The Super Secrets of Credit

The Super Secrets of Credit

The Super Secrets of CreditCredit Cards: – Types and What You Need to Know about Them.

Nowadays, everybody wants to have at least one credit card. Everywhere you go you see adverts from various banks and other financial institutions offering you credit cards. However, before you apply for a credit card, there are several factors you need to consider.

So, it’s very important that you know more about the types of cards available, and the one that will work best for you.

Secured credit card: – Secured credit cards are types of cards that require a security deposit as collateral before you can get approval. It’s the type of card that best suits the needs of people with no or poor credit who are trying to build their credit history. Your collateral must be equal or greater in value to the credit amount you are applying for.

It can be anything of high monetary value like a boat, jewelry, shares, house etc. Just like any other cards, you have to make sure that you study the terms and conditions associated with this card very well before taking the card. It’s even very important in this case when you are building your credit history.

Business credit cards: – These are the card that’s available for business owners, directors and business executives. They come with several features just like any traditional credit cards. You have to consider the terms and conditions for these types of cards too before applying.

Student credit cards are another type of credit card specifically for students. These types of cards are made for students because of their lack of credit history, and if given a chance they can build their credit history with such a card.

Prepaid credit cards are a set of cards that are just acceptable wherever the traditional credit cards are acceptable, but they are not credit cards. You will have to always transfer money to your card before you can make use of the card and you may not be able to spend more than you prepaid for the card.

Presently this is almost the best card for people that want to avoid interest and other fees charged on traditional credit cards. However, other little charges like monthly fees, application, overlimit and ATM fees are still applicable

Whichever card you decide to choose make sure that you go over the terms applicable very well to avoid putting yourself in financial bondage.

In the second part of this article, we will continue looking at other types of credit card.

Balance credit cards are unsecured standard cards designed to allow consumers to save money in interest charges by transferring higher interest credit card balance onto a lower interest rate credit card.

Low interest credit cards are other types of non-secured standard credit card. They offer either low introductory APR that changes to a higher rate after a certain period of time or a low fixed rate.

You can take advantage of the low introductory APRs to make larger purchases for now and pay them off several months later.

Air Mile Credit cards are cards that are good for people that travel frequently or are planning to go on vacation. It’s a form of reward card that allows you the opportunity of obtaining a free airline ticket. You will need to accumulate specified air miles before you can be entitled to a free ticket.

All accumulated mile points will be based on the dollar amount of your credit card purchases over a period of time based on predetermined point level.

Specialty credit cards are another set of standard non-secure cards designed specifically for individual business users and students with unique and special needs.

Make sure that you study the terms of any of the cards that you pick very well to avoid risking your credit rating.

Also, when you pick any of the reward cards make sure you study the forms and offers very well because credit card issuing companies do offer different reward programs and their promotional offers often change.

So, make sure you thoroughly look over the card’s terms and conditions of each specific card before applying.


Regards, Coyalita

Behavioral Health Rehabilitative Specialist & Addiction Counselor

Copyright © 2021-2023 All Rights Reserved

Privacy PolicyEarnings DisclaimerTerms of UseContact Us

Leave a Reply

Your email address will not be published. Required fields are marked *

Share on Social Media