There are many credit cards on offer today. There are three types of credit cards available to consumers today: unsecured cards, rewards credit, and store cards. You also have options for those with bad credit. Discover which credit card is right to you. Each type of credit card offers a different set of perks. Take the time to review the terms and conditions of your new creditcard in order to reap the benefits.
Reward credit cards
The most popular way to get cash back on your purchases with rewards credit card is through the use of these cards. These cards provide rewards in the form of cash back, points, and even travel miles. As long as you pay off your balance each month, you can get a substantial amount of money back. Many reward creditcards offer generous welcome bonuses and many other features. You also get cost-saving purchasing protections. These cards have higher interest rates than most other credit cards. Therefore, you need to know your spending habits and financial situation to know which rewards card is best for you.
Reward credit cards are best for people with good to excellent credit. The downside is that they can have high annual fees and can reduce the rewards you earn. So, it is important to choose a rewards card that fits your spending habits and is not overly expensive.
Unsecured credit cards
Unsecured cards have greater spending limits and are more flexible than secured cards. They require no security deposit and can have credit limits of up to thousands of dollars. A steady income and clean credit score are required to get an unsecured debit card. In order to avoid interest, you must also pay your bill in full each month.
A fair credit score may qualify you for an unsecured card. A fair credit score can range from 580 to 669 depending on the credit-scoring model. Responsible credit use can help raise credit scores.
There are many options for unsecured credit cards. There are several types of unsecured cards available: student cards; cash back cards; and travel rewards card. An unsecured card could work for you depending upon your spending habits.
Shop credit cards
Store credit cards are revolving lines of credit that you can use to make purchases at the store. Retailers offer these cards in partnership with banks. They encourage customers to purchase items now and then pay off the balance over time. These cards can be used wherever credit cards are accepted.
Although store credit cards seem like a great option for building credit, there are some drawbacks. The first is that they typically have low credit limits. The maximum credit limit is typically $300 to $500. This can make it easy to overspend in a single day. Even though store credit cards can be very convenient for first-time credit card holders, they can easily cause credit damage to your credit score if you're not careful.
The only problem with store credit cards, however, is that you can only use it at the store where you have a store credit card. Generally, you get 5% off your purchase. Some also offer rewards dollars to make future purchases easier. Some store credit cards can also be linked to payment networks, such Visa or Mastercard.