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Credit Cards Types and How To Handle With Them

In conjunction with the emergence of banks in America, hotels relied on the use of types of credit cards especially for their privileged customers to pay their money; and thus some shops were keen to produce the kind of cards that continued until the second phase of the war, where restrictions led by the US authorities The credit tools to reduce the production of these cards, and after the end of the war, the cards returned to work again and spread rapidly, and appeared types of credit cards many of which were used in trains and airports.

Types of Credit Cards

Is a small plastic card issued by the financial institutions usually banks that enable the holder to obtain money and the possibility of using it in the purchase of products and payment for various services based on the guarantees taken by the source card (bank) to ensure payment of the cardholder used amount so that there is a bank account of the cardholder With a certain credit limit.

Credit Cards Balance Transfer

Many credit cards come with the ability to transfer balances, each with a high introductory rate, and offer a credit card to convert the balance to a low introductory rate on balance transfers for a certain period of time. If you want to save money on the high-interest rate balance on an existing card they are the best option.

Reward Credit Cards

Bonus cards are those that offer rewards when buying credit cards. There are three basic types of bonus cards: cashback, points, and travel. Some people prefer the flexibility of cash back rewards, while others prefer points that can be exchanged for cash or other goods. Travel rewards cards are preferred by frequent travellers because of the ability to earn free trips, hotel stays and other travel benefits.

Shipping cards

Is a type of credit card, also called a debit card, it does not contain a pre-spending limit and balances must be paid in full at the end of each month.

Shipping cards usually do not have a fee or a minimum payment because the balance needs to be paid in full. Late payments are subject to fees, fees or card cancellations depending on your card agreement, and you usually need a good credit record to qualify for a charge card.

Student credit cards

These cards are specifically designed for university students. These young people often have little or no credit history. Typically, a credit card application has an easier time getting approved for a student’s credit card than any other type of credit card.
Student credit cards may come with additional benefits such as rewards or a low-interest rate on credit transfers, and students should generally enrol in a four-year accredited university until they are approved for a student credit card.

Secured Credit Cards

Secured credit cards are an option for people who do not have a credit history, and secured cards require a card deposit. The credit limit for a secured credit card is usually equal to the amount of deposit made on the card.

But it may be more in some cases – such as major defaults like mortgage defaults, and it should be noted that you are still expected to make monthly payments on a secured credit card balance.

High-Risk Credit Cards

High-risk credit cards are geared towards bad credit history holders, and these cards usually have high-interest rates and fees, while approval is often quick even for those with bad credit. The conditions are often confusing. The federal government has set rules for fees that high-cost credit card issuers can impose, but the source and cards often look for loopholes and ways to avoid these rules.

Despite the non-attractiveness of high-risk credit cards, some consumers continue to apply for cards because they can not get credit elsewhere.

Prepaid Cards

Cards are not associated with a verification account that many uses as a way to stay within budget. Prepaid cards require a deposit before use. Purchases are withdrawn from the card balance and do not include a fee or minimum payment because the balance is withdrawn from the deposit you made.

These cards are not actually credit cards and they do not help you directly in rebuilding your credit card prepaid cards like debit cards.

Advantages of Credit Cards

As long as you use them correctly, credit cards can have a number of benefits on debit cards and cash payments. These include:

Purchase instalment:

With a credit card, you’ll be able to distribute the cost of a large purchase like home appliances in multiple monthly payments, which may be useful in emergencies where you might struggle to pay for what you need

Buy now to pay later:

It may also be a more convenient option to use a credit card where it can allow you to buy a product or service but do not pay for it until the payday flows and you can repay it monthly.

Getting an interest-free loan:

Some credit cards offer a 0% interest rate that lets you actually borrow for free, saving you your monthly payments. Even if you pay the minimum amount required per month, you’ll still borrow interest-free until this period expires. At this stage

Access to benefits and rewards:

Many credit cards also come with different benefits and incentives that can be useful if you choose the right benefits. For example, if you are a very careful shopper, you may lose

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