Types of Credit Cards

There are many types of credit cards which are used by different types of customers and account holders. Mostly business personnel use credit cards which are convenient in their use and which suit businessmen. Similarly students would use student credit cards and a layman will use general purpose cards. There are some most used types of credit cards. For example Interest Credit Cards are mostly used by businessmen and company CEOs because there is a charge of interest if credit card payment has not been annulled in time.

Another important and commonly used type of credit cards is those in which 0 APR (Annual Percentage Rate) is charged as its introductory price similarly cash cards are also used which are just like cash but in the form of plastic card. It is because the cash card holder has paid the cash price of that card and he can use it as cash now. In this card the annual percentage rate is always zero and it is used by millions of people around the globe.

There is another kind of credit cards which are called Payments Card. A payment card is one with which a person can make the payment of something and they are also widely used in the business field and in different areas of financing. American Express Credit Cards is another type of credit cards these American cards are used almost all over the world due to their world wide acceptability. And they are acceptable almost in every area of the world. In some types of credit card the interest rate is very low as compared to general interest rate applied in normal credit cards and these types of cards are called Low Credit Cards. Low rate credit card is mostly used by those who can’t bear the price of interest charge so it is a facility for them to use the low rate card for their convenience.

These are some major types of Credit Cards:-

  • Secured Credit Cards
  • Travel Credit Cards
  • Rewards Credit Cards
  • Bad Credit Credit Cards
  • Airline Credit Cards
  • Business Credit Cards
  • Cash Back Credit Cards
  • Instant Approval Credit Cards
  • Low Interest Credit Cards
  • Student Credit Cards

1. Secured Credit Cards:

Secured Card or Secured Credit Card is a sort of credit card in which the card is secured with some deposit by the card holder. In a general sense the credit card holder must deposit between the 100% to 200% amount of desired credit and in this way the credit card is secured. It is because after depositing an amount the chances of bad credit history become low as compared to unsecured credit cards hence credit card secured by using the deposit from the credit card holder.

These secured cards are used and provided by the card issuers due to the fact that if the credit card holder has a bad credit history or he makes an intentional attempt to delinquent credit cards secured against his fraud.

The secured credit card holder is expected to make the regular payment of its usage of cards and in most circumstances the card holders make the regular payments. So these secured credit cards help the credit card issuers and banks to get the payment in time as compared to the payments of unsecured credit card.

An account holder in some bank can make an application for the secured credit card and after the secured credit card application has been approved he can use his bank secured credit card now for different modes of payment up to the secured deposit which he has deposited in the bank. Similarly an application can also be submitted for unsecured credit card and after the approval of unsecured credit card application a person can use his unsecured credit card.

If a person does not make his due payments within 180 days then usually the rules of secured credit card apply and the bank or credit card issuer can freeze the account of the card holder. There is another type in which the card is not secured with any deposit but a guarantee has been given for the payment and that is called Guaranteed Unsecured Credit Cards and it is mostly used by the companies for their employees. These cards are also useful for those people who can’t make regular payments by using unsecured credit cards or unsecured credit card debt. In this way these cards are very helpful for these people also.

Most terms and conditions are described in the form at the time of issuing the secured credit card in the application form. And an account is opened after the signature on the agreement by the applicant. Secured cards are less expensive to those card holders who have bad credit history than unsecured cards.

2. Travel Credit Cards:

A travel card is like having cash with us everywhere and that cash is acceptable almost every part of world. And we don’t need to convert the cash after going to conventional money exchange centers. And travel credit cards are offered for this purpose to the travelers and tourists. They are easy to use and the tourist and traveler can also earn different types of points and rewards on these cards on every purchase. And afterwards he can use these travel rewards in his tour or he can take back these rewards in the shape of cash.

Hence a travel credit card also serves as travel reward card and a tourist or traveler can use this travel reward which he gets from different ways in his shopping and in air mile discounts. The best travel credit card which has travel credit is either travel MasterCard or Travel Visa cards because of the fact that American Express Travel credit card is not acceptable everywhere in the world.

Most ATM machines have the MasterCard and Visa Card logos so it is easy for the traveler to use these cards and get rewards if he’s using travel reward credit card. He can simply use these rewards later on in his journey to get points or to get discount.

There is another type of travel credit cards which are available for business personnel and executives of different companies to use them in their travel. And these cards have special features for such prestigious people around the world. These cards are well known by their name Travel Business Cards. And traveling while someone has these travel credit cards in his pocket is the best credit card travel or at least if not best than it is one of the best ways to use these cards.

Though express card which is backed by American Express Card system is not acceptable all over the world but it is acceptable in major parts of the world and in almost all free countries so it is not a bad choice even to use this card. But its acceptability is not as wide as Visa or Master Cards.

Many travel credit card providers also offer credit card travel insurance to their credit card holder however this insurance doesn’t apply to their cardholder when he has reached his destination but some credit card providers also give this facility and a travel credit card holder can find these types of card providers for a safer journey.

In this way travel credit cards work and there is another plus points in these travel credit cards and that is their acceptability in some major and famous money exchangers. This can help the traveler if he needs to have cash in liquid form. Then it is another opportunity for him to use his travel credit card because they are acceptable to currency exchangers so a traveler does not need to look around for the ATM machine in this case.

3. Rewards Credit Cards:

Different rewards are given on different types of credit cards which are provided by either credit card companies or banks. These types of reward cards are called reward credit cards. In the past not every company of credit card provider was offering this types of credit cards but now almost all credit card companies and banks offers credit cards with rewards. Though there is a classification for each type of credit card.

