Take your pick from these 8 types of credit cards

ExecutiveChronicles.com | You make a wish for credit for business or personal reasons, and you can find one for the purpose you need it. Credit card companies keep researching consumers to ascertain their spending patterns and use the information to devise tailor-made credit cards.  Credit cards come with multiple options just like smartphones and credit card companies incorporate features that customers would find as if cut out for them only. From features to price points and other considerations credit cards are now exclusively available for specific purposes. That you will just get the credit card you need is not just sales talk but very much a reality. From travel rewards credit cards to gas rewards cards, and going up to student credit card and retail card the options are many.

Credit cards are all the same if you consider its operational principles but differ in the features to meet specific consumer needs. Credit card companies want to use every opportunity of business by exploring consumer spending behavior, and this has led to the creation of different types of credit cards. What these different credit card types are and how it provides convenience to cardholders will become clear on going through this article. You will also be able to compare travel credit cards vs cash back credit cards. 

• Unsecured credit card

Credit card companies issue unsecured credit cards to reliable customers with satisfactory credit score without asking for any deposit or collateral as security. Credit cards give a splendid opportunity for building credit.Unsecured credit cards are very popular and the most common type that you will come across. The fundamental truth about credit card is that it can help to balance your finances well only if you use it responsibly. Being reckless in credit card use can spell disaster as you would find yourself caught in a vicious debt cycle that is very difficult to come out from.

• Secured credit cards

A poor credit score or no credit score are genuine impediments in getting a credit card because credit card companies evaluate consumer reliability based on credit score. To overcome this problem, you can opt for secured credit cards that credit card companies would be willing to offer to customers who are unable to satisfy them with proper credit score. You must pay a deposit to the credit card company to secure your line of credit. The credit limit matches with the amount of deposit because credit card companies want to remain completely secured. Limited reward offerings are typical of this type of credit card, but there are no restrictions on usage. 

• Travel rewards credit card

Travel is a priority for many people who can benefit a lot from travel rewards credit card designed specifically for helping consumers to generate savings from travel-related purchases. For those who travel a lot for whatever reason would find this type of credit card very useful. Indeed, you must pay an annual fee for the card, but the rewards come in the form of points of miles accrued from the air trips and travel-related purchase that you can redeem to purchase air tickets or make payment to hotels and cabs. For example,every dollar spent on the credit card earns you a point or one mile, and you receive a sign-up bonus for spending a specified amount within a given time frame.

• Balance transfer credit cards

If you want to save on interest despite being in credit card debt, the balance transfer credit card can be of great help.  You can transfer debts from other credit cards to the balance transfer card and need not pay any interest as it comes with 0% APR as an introductory offer that remains valid for a specified sum of transfers up to a certain date or period. Remember that the attraction of zero interest will not last very long and you must have a plan for regular payment of debt to complete it within the promotional period.

• Cash back credit cards

There is nothing better than earning points for every dollar you spend on a credit card, and this is precisely what you get by using a cash back credit card. You can redeem the accrued points as gift cards, cash back or statement credit.  Some credit card companies offer cash back at a flat rate, and in some types of credit cards, there might be bonus categories that help to earn more cash back. The card is beneficial for getting the most value for money.

• Gas rewards credit card

If you love driving or commute a long distance to work or you are a cab driver, you will be delighted to get a gas rewards credit card.  Since you purchase a good amount of gas every day, you will earn rewards for the purchases. Depending on the credit card company some gas rewards credit cards come with some limit on the rewards you earn or offer higher rewards during some specific months. This type of credit card is tailor-made for those who are big consumers of gas whether for self-driving or commercial purposes.

• Student credit card

 As the name indicates, Student credit cards are for college students only. Since students generally do not have any earning, have little or no credit history the student credit card gives them a splendid opportunity to build credit from scratch. However, these cards come with a lower credit limit, and some student credit cards require deposit too like secured credit cards. The interest rate on student credit cards is also higher.

• Retail card

It is a special type of credit card issued by retailers in partnership with a bank. Some credit cards are for exclusive use at the specific retailer outlets and are known as a closed-loop retail card. On the other hand, Open loop retail cards are issued by a retailer with the backing of major credit card network. People with average credit can obtain closed-loop retail cards and use it for improving their credit score.

Which card would suit you depends on the goals you set in managing your finances.