Not many know that credit cards come in different varieties. Ranging from basics to co-branded ones, they are high in functionality and are a great addition to your lifestyle. Different types of credit card serve different needs. But you need to know how you can use it. Therefore, it is important to know about the available options before you apply for one.
- Balance Transfer credit cards: A balance transfer credit card can allow an individual to transfer the amount from a high-interest card to a lower one and this will allow them to pay off debts with ease. This card can come handy to pay off an outstanding amount and get out of a burden of debt. It will help you save more on interest and has quick processing. You can make multiple transfers from different cards to a new one.
- Rewards credit cards: This one provides rewards on credit purchases. You earn reward points every time you make a purchase from an online or offline source. These points can be redeemed to get cashback on purchases.
- Fuel credit cards: This type of credit card offers various benefits for gas purchases or refuelling. The card can help in saving a substantial amount of money with cashback offers. If you spend a lot on fuel charges, the card will help you save money.
- Business credit cards: These cards are ideal for business organizations and meant for business purposes. They help the business owner manage personal and business finance. It also offers hefty rewards as well as benefits to the user.
- Cashback credit cards: As the name suggests, a cashback credit card will provide cashback with every credit purchase. You can earn the cashback when you pay for retail purchases, movie tickets, grocery and more.
- Co-branded credit cards: These cards are given in association with a financial institution or a retail brand. The privileges and benefits are merged into one card and it provides double benefits to the customers. A bank generally ties up with a merchant in order to expand their customer base through the merchant’s clientele.
- Credit cards for women: Banks have introduced a special credit card for women. They are designed for women who want to reap out benefits while saving on their purchases. They provide benefits on shopping and cashback offers.
- Entertainment cards: Those who are bitten by the entertainment bug can apply for a credit card that fits their needs. This card gives entertainment offers like discounts on shows, movie tickets, events and offers like buy 1 and get 1 free. You also earn reward points on the money you spend through the card.
These are the most common types of credit cards available in the market today. You can consider your personal preference, requirements and usage before applying for one. A credit card is very important in everyone’s life, it not only adds convenience but also adds safety and additional security. However, when you apply for one, it is important to choose the right type of card for you.