Credit
cards come under many different guises and are offered by
many dofferent brands, you need to seperate what the different
card types are before you can consider the benifits of each
one.
Balance
Transfer Credit Cards
Some
credit card are referenced as Balance Transfer Credit Cards.
These cards are normally those that offer a very low interest
rate on balance transfers or in many cases a 0% interest.
This means that any balance you transfer from one credit
card to the "Balance transfer credit card" will
be charged at this rate.
Reward
program credit cards
There
are a plethora of offers that come with the different credit
cards available and these come in all shapes and sizes as
with any product. These offers range from free gifts to
cashback. These are some of the more common offers:
- Airmile
Credit Cards - Airmiles is a points based reward program
offered in a number of countries. You get points for spending
on your credit cards at certain outlets, these can be
exchanged for discounted travel.
- Cashback
Credit Cards- There are many credit cards that offer cash
back on the purchases you make with them, these are referenced
as cashback credit cards but may also have many other
features. The rate of cash back varies but is normally
a few % on the amount you spend.
Secured
credit cards
Secured
credit cards are as the name suggests, secured on an asset.
This may be a bank account and you will normally have a
limit to that of the account balance. This may be a good
option if you don't qualify for a normal unsecured card,
which may be the case if you have bad credit history.
Prepaid
credit cards
Prepaid
cards are often very much the same as a conventional credit
card but is similiar to a calling card in that you have
to put money into the account to use the card. This is normally
used by people who have bad credit and want the convenience
of a credit card but can't get approved.
Student
Credit cards
As
with many financial products there are some cards that are
aimed at students, these cards may only be available if
you are a student and can often have relevant offeres aimed
at the student market.
Business
Credit Cards
All
businesses need a good cash flow and credit cards are an
esencial means of credit for many businesses. There are
many credit cards that are aimed at the business market.
Often you will need to be a business to get these cards
and they can often offer benificial payment terms in line
with the needs of small businesses.
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