These days marketing ploys are resulting in an amazing bouquet of credit cards. From a simple form of plastic money, credit cards have metamorphosed into cards that give grocery discounts, clock travel miles, and add points to travel miles, offer online facilities, and more. Before you apply for a card you need to know your needs and what is on offer in the market. Standard Credit Cards are the oldest kind and offered by banks and financial institutions. These are unsecured and can be: low interest cards, balance transfer credit cards, and reward program credit cards. Airline Mile Cards are frequent flier cards that offer airline mile credits whenever you use the card. Once sufficient points accrue you can convert the points into tickets. Cash back credit cards are unique and they offer you say 5% cash back on purchases. The higher your usage the more the rewards. Such cards charge an annual fee that can range from USD 50USD 100. Reward Cards offer incentives where by you can adjust points against purchases or get gas rebates, discount booklets, tickets to movies at reduced rates and so on. Credit Repair Cards are for people with bad credit and who need debt consolidation or management. Such cards offer introductory APRs and help in rebuilding credit history. Secured credit cards are those that ask for a security deposit. These are issued against collaterals like a house, car, boat, securities, and jewelry and so on. Prepaid Credit Cards are a form of debt card. Where the amount is already in deposit with a bank. This protects against credit card debt. Specialty Credit Cards are for students, children, and business users. Business credit cards are regular cards but they keep business expenses separate from personal expenses, offer business rewards and savings, give expense management reports, offer cards to groups, employees, and give higher credit limits. Student Credit cards are simple and meant for use by students who have no credit history. They protect a student when he or she is away from home. Before applying you need to read the terms and conditions offered and find out which institution will give you competitive terms. Today one can apply for cards online and do comparisons before applying. Make a list of questions to ask before accepting a card. Think carefully do I really need one? What am I going to use it for? Remember card companies are run by masters in marketing and will bombard you with what seem to be sops." These are just lollies to tempt you to use their cards. You need to be clever and stay away from the traps they set. Credit Cards are useful if used right. So study the world of credit cards before owning one. Nothing is life is free is true with credit card companies too. They are in the business for profit and charge high rates of interest as well as fees. Always check the fine print and find out what the benefits and pitfalls of owning a card are.
Please Rate this Article 5 out of 54 out of 53 out of 52 out of 51 out of 5
Not yet Rated
