Various Types of Credit Cards and Their Benefits

April 10, 2012 by  Filed under: Credit 

When deciding what type of credit card you should get, your choices are much more extensive now than they would have been ten years ago. Due to the increased competition between credit card companies and advanced technology, the companies now offer extensive rewards, membership incentives, and bonuses to cardholders. These points, rewards, and bonuses can help alleviate travel costs, offset vacation expenses, and can provide cash back sums that can help the customer pay for interest rates or to make additional purchases at a fraction of the price that would normally have been spent.

Cash back credit cards; frequent traveler cards, low interest cards, prepaid cards, and zero balance cards are cards that are offered by competitive companies to customers. Consumers with good credit can pick and choose from the types of charge cards they want to carry. Some specific cards will offer money back or flyer miles for people who travel extensively. When you have one of these credit cards and travel on a regular basis using airlines as a main method of transportation, you can earn free flights and flights that are significantly discounted. Each time you use a frequent flyer card to pay for a flight, the rewards program will automatically credit your account with a certain number of flying points. These points accumulate and can be used towards the price of another flight.

Although each credit card company is different, the majority of frequent flyer cards do not stipulate that you must be the person flying. If you have a child flying home from college, you can use your frequent flyer card to pay for that flight and still earn points. The same principle generally applies when paying for a flight for another family member, friend, or extended relative. This benefits the credit company because you are using the card on a fairly regular basis and it benefits you because you are able to accumulate more frequent flyer points.

Cash back rewards provide you with a percentage of money paid back to your account. This percentage is based off how much you spend in retail purchases or vacation or business purchases each month. Many people prefer credit cards that have cash back incentives because they are able to get back a portion of the money they spend when they use a card.

Rewards cards give people rewards that can be used for many different categories of purchases. If you use your credit card a certain number of times and spend a certain amount, you begin to accumulate rewards. These rewards can include free hotel stays, restaurant discounts or free meals, free rental cards, and free services. The services that you can get for free or greatly discounted through a charge card rewards program can include pet services, housecleaning services, landscaping services, vacation tours, free travel agent services, and more. The reward categories are nearly limitless and many times can be tailored to suit the needs of each customer.

Visit to find the best credit cards for you and some of the lowest credit card rates around.

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