Familiarize Yourself With the Different Types of Credit Cards Available

March 20, 2012 by  Filed under: Credit 

When a person applies for a credit card, it is important to know what type he or she is applying for. If you are in the process of getting one soon, you will benefit from taking the time to check out your options to see what is available and which type of card will best suit your needs and your family’s financial needs. There are standard cards, ones that offer rewards and perks, ones that provide traveling assistance, ones for business, ones for cash back, charge cards, secured cards, and many others.

Rewards credit cards can be obtained for just about any category of interest. If a person is interested in sports, he or she can sign up for one that issues bonuses, discounts, and free sports tickets or equipment after they make a certain amount of purchases. These perks can be a great reward to use on a rainy day or to give as gifts to friends and loved ones. If a person is interested in art, he or she can apply for a rewards card that provides them with discounts on touring art galleries, photography equipment, art supplies, and theatre tickets.

There are rewards programs available for nearly any category of interest or hobby that a person can think of. People who love to travel or who love to go on cruises will be able to find a large number of rewards cards that offer traveling perks and cruise discounts. Sometimes, these traveling perks and cruise discounts can include upgrades to all-inclusive meals and drinks, free guided tours, discounts on souvenirs, and cash back for shopping while traveling. Traveling insurance and free car rentals and free hotel stays can also be accumulated if you use your rewards card on a regular basis.

Standard credit cards are the most common kind and are the cards that the average person will carry. These standard cards do not offer any special perks or benefits and typically charge a minimum annual fee. The annual fee with standard ones can range anywhere from fifteen dollars per year up to fifty dollars per year. Card companies compete with each other to try to offer the lowest cost on annual fees for cardholders. With a standard card, also referred to as a basic card, the cardholder has a credit limit and pays the amount he or she spent during each month by a certain date or an interest fee will be added to the account. Standard cards are great for using if the person is not frivolous and pays the balance before the interest fee is charged.

Secured credit cards are cards for people who do not have a stable credit history. These cards generally are secured with a deposit and are also referred to as prepaid credit cards. These types of cards are ideal for people who are trying to improve their credit scores by demonstrating they are paying bills on time.

Visit http://www.creditcardrates.com to find the best credit cards for you and some of the lowest credit card rates around.

Article Source:
http://EzineArticles.com/?expert=Greg_M_Beaumont

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