Today there are different credit cards which come in different levels with the varying interest rate, reward programs and fee. Therefore before making an application, it’s critical to know which credit card best suit your financial situation and lifestyle. Below is a brief description of the most common types of credit cards you should know.
Business credit cards
Business credit cards are specifically meant for business use. They provide a secure method of keeping business and personal transactions separate to the business owners. Personal credit history is considered when it comes to a business credit card because the credit card issuer must hold an individual accountable for the credit card balance. Business credit card is essential since it can help you maximize business purchases. Some business cards offer bonus points for online shopping, like advertising. While some cards, like the Ink Business Preferred℠ Credit Card, emphasizes on physical purchases at office supply stores or gas stations. There are several types of business credit cards to help with your business needs, with no annual fee business credit cards to build credit for people looking to grow their business credit score. The points are redeemable.
Student Credit Cards
Students are usually limited beyond getting a student discount at local businesses. Although there are credit cards for students, credit card spending limits are always kept small, never the less they can still enjoy better rewards than non-college students with similar credit profiles. By giving a positive payment history in school, it’s easy to have a good credit score to qualify for a top rewards credit card after graduation. For example, The Journey® Student Rewards from Capital One® is a credit card that doesn’t require a security deposit. It may offer a higher credit limit than other secured credit cards. It doesn’t charge an annual fee or foreign transaction fee. It also earns purchase rewards. As a student, you will receive 1% cashback on every purchase, and on-time payments can give you a 25% boost. This means you will get 1.25% back on every purchase when you pay your balance in full every month. If a student spends $200 a month, he will get $2.50 bonus cash instead of the standard $2 bonus cash without any potential late fees with the 1% bonus. Read more if you want to know what does a no annual fee credit card mean.
Reward credit cards
Rewards credit cards offer rewards on credit card purchases. There are three basic types of rewards cards: cashback, points, and travel. While most people prefer cashback rewards. For example, the Citi Double Cash offers an unlimited 2% back for each dollar spent. Others like points because they can be redeemed for cash or other things. Travel rewards cards remain the most preferred among frequent travellers due to the ability to get free flights or hotel stays.
Although there are many different types of credit cards, any card can assist your credit score to grow as long as you manage it properly. The more your credit score increase, the more you qualify for cards that offer more valuable purchase rewards and other benefits—hence knowing the different types of credit cards key, before deciding the best credit cards to build credit which best suits your current needs.