Different Types of Credit Cards and Features Part
1
Just as there
are too many credit card companies to count, there seems to be just as many
different credit cards, all claiming to offer you the best possible deal.
Since no two people are alike, not all programs and incentives will work
the same for everyone. Finding the one that works best for you is key to
maintaining responsible credit card use.
Types of Credit Cards
One of the more recent additions to the credit card world is the low-interest
credit card. If you live anywhere in the U.S., you've probably already received
information regarding this type of card. These cards offer a significantly
lower interest rate than some of the older ones that you may already have.
Also, most of these cards are also balance-transfer cards. They offer you
the option of transferring a balance from a higher interest rate card and,
for a specified period of time, your transferred balance will be at either
0% interest or something quite low. This can end up saving you a fair amount
of money, particularly if your hope is to pay it off.
Since credit cards have gotten to be such a lucrative business, many corporations
have jumped on the bandwagon. Even airlines now offer credit cards to customers
that will come with a certain amount of frequent flyer miles attached to
them, depending on your balance and purchases. If you do a fair amount of
traveling, this can be a real bonus. Along these same lines, reward credit
cards are growing in popularity. Competition is stiff and many card companies
are now offering you many different reward or incentive options for using
their card. Once you accumulate enough points, the rewards will pore in.
These can be anything from travel insurance to small appliances and anything
in between. If you use a card regularly, finding one that has a reward program
can really pay off.
Another form of credit card is the instant approval card. Again, many of
these applications come in the mail, some even by e-mail. These cards offer
you the opportunity to apply for a card and receive instant approval, meaning
no wait time. Once you fill out the application, a quick background check
will be done and you will have your approval almost immediately. Other cards
can take up to two weeks to process and approve your application. Although
you can get instant approval, this does not always mean you can get instant
credit. Some companies will supply you with a temporary credit card number
and allow you to begin making purchases immediately, while other will not
due to an increase in credit card fraud potential.
Since there are so many options when it comes to choosing a credit card,
do a little research before you apply. Decide what type of card will best
fit your needs and apply for that one. Don't go over board though, applying
for too many cards will negatively affect your credit
score.
Part Two |
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