Three Basic Types of Credit Cards

Guaranteed credit cards are best for people who have trouble repaying their financial obligations in the past or those that have low credit scores. The great thing about this card is that it gives people with bad credit the chance to start rebuilding their particular credit score. Since secured cards have got higher interest rate and certain charges that do not come with traditional cards, this card may not be the best option for people who have relatively excellent credit.

Notice than a “secured” card means cardholders has to put down a cash deposit before they are able to get the card. In addition , certain charges may apply for example annual fees and higher interest rates.

Rewards Cards

Rewards credit cards are made especially for people who do most of their own spending and purchasing using a cards. People who are able to pay off their balance in full each month are the best use this type of card. Other benefits of rewards bank cards are cash backs, where the cardholders earn cash backs each time they use it to make a purchase, travel discounts or even free travel to certain destinations plus earning points for certain goods or even services.

That said, rewards cards get several drawbacks, one of which is the high annual fee. For more information on 신용카드 현금화 look at our web site.
Some annual fees are so high, it actually expenses much more than what cardholders acquire in rewards. Another disadvantage of rewards cards is that redeeming the factors earned is not as easy as one might think. Before you think of getting this type of card, be sure to read the policies of the program first.

No Interest Credit Cards

No interest card is the best strategy to people who wants to keep their credit card purchases at affordable interest rates. A single advantage of this card is that many cardholders’ payments go towards paying down their balances rather than paying for the interest. Cardholders can literally save numerous dollars in interest.

However , simply no interest credit card offers temporary rates only. As soon as the introductory period is over, the interest rate goes back to the normal APR, which is roughly between 10% to 18%, depending on the card. Additionally , once a cardholder makes a late payment during the introductory period, he will instantly be charged with increased interest rate and lose all the interest-free days he has left.