Different Types of Credit Cards
October 16, 2008
If you are looking to take out a credit card you will find that the wide choice of credit cards on the market these days makes it easier for you to find a card that is perfectly suited to your needs and circumstances. If you have a good credit history and rating you will usually find that you can choose from a wide range of credit cards, although the choices for those with bad credit will be far more limited. It is important to make sure that you choose the right card for your needs and circumstances, as otherwise you could end up paying over the odds or could miss out on some valuable benefits. Below is a summary of some of the popular credit card types available these days:
Rewards credit cards: Amongst the different rewards that are available from credit card companies on these cards are discounts at various retailers, travel rewards, air miles, loyalty or rewards points that can be redeemed for various goods, and more. These are suited to those that spend on their credit cards regularly and repay their balance in full each month.
0% purchase cards: These cards allow cardholders to use the card to make purchases in the normal way but to enjoy a period of interest free credit within which to repay the debt in order to avoid paying any interest at all.
0% balance transfer cards: The way in which these cards work is by enabling you to transfer the balance from other, high interest credit cards onto your new 0% balance transfer credit card. Once the transfer has been made you have a specified 0% interest period within which to clear the outstanding transferred balance before you start getting charged interest. The length of the 0% period can vary from one provider and credit card to another.
Life of balance transfer cards: With the life of balance transfer credit card you transfer your existing higher interest credit card balances in the same way as you would with a 0% balance transfer card, which means that you can transfer debts up to the credit limit in your new card. You will then be charged a very low rate of interest for the life of the transferred balance providing you make at least the minimum repayment each month.
Charity credit cards: For every pound you spend on your credit card the provider will donate a certain amount to the sponsored charity. You can choose from all sorts of charities from cancer support and research charities to animal charities and wildlife preservation.
Credit cards for those with poor credit: There are a couple of main providers that offer credit cards to those with damaged credit, and these are Capital One and Vanquis. You should bear in mind that you will need to meet the lender’s eligibility criteria, and if you are successful the interest rate charged is likely to be very high based on how bad your credit rating is, whilst the borrowing levels are likely to be low in order to stop you from falling into spiralling debt levels.
Recent Additions :
Related Posts
- Declined Applications For Financial Products According to research carried out by MoneyExpert.com, around 5 million applications for new credit cards and loans have been rejected by lenders over the last six months. The figures work
- Cash Back Credit Card Usage Increases According to recent data released the use of cash back credit cards is on the increase in the U.K, with many users looking to get back a little something in
- Charity Credit Cards Many people in this day and age like to give money or make donations to charity, and even in the current financial climate where finances are strained for many households
- The Xmas Purchase Solution For the most cash strapped families who will find it hard this Christmas due to the credit crunch, there is a new credit card in town!! The only problem is
- Searching for a Suitable Credit Card The world of credit cards has become something of a minefield in many ways over recent years, and this is because there are so many different credit card types available
Comments
Got something to say?