Consumers have many options for credit cards today. These include rewards credit card, unsecured cards, as well as store cards. You also have options for those with bad credit. Find the right credit card for you. There are many perks available for each card. Take the time to review the terms and conditions of your new creditcard in order to reap the benefits.
Rewards credit cards
Reward credit cards are a popular way of getting money back on purchases. These cards provide rewards in the form of cash back, points, and even travel miles. As long as your balance is paid each month, you can earn a substantial amount back. Many reward creditcards offer generous welcome bonuses and many other features. You also get cost-saving purchasing protections. These cards can have higher interest rates that other types of credit cards, however. For the best rewards card, you should know your spending habits as well as your financial situation.
Customers with excellent to great credit ratings are best candidates for rewards credit cards. However, they come with annual fees, which can be expensive and may negate any rewards you earn. So, it is important to choose a rewards card that fits your spending habits and is not overly expensive.
Unsecured credit cards
Unsecured credit cards are more flexible and have higher spending limits than secured credit cards. They do not require a security deposit. You can also have credit limits as high as thousands of dollars. An unsecured card can only be obtained if you have steady income and clean credit reports. In order to avoid interest, you must also pay your bill in full each month.
An unsecured creditcard may be possible for you with a good or poor credit score. Depending on which credit-scoring model you use, a fair credit score is anywhere between 580 and 669. It is possible to improve your credit score by responsibly using credit.
There are many types available for unsecured credit cards. There are cash back cards for students, travel rewards cards and cash back student cards. Depending on your spending habits, an unsecured credit card may be right for you.
Store credit cards
The store credit cards are revolving credit lines you can use for purchases in the store. These cards are offered by retailers in partnership with banks and encourage customers to pay for items today and pay them off over time. These cards are convenient for consumers, because you can use them anywhere that accepts credit cards.
Although store credit cards can seem appealing for building your credit, there are some downsides. First, they usually have low credit limits. The maximum credit limit is typically $300 to $500. This makes it easy to go overboard in one day. While store credit cards are convenient for those who have never used credit cards before, they can quickly damage your credit history.
Store credit cards have one drawback: you can only use them in the stores you have a card with. They generally offer a 5% discount on all purchases. You can also earn rewards dollars that will make it easier to purchase future products. Some store credit card companies also have memberships to payment networks like Visa or Mastercard.