A Few Of The Various Types Of Credit Cards To Choose From
Nowadays, there are numerous payment methods other than cash payments; the cashless payment options include bank transfer, UPI, EMI card, and card payments. Card payments are not a very new phenomenon but are still pretty recent. But if you’re planning to use a card, there are innumerable options to choose from. Firstly you have a choice between using a debit or credit card. Usually, a debit card is always suggested over a credit card. However, there are numerous benefits to using a credit card. And therefore, you should have a credit card and take advantage of all the deals, offers, and cashback lenders have to offer.
Several credit cards to choose from are spread across dozens of lenders with different credit lines like instant credit line. Therefore, the first step to choosing a credit card is to figure out the type of credit card you want to be based on your needs. We have cards ranging from the primary no-frills card, also known as plain vanilla, to a premium card with many perks and benefits.
- Standard/ Plain Vanilla Credit Cards
Standard credit cards are easy to understand. You choose this credit card if you want a card that isn’t complicated and when you’re not interested in earning rewards or a credit score. Most of them allow you a revolving balance up to a specific credit limit as far as credit cards are concerned. The credit you’ve stored is used up when you make a purchase and then replenished once you make the payment. At the end of each month, finance charges are applied to outstanding balances. In addition, credit cards have a minimum amount that must be paid by a specific due date to avoid late payment penalties.
- Balance Transfer Credit Cards
While many credit cards offer you the option to transfer balances, a balance transfer credit card offers you introductory rates on balance transfers for a defined period. In other words, a balance transfer is a great way to save money if you are carrying a high-interest rate balance on an existing credit card.
There are many kinds of balance transfer interest rates. Some areas are as low as zero percent. Still, they usually come with qualifications, such as a fee for each transfer. The lower the promotional rate and the longer the promotional period, the more enticing the card becomes. However, you will often have to have good credit to qualify.
- Rewards Credit Cards
These cards offer rewards on purchases made with credit cards, as their name implies. A rewards card may come in three forms: cashback, points, and travel rewards. Many people prefer the flexibility of cashback rewards. In contrast, others prefer points redeemed for cash or merchandise. Travel rewards cards remain a favorite among frequent travelers since they allow you to earn free flights, hotel stays, and other travel rewards.
- Student Credit Cards
These cards are specifically designed for college students who understand that these young adults often have little or no credit history. As a result, a first-time credit card applicant would generally have an easier time getting approved for a student credit card than another type of credit card.