Types of Credit Cards
There are a whole variety of different types of credit cards available which can make choosing the right one a very confusing experience. In order to help you decide, listed below is a useful breakdown of the various types of credit cards available.
Standard Credit Cards
Standard credit cards work as you might expect - with the cardholder using the card in order to pay for goods and services up to their agreed credit limit. Repayments are made once every month which must at least cover the agreed minimum repayment. These repayments will cover not only the capital borrowed but also the interest and extraneous charges payable upon the amount borrowed, usually referred to as annual percentage rate. Standard credit cards should not be confused with debit cards where transactions are charged directly to your current account.
Charge Cards
Charge cards work in the same way as normal credit cards with one difference, the balance of the charge card must be paid off in full every month. Charge cards are most regularly issued to either businesses or to consumers who may have had a bad credit history in the past. If you have a poor credit history then a charge card might be offered to you because the full monthly repayments would preclude spiralling debt. Charge cards are also popular with the wealthy consumer as this sort of card can offer credit practically without boundaries. It should be noted that if the cardholder does not pay off their balance once a month as required then they could incur very hefty fines.
Platinum and Gold Credit Cards
Platinum and Gold credit cards are only available to applicants who earn a certain level of annual income and, accordingly, offer a number of benefits to the cardholder which will vary from provider to provider. Higher credit limits are usually associated with these types of credit card. If you fall into a higher income bracket and have a good credit history then you will be able to benefit from the advantages that such a credit card offers.
Store Card
A variation on the credit card, a store card will allow the cardholder to make purchases with a particular retailer on a credit account. The cardholder can then effectively buy products without paying for them until a later date, when it is most convenient for them. You will often be offered discounts on the goods that you buy with a store credit card but it should be noted that the interest charged on such cards are usually extremely high. This is an area that you must be sure to look into with prudence if you are considering obtaining; you might find that the disadvantages outweigh the advantages.
Reward Credit Cards
Reward credit cards, or loyalty cards, operate in a similar way to charity cards except that the main recipient of any benefits is the credit cardholder. Incentives may include cash bonuses, points, discounts and Air Miles. With this type of credit card it is important that you think logically about the rewards being offered, and work out exactly how much you will need to spend on your credit card in order to reap the benefits.
Charity Credit Cards
Charity credit cards offer all the usual benefits of a regular credit card but also donates a particular percentage of what you spend to the charity to which it is affiliated. These charity donations are made at no extra cost to the cardholder and the card allows consumers to help a good cause simply by spending money in the way they always would. You can obtain credit cards for a whole range of diverse charities as well as organisations such as football clubs or universities.
You may freely reprint this article provided the author's biography remains intact:
About The Author
John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the http://www.directonlineloans.co.uk website.
Latest News
 PR Web (press release) | First California Financial Group Announces Passing of Chief Credit ... CNNMoney.com - First California Financial Group, Inc. (NASDAQ: FCAL) today announced that Walter Duchanin, executive vice president and chief credit officer of its ... First California Financial Group Announces Passing of Chief Credit ... |
 International Business Times | Fitch Affirms Norfolk Southern IDR at 'BBB+'; Outlook Stable MarketWatch - Fitch's ratings apply to approximately $6 billion in outstanding unsecured debt and a $1 billion unsecured revolving credit facility. ... Fitch Affirms Telmex IDR at 'A-'; Outlook Stable Fitch Rates Michigan Muni Bond Authority's $199MM SRF Revs 'AAA ... Fitch Rates Alaska's Lease Revs 'AA-'; Outlook Stable |
Credit crunch due to lack of borrowers: Lacker MarketWatch - By Greg Robb, MarketWatch WASHINGTON (MarketWatch) -- The credit crunch is more about lack of opportunities for good loans than concern about bank capital, ... |
Bond Risk Rises to Record in Europe, Credit-Default Swaps Show Bloomberg - 20 (Bloomberg) -- The cost of protecting European corporate bonds from default rose to a record, according to traders of credit-default swaps. ... Australia Corporate Bond Risk Rises, Credit-Default Swaps Show Japanese Bond Risk Soars to Record on Concern Banks Weakening |
Credit Markets Fall to Records as Confidence in Economy Wanes Bloomberg - 19 (Bloomberg) -- Credit markets from commercial mortgages to junk bonds fell to record lows as concerns grew that the slowing economy would overwhelm ... |
PayPal to Offer Credit for Holiday Purchases Wall Street Journal - By CHRISTOPHER LAWTON At a time when money is tight, eBay Inc.'s PayPal unit plans to offer consumers credit lines for online holiday purchases in a bid to ... Research and Markets: This Essential Online Retail Payments ... |
lawmakers propose tuition credit Salt Lake Tribune, United States - John Dougall, R-American Fork, proposed legislation Wednesday that would give higher education students a tuition tax credit. In light of the current ... Debt load class issue Economy, debt make college less affordable |
Regulating Credit Default Swaps: Will It Work? BusinessWeek - By David Bogoslaw The market for credit default swaps (CDS)—derivatives that insure holders against default on a range of debt instruments—is getting plenty ... Crowell & Moring Hosts Seminar Series to Address the Future of the ... Data on credit swaps a must for US banks |
Chrysler credit rating could be cut Detroit Free Press, United States - BY TIM HIGGINS • FREE PRESS BUSINESS WRITER • November 20, 2008 Fitch Ratings cautioned Wednesday that it might lower Chrysler's credit rating to a level ... |
Florida CFOs face credit squeeze Bizjournals.com, NC - A survey by Grant Thornton LP found that nearly three of every four top financial executives at Florida companies said credit is tougher to come by now than ... Survey: Few CFOs upbeat about economy |
Resources
-
Bad Credit Loans, Bad Credit Credit Cards - YoureApproved.org!
Personal loans, Credit cards from bad Credit lenders including bad Credit loans - high risk unsecured bad Credit cards - debt consolidation loans - payday loans!
-
Bad Credit Loans - Personal Loans - Credit Cards - Home Loans - Auto Loans - Credit Repair
Bad Credit loans and Credit cards - personal loans - high risk loans - Credit repair - free government grants - government auctions - police auctions - debt consolidation - filing bankruptcy
-
No Money Down - Creative Real Estate Investing!
Learn how to control real estate Without Credit checks and no money down! You can Buy With No Credit!
-
Pass Your Class - Pass Your Clep Tests - Guaranteed!
Pass your CLEP tests - Guaranteed! Pass or Pay Nothing. 98% of all students that study our materials PASS!
-
Debt Elimination that Works: Remove All Your Debt, including Credit Cards and Mortgage in 3 to 5 yea
Debt Elimination that Works: Remove All Your Debt, including Credit Cards and Mortgage in 3 to 5 years.
-
Access Loan.
15,000 Cash Loan - Even With Credit Problems.
-
Credit Repair in 1-3 Months!
Credit Repair - Repair bad Credit within 1-3 Months.
-
Profit in Real Estate Without Cash, Credit or Risk!
Profit in real estate without cash, Credit or risk. Learn how to make quick cash in real estate without owning property.
-
Repair Credit Reports
A Downloadable Credit Repair Guide Aff. Make 50% Comm.
-
Credit Repair
Great seller quick turn around. High payout.