There are thousands of credit card users nowadays, if not more, and the market houses so many types of credit card options too. The primary step to choosing credit card is to figure out the type of credit card you need, depending on your basics. The credit card type depends on the range, right from the basic to the no frills card to even the premium card, associated with so many benefits and perks. Before you finalize on the card you want to select for your use, log online and head towards the best name in the town. There are so many of them available already and you have to select the best one among the lot. For that, logging online and gaining some help will work big time for you.
The standard credit cards:
The first one you can always try your hands on can be the standard credit cards, which are often termed as “plain vanilla.” The reason for this name is because this form of cards won’t offer any kind of reward or frills. Moreover, these items are quite relatively easier for you to understand. You can get the chance to choose any form of credit card but if you are actually looking for a card with no complication, this option is best suited for you. If you are not interested in earning rewards, this card is the one for you.
- This standard version of credit card will allow you to have revolving balance up to around a certain credit limit.
- Credit will be used whenever you make a purchase and then more credits are made available after the payment has been taken care of or covered.
- A financial charge will then be applied to the current outstanding balances at end of every month.
- Credit card will definitely have minimum payment, which will be paid within a due date for avoiding any kind of late payment penalties.
Focusing towards the balance transfer credit cards:
Even though there are so many credit cards coming with the ability to transfer balances, a balanced transfer credit card is the one to choose with lower introductory rate on balance transfer for a selected time. In case, you are willing to save some bucks on higher rate of interest on existing card, a balance transfer is that perfect option for you.
- The balance transfer interest can always change. Some proven cards are even as low as 0% but will come with qualifiers like minimum of around 2 transactions a month.
- The lower your promotional rate is going to be and the longer promotional period will be, the higher attractive your card is going to be.
- However, you are mostly in need of good credit score to actually qualify for these kinds of cards. You can often ask experts from PFA to help you with the right selection of balance transfer credit cards.
Rewards credit cards:
As you can understand clearly from the name itself, rewards cards are basically those options, which are offering rewards on some of the basic credit card purchases. There are mainly three basic forms of reward cards waiting for you to grab.
- Cash back
Some people are focusing more towards cash back rewards and the flexibility associated with it. On the other hand, you have others focusing towards points which they can redeem for cash or any other merchandizes. You can also have some of the travel rewards cards, which are always important choice among frequent travelers. They get the chance to earn some free flights, discounts on hotel stays and even some other traveling perks.
Student credit cards:
These forms of credit cards are purposely designed for college students with proficient understand that these young adults will have either no credit history or very little of it. A novice credit card applicant will have an easier time to get approval of student credit card when compared to other forms of cards.
- The student credit cards might have some added perks like low interest rates on transferred balance or rewards. However, these are not just the most important features you have come up with.
- Students might have to enroll at accredited university for four long years to get approval for a student credit card. However, the rules might vary a bit depending on the banks.
In terms of charge cards, there is no preset spending limit and even the balances need to be paid in full amount, right at end of each month.
- These charge cards will typically not have any financial charge. It will not have minimum payment as the balance has to be paid in full.
- Late payments are further subject to charge restructures, fee or the card cancellation, based on the card’s agreement.
- In order to get qualified for the charge card, you have to get a good credit history for sure.
Secured credit cards:
Secured credit cards are a primary option for people with no credit history or who have already damaged credit status. Secured cards are in need of security deposit to be placed right on the cards. Credit limit on secured credit card is equal to the deposited amount on card. But, in some cases, it might be a bit more like major default such as mortgage payment default or more. However, you should remember that you are still expected to make some monthly payments on secured forms of credit card balances, to avoid any form of debt later.
Subprime credit cards:
One of the worst forms of credit card products has to be subprime credit cards. These cards are geared towards applicants with bad credit history and will have typical high interest fees and rates. Even though approval seems quite fast even for those with a bad credit, these terms can prove to be rather confusing in nature. Federal government has taken the matter in its own hand and has made rules related to fees these credit card issuers might charge you with. However, the card issuers will often look for some loopholes and ways to skirt such rules.