Different Types of Credit Cards

Credit cards, credit cards, credit card. Everybody has been talking about it and so many people even own it. Some are for personal use and some are for business use. Family members have it. Students also have them given by the parents. Working adults use them to make purchases in many products. Some people even sign up as many as possible in order to get the freebies, vouchers, discounts and contests.

In order to clear this confusion, you will need to know the different types of credit cards available in the whole wide world.

Let’s take a deep look at each of them.

Regular Credit Cards
The first one is always the most common one in introducing everything. Regular credit cards are the ones used by most users for personal use. If you already have one and do not know what type your credit card you are holding, it is probably a regular credit card. Remember the promoters who keep asking you to sign up for new credit cards? They are offering you a regular credit card.

Secured Credit Card

This is the type of credit card being issued by the bank or credit union that is fully secured by the consumer’s own money. Consumers who have no or poor credit may be able to attain a secured credit card in order to build their credit back up. For example, a user may deposit RM500 in to the secured credit card. RM500 is the limit the user gets.

Reward Credit Card
This type of credit card usually rewards you for using the credit card to make purchases in whatever products. It may either be collecting points or cash rebates. Some people apply for credit cards particularly for this reason. It benefits both buyers and also sellers. While buyers are collecting points, sellers are getting goodwill from the customers over and over again. A good example would be using credit card at petrol stations and collect points at the same time.

Student Credit Card
Students nowadays are truly well treated. Not to mention teachers can no longer scold or yell at them, but the parents today simply become happier by providing them the best things, including credit cards. However, not all student credit cards are provided by the parents. Many vendors today understand the need of students today and have provided a way for them to spend first and pay later. This is why student credit card is so popular.

Prepaid Credit Card
Do not want to get in to debts? Now there is a type of card called the prepaid credit card. It is a card that has fund put on it before it can be used. It is very common nowadays and people who use this type of credit card are usually the people with poor credit history.

Business Credit Card
This is the card issued to the corporate managers, executives and employees in order to keep up the business expenses separate from personal charges more easily. Business credir cards will usually have different interest rates depending on the values the vendors offer.

Now that you know the types of credit cards there are in the industry. This gives you a better idea on what type you want to apply in the future.

Use credit cards wisely and make the most out of it without having to live in debt.

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