Good credit opens a world of options; but what if you don’t have that? Finding poor credit, prepaid and secured personal and business credit cards isn’t hard. Let’s learn about the various types of credit cards available today.
The options offered by different credit cards depend on what your requirements are. You will obviously consider different aspects when planning to apply for a personal or business card. To know which one is the best for you, let’s go over some details in relation to the different types of cards.
Business Corporate Credit Cards
Such a card gives business owners the convenience of separating business purchases from personal expenditures. It may also involve unique rewards and opportunities for savings that are not typically offered for individual card owners.
Effective management of your company’s finances is simply critical to successfully run any kind of business. Therefore, having a clear picture of your money movements is essential. Moreover, you may even request extra cards for those employees who need to cover various expenses. Besides this, you may have access to a more convenient credit limit compared to what you would get as an individual cardholder.
If you have a good business foundation with established credit you can qualify for the best credit card rates; if not, consider a secured business credit card to help build your business credit rating.
Student Credit Cards
Although student cards have usually lower credit limits and less incentives to help keep their spending in check, you should still take note. The average credit balance of most college students ranges between $3,000 and $7,000, when coupled with the interest rates, can represent a real problem when attempting to pay it back.
Prepaid Credit Cards (Debit Cards)
Prepaid credit cards (also known as debit cards) have significantly grown in popularity in the past few years. The only similarity with traditional credit cards is the way they work during the purchase itself.
In fact, in the case of prepaid debit cards, you have to pay in advance and determine the credit limit by placing money into the debit card itself. The sum of money you place into the debit card account is equal to the credit limit you wish to obtain on the card. Prepaid debit cards are a useful means of having access to a credit card without being charged more than you will be able to pay back.
Credit Cards For People With Bad Credit
Even in the instance of bad credit, there are chances of receiving a credit card. Such cards usually involve various restrictions that you may not find in the case of other cards. Some of these restrictions may, however, be erased once you have demonstrated yourself as a diligent user. The credit limit is usually lower and the interest rate higher. Some issuing companies will offer a secured credit card that is guaranteed by some kind of savings account to cover the costs of the credit card.
Cash Back Cards
Nowadays, most cards also give you cash back advantages if you use them. This means that you can even receive cash back for your purchases on the basis of your balance and usage habits. Certain organizations give 1% off the balance while others, like Sears, offer customers cash off payments carried out in their own stores. If you are planning to use your card regularly it is important to choose one with an appealing cash incentive.
Learn more about credit cards and your credit score with these related articles:
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