Different Types of Credit Cards and Features
The more credit card companies appear on the market, the more credit cards you have to choose from. Although they offer a huge range of different deals, you need to look for the one and only that will work best for you. Knowing the features and types of cards available will help you to choose the right one for your needs. Let’s now consider some major types of credit cards.
Types of Credit Cards
The newest cards to enter the market are the so-called low interest and 0% interest credit cards. If you are an American citizen, you’ve almost certainly already heard about these particular types of credit cards.
Basically they operate with a considerably lower interest rate compared to the older ones you have probably used so far. What’s more, the majority of these cards give you the opportunity of relocating your balance from a higher interest rate card at a very low interest rate, sometimes even 0%, for a given period of time. This can be extremely useful, especially if you are in desperate need of saving money to settle your account.
In the past years, the business of credits cards has become so profitable, that most corporations have introduced such means of payment in their daily operations. For example, airline companies now give credit cards to regular customers with flyer miles awarded based on your balance and expenditures.
Reward Points and Cash Back Credit Cards
Another increasingly popular trend is the introduction of reward points and cash back credit cards. In such a highly competitive environment, card companies have come up with special incentives for using their cards to help increase business. After having accumulated a certain amount of points, you will start to receive the promised rewards such as appliances, trips, clothes, and more. Therefore, if you are a regular user, make sure to check what your company’s reward program offers.
Instant Approval Credit Cards
Another type of credit card is the instant approval card for which you can apply again by mail or even by e-mail in some cases. As their name suggests, through these cards you will be able to receive instant approval on your application after a quick check is conducted by the credit card company. For other cards, even two weeks may be required to process your application. However, a fast response concerning your application doesn’t necessarily mean that you will quickly receive the requested credit. Some companies may give you a provisional card number to enable you to begin charging, while others may be more cautious when it comes to granting you any sort of instant credit.
Making the Choice
With such a huge amount of choices, it is always a good idea to conduct a little research before you jump to a final conclusion. Base your considerations on what your needs truly are, but do not apply for too many, as each credit check will appear in your credit score.
Related Articles:
Learn more about credit cards and your credit score with these related articles:
All about Credit Cards … a series of articles on choosing credit cards, how to evaluate them and where to get them, quickly and easily!
Your Credit … your ratings, scores and protecting your credit.