Different Types of Credit Cards and Features Part
Different types of credit cards offer
several different options, depending on what your needs are. Some are geared
toward individual consumers, while others are set up in ways that work best
for small business needs. To know what type of credit card fits your needs,
let's review a few of your options.
Business Credit Cards
A business credit
card offers the business owner the opportunity to keep business and personal
expenses separate. The credit card may offer special business rewards and
saving opportunities that go above and beyond what the individual credit
card owner may have. Since money management is essential in successfully
running a business, the card may offer an expense management service that
will allow you to keep track of the outgoing money. You can obtain additional
credit cards for employees who may need them for travel expenses and such
as well as have a higher credit limit than you normally would on an individual
Student Credit Cards
Many credit card
companies will issue student credit cards that have lower credit limits and
fewer incentives to help keep their spending in check. Still, take note.
Many college students graduate with a credit balance that averages between
$3,000 and $7,000 and with interest rates, this can be a real problem when
trying to pay them off.
Prepaid Debit Cards
cards are one type of credit card that has grown significantly in recent
years. Although they work like a traditional credit card when making a purchase,
that is where the similarities end. With prepaid debit cards, you have actually
prepaid and set the credit limit by depositing money onto the debit card.
Depending on how much you have deposited into the debit card's account depends
on how much credit limit you want on that card. This is a great way to have
the convenience of a credit card without the chance of charging more than
you can afford to pay off.
Credit Cards For Bad Credit
It is possible,
even with bad credit to obtain a credit card. These cards will come with
some restrictions not typically found on other types of credit cards. Your
credit limit will be lower and your interest rate higher. Some may require
you to have a secured credit card, meaning you have to maintain a savings
or some other type of account that will cover the expenses on the credit
card. Once you have established that you will be responsible, some, if not
all, of your restrictions may be lifted.
Cash Back Credit Cards
Many credit cards
will now offer you cash back incentives for using their credit cards. Depending
on how much your balance is and how often you use the credit card, you can
earn cash back for your purchases. Some companies offer 1% off your balance
while others, like Sears, will offer you cash off purchases made in their
store. Either way, if you are planning on using a credit card, finding one
that will offer you a cash incentive is a smart choice.