There are a number of credit cards that exist in the market which target different
sections of the society. Each type of credit card has its own importance and
serves their purpose well only in some specific financial situation. Before
reading the types of credit cards you must be clear about some of the finanacial
terminology. Following is a list of credit cards that are available in the
market.

Standard Credit Cards

These credit cards are unsecured cards
and they are most readily available to any one with a good credit history. There
are several types of standard credit cards which have been categorized by APR offered.




Balance Transfer Credit Cards

These credit cards are developed for people who are battling with debt. If a person has several credit cards he can transfer the balance of a higher interest rate credit card to this ban lance transfer credit card. There is an introductory APR for these cards which is very low. When the balance is transferred to it the APR stays to the same low value for the introductory period like 3 months or 9 months etc. Overall this balance transfer usually saves a lot of money for a customer. Before having one such card read very carefully the terms and conditions especially for the introductory period APR.



Low Interest Credit Cards

These come in two flavors;

• Credit cards with low variable interest rate
• Credit card with fixed low interest rate

The first credit card type has a low APR for a specific period of time. After that its APR changes to some higher value. In case the introductory period is 9 months then in this period a low APR e.g. 4% is charged on any purchase. After this period the rate is changed to a higher value say 10% APR and any purchase after the 9th month gets an APR of 10%.



The latter credit card type has a lower APR throughout the credit period. This APR however depends on the health of a person's credit score. If a person's credit score falls then he might be subject to pay higher interests.



These cards are helpful to make large purchases during the introductory phase. Since APR is low they save a lot of money on these purchases.

Credit Cards with Rewards Programs

These cards offer an incentive to the consumer who has a very good credit score. For the purchases they make, they are given rebates or cash backs, extra flying miles, discounts etc. Some of these are as follows.

Airline Mile Credit Cards

When you make a purchase on this credit card you gain points. These points that you have accumulated over some period of time are then converted to airline miles. There are different types of these airline mile cards. Since these cards give you free air miles which is expense for the credit card company so they usually come with annual fees which vary from &50-&100. Before applying note the following points;

• How many miles do you get for a dollar.
• On how many miles will you get a free ticket?
• The most important one is do they expire.
• What is the annual fee on the credit card?

This credit card type is good for the people who travel a lot. For others it might not be of any use.



Cash Back Credit Cards

On these credit cards, a percentage of your purchases is returned back to you as a cash reward. Usually this percentage of cash back is 1% of the purchases you have made. The reward comes free of any interest rate or finance charges. Since like air mile cards they are also expensive for the credit company, so they come with an annual interest rate which varies from &50-&100. Several offers on these cards are available. Some cash back cards will give you a higher percentage at specific stores or if you use it frequently. This credit card is good for people who manage their finances and pay their balance in time without accumulating debts.



Reward Credit Cards

These credit cards work the same way as cash back cards except for cash back you get a rebate or a reward. The reward programs and promotional offers are different with different cards. The rewards in general include discounts, entertainment like gifts etc and gasoline rebate.


These credit cards also come with an annual fee which varies form &50-&100. These are good for people who repay their balances on time.

Bad Credit and/or Credit Repair

People are of the view that when they have a poor score due to a bad credit
history, they will never get a credit account. This is not the case. People who have bad history get several offers for
credit cards to carry out credit repair.




To eliminate your debts
you may choose debt consolidation
by debt management techniques,
credit counseling, debt
settlement or low APR on balance transfer credit cards. However, you still
need to carry a card as it is a very strong financial tool and if properly
managed can help rebuild your credit score. Following credit cards are available
to such people.



Secured Credit Cards

Collateral is attached with these credit cards. This collateral or security deposit is usually equal or greater then the overall credit amount. Collateral can be anything that has monetary value such as a car, house, jewelry, boat etc. Since they are made for the folks who are rebuilding their credit, they come with low credit lines. Fees like application fees or any other processing fee may also be included. If you are repaying on time then you can also get an increase in credit.



Prepaid Credit Cards

Prepaid or debit cards are not credit cards. They can be used just like them and where ever cards are used but they don't have any financial charges like interests. The purchases can be made only when there is enough amount of money present in the cards account. Because of this people don't incur any debts. These cards don't have any fees during transactions but monthly, startup ATM etc fees might be present.

Specialty Credit Cards

These cards are for specific purposes like for business or for education. These credit card offers are helpful for specific people.



Business Credit Cards

Business credit cards are made especially for businesses and they have many features other then the normal cards.

• Expense administration reports
• Credit limits are higher
• Extraordinary Rewards and savings
• Supplementary cards for employees
• Personal expenses are not linked with business expenses

Student Credit Cards

Student credit cards are to help
the students to build a credit history. If they
manage their finances they can start their practical life with a good credit history
and can get very good credit line deals. These credit cards usually don't provide benefits
such as cash back, rebates etc but can be of great help.



Before deciding what credit card is best for you, shop around and find out the terms and conditions that apply. Try to find out any fees that is associated with the card plus any policy due to which the company can change the APR at any time. Also find out on what factors the APR might be changed. Consult an advisor and then adopt a card. Remember it is not a fun card you can play around with. If not used wisely it will get you debts and lots of trouble.