amount of your money will be donated to the charity being sponsored by the credit card company. This is a great way to salve your conscience if you feel guilty about your materialistic tendencies.

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