There are many types of credit cards that consumers can choose from today. These include store cards, rewards credit cards and unsecured card. People with poor credit have other options. Discover which credit card is right to you. Each card has its own perks. Be sure to carefully read the terms and condition of your new card in order to get the most benefit.
Reward credit cards
A popular way to earn money back on your purchases is with rewards credit cards. These cards provide rewards in the form of cash back, points, and even travel miles. If you pay off your balance every month, you will get a significant amount back. Many reward credit cards offer generous welcome bonuses as well as many other features. They also come with cost-saving purchase coverages. These cards are subject to higher interest rates than other types. For the best rewards card, you should know your spending habits as well as your financial situation.
Customers with excellent to great credit ratings are best candidates for rewards credit cards. You may lose any rewards earned by them due to their annual fees. It is important that you choose a rewards card that suits your spending habits while not being too expensive.
Secured credit cards
Unsecured credit card are more flexible than secured credit cards and allow for higher spending limits. They don't require any security deposit, and they can be credited up to thousands. A steady income and clean credit score are required to get an unsecured debit card. Otherwise, interest will accrue.
An unsecured creditcard may be possible for you with a good or poor credit score. You can get an unsecured credit card with a credit score between 580-669, depending on which credit scoring model you use. You can raise your credit score by using your credit responsibly.
There are many types and options of unsecured cards. There are student cards, cash back cards, and travel rewards cards. Depending on your spending habits, an unsecured credit card may be right for you.
Shop credit cards
You can make store purchases with your store credit card. These cards are offered by retailers in partnership with banks and encourage customers to pay for items today and pay them off over time. These cards make it easy for consumers to use anywhere you have credit cards.
Although store credit cards seem like a great option for building credit, there are some drawbacks. They usually have very low credit limits. The maximum credit limit is typically $300 to $500. It is easy to spend too much in one day. Although store credit cards are useful for first-time credit card customers, they can easily harm your credit history.
The downside to store credit cards are that you cannot use them in stores other than those you have credit cards with. They usually offer discounts of up to 5% on purchases. Some cards offer rewards dollars, which can be used to make future purchases more easy. Some store credit cards can also be linked to payment networks, such Visa or Mastercard.