5 Types of Credit Cards to Choose Depending on Your Needs

There are various kinds of credit cards available for different purposes. They come with different features and benefits, which is why it is important for a person looking to get a credit card to identify what he needs it for first.

Most credit cards are classified based on features and benefits. The Airline-specific cards, in particular, offer rewards for frequent air travelers. On the other hand, a balance transfer card allows the owner to transfer credits from other cards at low-interest rates. It also offers users lower interest rates to transfer credits from other cards.

Photo by Bruce Mars from Pexels

That said, it might be best to check before applying. If you feel inclined to do so, here’s what you should consider when choosing from among the different types of credit cards available:

  • Standard credit card.

Two basic cards are available Balance Transfer and Low Interest. The first one allows transferring credits to other cards without any interest, while the latter offers moderate interest rates for the first year.

Earned points and incentives for grocery and apparel shopping? Possibly, this could be everyone’s favorite. The card depends on the loyalty point system of many supermarkets. Moreover, cardholders get assured bonuses while exchanging points with promos. Credit cards under this scheme are Cash Back and General Reward Points.

  • Airline mile credit card.

This exclusively is for frequent flyers. Airline miles and other bonuses are received while using this card frequently. Using this card frequently helps you earn airline miles and other bonuses. Regular users receive Airline miles and other bonuses. The two credit cards available are Airline-specific and General Airline Miles.

  • Credit repair card.

The two crummy cards are Secured and Prepaid credit cards. People with lower credit scores use the Secured credit card and a cash deposit is required as collateral. Prepaid credit card, however, needs a top-up amount before using it.

  • Specialty credit card.

Business credit and student credit are the two specialty cards. It doesn’t matter whether you are a student or a businessman. Similar to the Standard credit cards, moreover, give extra benefits to the users.

Leave a Comment