Finding the credit card that is right for you depends a great deal on how you intend to use the card. Do you intend to pay the bill in full every month? Are you planning to carry a balance? Do you have other credit card debt to consolidate on to one card? Do you plan to use your card for everyday purchases or is it only for emergencies? Here are some things you need to help you choose the card that is appropriate for you and your spending habits.
Credit Card Types
Store Credit Card: Many retailers issue store credit cards that may only be used to purchase merchandise within that store or on that store’s website. Having a store credit card may entitle the cardholder to special discounts, promotions, and rewards programs. Generally, store credit cards carry a much higher interest rate than traditional non-retail credit cards.
Secured Credit Card: Designed for consumers who are trying to establish credit or rebuild credit, this type of card is secured by a savings account at your financial institution. The limit of the card is based on both previous credit history and the amount deposited in the account.
Basic Credit Cards: Basic credit cards allow consumers to purchase goods or services on credit. Cardholders receive one monthly bill that consolidates all of their purchases and are required to make a pre-defined minimum payment by the due date specified on the bill.
Rewards Credit Cards: These cards have the same features and functionality as the basic credit card. Additionally, cardholders earn rewards such as merchandise, cash rebates, or air miles with each use of their card.
Premier Credit Cards: Premier cards offer higher credit limits and often have additional features like product warranties, travel insurance, or emergency services. They may also offer rewards, such as cash back or frequent flyer miles.
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