The 3 Types of Credit Cards
There are currently six types of credit card: business credit, gas and convenience, travel, department, platinum, and student credit. These six types of credit card differ in a variety of ways depending on who they are designed for, how they are used, and what is needed of users. That being said, there are currently over forty different types of credit card. The most popular ones tend to be the ones that are offered by the major card companies, such as American Express, Visa, MasterCard, Discover, and JCB. However, even with these cards, there are still a variety of options and choices available.
As previously mentioned there are many different types of credit card, but there are a few different types that are growing in popularity. These include debit and credit card, which both function very similarly to each other, and both allow consumers to make purchases online via their cards. Another type of credit card is the prepaid one, which has grown in popularity among many small businesses and particularly those that offer products and services online. Finally, there are many different types of credit card designed to work with cell phones and other handheld devices, which allows consumers to make payments from anywhere with a phone.
One thing that all credit cards offer is some kind of consumer protections, which ensure that things aren’t going to go very wrong. For instance, most major credit cards available offer some kind of protection against fraud and unauthorized transactions, as well as late fees and over-the-limit fees. Many times these are just a portion of a standard service plan, but others come in addition to the service plan. Additionally, there are usually minimum monthly or annual fees that are tied into the service, as well as additional fees for the cash advance features and the insurance plans that come with credit cards.
Cash back credit cards are the one that come with the most consumer protections. These offer consumers cash back rewards on many different types of purchases, which often include gas purchases and retail store items. The consumer is able to earn points and receive discounts based on their total cash back ratio, which can be useful when trying to plan out expenses. On the downside, these cash back credit cards often require frequent and large purchases, and are thus only good for people who can pay cash for most things.
Small business cards are another set of options that allow a person to establish a financial status within a small business. Like other cards, these also provide consumer protections and other conveniences based on a credit history and financial needs. Often, these will let a person build their credit history and pay minimal interest rates. They might also offer small business finance programs, which provide cash advances to business owners that meet certain criteria. In some cases, a business’ purchase may have to be held for a few months to a year, depending on whether it’s a big or small business.
Prepaid business credit cards can also be an option for many people. These are great in that they offer instant approval and do not require a lot of screening. However, like most prepaid cards, these do not have a long debt history and a history of excellent payment. As with any prepaid card, the consumer is responsible for making payments on time and in full each month. Most issuers also require that a minimum payment is made each month, which can make them very inconvenient for those who cannot make all of their monthly payments.
Finally, there are the cards that offer cash back and low interest rates. Some people prefer to use these for their travel needs, while others use them to build up their savings. Either way, these cards are convenient and allow consumers to get extra cash back or pay low interest rates every month without much hassle.
All three types of credit card options can be confusing, but by consulting with a professional credit card counselor, the options will become clearer. These professionals can help the consumer understand how the different credit cards affect their credit and help them decide which ones are best for their needs. Furthermore, by consulting a credit card counselor, the consumer will be able to find out which types of credit Cards have the least amount of negative impact on their score before applying. By doing so, the consumer can avoid spending money unnecessarily and can focus more attention on using credit to its fullest extent.