5 Basic Credit Card Types

basic credit card types rewards card interest rates limits

Whether you are in debt or you are just looking for a way to build your credit there is a good chance that you have considered a credit card. In today’s time, there is a good chance that you own some kind of debt or bank card. Well, credit cards can be both good and bad. Some of this has to do with the fact that people misuse them. Some of this has to do with the fact that people don’t really know much about credit cards. Just blindly signing up for a credit card will not offer the type of benefits that you are looking for. In order to better understand credit cards, you need to know what types are available to you and how they work. 

5 Basic Credit Card Types To Choose From

The Rewards Credit Cards 

The first thing that most individuals need to really understand is that some cards are actually meant for spending while others are better for building credit. Just look at the rewards cards. This specific credit card was really meant for individuals to pay their bills with. This is because the card basically means what the name suggests. Individuals that purchase items or make payments with this card will receive some type of reward. This can come in the form of air miles, gift certificates, or even free hotel stays. Most of these cards will be paid out at a flat rate of one to two percent. This would be the perfect credit card for anyone that is looking to save and plan for their next trip to Malaysia. If you use their card enough, you could literally cover your airfare. 

Low-Interest Credit Cards 

Low-interest cards are sometimes referred to as low ARP cards. These are probably without a doubt one of the best cards to use to cover monthly expenses. This pretty much means that your interest rate is going to be lower when compared to other cards, regardless of the amount owed. This might be a good option for any individual that will have a higher monthly balanced. 

A high monthly balanced with another type of card might mean huge interest rates, whereas this card can provide some financial relief from such debts. Anyone looking to apply for a card like this or browse for others can visit https://www.ocbc.com.my/personal-banking/Cards/index.html

Balance Transfer Credit Cards 

Balance transfer credit cards can be somewhat confusing because they are really only intended for individuals that already have a lot of incurred debt. This card is so good for indebted individuals because it provides a little bit of financial backing. As aforementioned, if you have a big monthly balance, you are going to pay more interest rates. However, with a balance transfer credit card, you can skip those high-interest rates. The card literally allows people in debt to shift their best from their current card to their new card. Sometimes newer balance cards like this will give you anywhere from 6 to 21 months to pay down the debt under lower interest rates. 

Company Credit Cards 

You can open up a credit card for your business as well to enjoy extra financial support and rewards. It also helps build up your business credit rating. Just make sure you don't mix company credit card spending on personal purchases or you could risk embezzlement charges within your company or just confuse finances that could impact IRS tax numbers. Learn more about the legality of using a business credit card on personal expenses here at Daily Prosper.

Secured Credit Cards 

When anyone hears the name “secured credit cards” they are probably already thinking good thoughts. Hearing that something is securing in today’s time is a good thing, but unfortunately not so true in terms of credit cards. If you are looking for a secured credit card it means that you probably have bad credit. Acquiring a card like this will require you to post collateral that is either equal to or greater than your credit limit.

Official Bootstrap Business Blog Newest Posts From Mike Schiemer Partners And News Outlets