Many types of credit cards exist and are available from major banks and other financial institutions and choosing the right card for your needs could prove to be vitally important. In the following article we examine four kinds of the most common cards available which should help you in making your decision when it comes to the right one for you.
Prepaid Credit Cards
Actually prepaid credit cards are exactly what the name suggests. These types of cards allow you to budget well and are pre-loaded with a decided amount of money before being used to purchase goods. You decide on the amount of cash that gets loaded onto the card. These are excellent for helping to teach teenagers to be more responsible when it comes to working with money and responsibility when it comes to having their own credit card.
Standard Credit Cards
The standard credit card is the one most of us choose to use and are the most common type. The main difference between these kinds of cards is the interest rates will vary from bank to bank usually and can be anything from 0% interest and upwards depending on certain factors such as salary and previous credit records.
Reward Credit Cards
These types of credit cards offer you certain rewards when you make purchases such as cashbacks, air miles, or discounts on goods from chosen stores in your area. Normally in order to qualify for these kinds of cards you need to hold a very good credit history.
Bad Credit Credit Cards
There are credit cards available for those with a bad credit history who maybe want to repair their poor records and use one of these cards to assist. Speak to your local bank about the types of bad credit credit cards available to you as they will have certain requirements and will want to know the state of your current debt and financial situation.