A reward credit card functions in the same way as other type of credit cards perform their functions but on a reward card different types of bonus and honorariums are given which are called reward and these credit rewards can be used in getting discount or getting some cash back or in some other ways. Reward cards are being offered now by almost every major credit card provider and bank. And these cards work in very simple way. Whenever the card holder makes a transaction by using a reward credit card he would get some points and this will be called credit card reward which is given to him on the usage of reward credit card. On each transaction credit card reward is given in most cases. Later on these rewards can be used in getting some discount or some cash back on purchases.

After some transactions has been taken place through reward credit cards now a card holder can use his credit card rewards which he has earned by using his credit card in different ways. He can get some discount from shopping, or he can also get some cash back or he can win some gifts and prizes through these rewards as well. Wherever the rules of reward credit card apply, credit card holder can use his credit card rewards there.

For example if someone is using American Express Reward Credit Card then he can earn some American Rewards by using this card. Almost every reward card is good in its usage. But some reward credit cards have really earned the reputation in the minds of customers. And these are Visa Reward Credit Cards, MasterCard Reward Credit Cards, & American Express Reward Credit Cards. In these brands many types of reward credit cards available, depending upon the status and income group of the card holder. And a person can choose the best reward credit card from these brands which is suitable to him and his pocket.

Having these reward credit cards is not only helpful but it is also a good source of enjoyment. And it provides a sensation of security and conformability in the mind of the card holder.

4. Bad Credit Credit Cards:

Credit cards come in different types and for different class of people. So there is a type of credit card which is available for those people who have bad credit repute. And these cards are called Bad Credit Credit Cards these are credit cards for bad credit people.

Almost every famous group of credit card provider offers such cards to its bad credit card holders. And these people can use bad credit cards in their transactions. So a person can use credit card with bad credit and he can get a credit card from credit card providers. But he just needs to apply for that type of credit card.

People apply for bad credit cards because of the fact that their credit rating has been decreased from the required level. And they face credit cards bad credit so the credit card providers restrict them and they cannot use their credit so frequently because of having defaulting behavior. So many companies offer cards for bad credit people and these cards are offered to the different income-groups and different types of people.

People can come out from the situation of credit cards with bad credit after they focus and determined to come out from such situations. Following factors are most important which makes a person and compel it to use credit cards with bad credit. These are failure to make payments in time, failure to pay house hold bills, rents and another important reason is their postal location. Hence they can use these types of cards to make their necessary payments and they can use credit cards for bad credit.

They just have to apply for these cards and bank or credit card providers will consider his case before issuing him a bad credit credit card. Bad credit credit card can be used up to the limit which is specified in the agreement which has been signed by the credit card holder. If a person has increased his credit rating then he can use his credit card bad credit to gain a secured credit card and he can also make bad credit consolidation while he’s doing this thing.

In this way he can use his bad credit card and it will help him to regain his repute and his credit history would be better than before provided he must use these cards with a realistic approach. He can also get rid from the credit card for bad credit people in this way if he would manage his bad credit credit card very well. It does not need a specialization to do so but the card holder must use his bad credit credit card with common sense and he must not indulge himself in useless activities and purchases.

There is another type of bad credit credit card available that can also help the card holder and he can obtain that type of card if it is a right selection for him and this type is called Unsecured Bad Credit Card. And by using this card he can improve his credit history.

5. Airline Credit Cards:

Air line credit card or air line card is a type of credit card which is used by those people who travel frequently through different air line services. These cards give them different opportunities. Airline cards are not only useful in traveling through air but they also give different facilities in shopping and purchasing to the traveler.

Every credit card provider company and different types of financial services providers and banks as well offer a wide range of credit cards and in those cards one can choose a card from the best air line credit cards which is most appropriate to him in his traveling. Airlines credit card can be used in different ways, a card holder can get free air miles by using the card and these miles are called credit card airline miles which the card holder earned by using the airline card.

Different airline services also offer their own cards with the cooperation of credit card providers. e.g. Alaska airline provides airline card with the corporation of different credit card providers and this type of card is called Alaska Airlines Credit Card.

There is another type of airlines credit cards and these cards are used to get some miles by using the credit card. They are specially designed for those who travel frequently and upon using these cards they get free air miles and on air miles card a card holder can get up to the 5000 free air miles. Some cards are solely offered as air miles cards and they are typically for those people who travel too much in a single week. Almost all companies offer airline miles credit card but 2 international brands are most famous they are Visa and MasterCard airline credit cards. When a person uses these brands of cards he not only get free mileage but he also get a bonus upon crossing a specific limit and there are also free miles upon approval of the card. Hence he can use credit card airline miles in his journey later on.

The packages for airline miles card vary from card to card depending upon the nature and class of card, e.g. some air miles cards have low annual percentage rate while on the other hand some other cards have higher annual percentage rate as compared to first type of cards.

Similarly the annual program fee for each card is different depending upon the credit line of the card. And almost all air miles credit cards can be accessed online easily by the card holder.

6. Business Credit Cards:

Among all types of credit cards the business credit cards are those cards which are used by most of the people after the general purpose cards. Anyone can make a business credit card application by person or online to get a business credit card. After the approval of application different terms and conditions can be finalized by the applicant about his business credit line on which he gives his signature. As soon as this agreement has been finalized the credit card issuer registers the card holder in their data.

Business credit cards are not only good for business personnel but they also help them to get some other facilities which a lay businessman doesn’t have.

Credit card business is done by almost all the major credit card providers in the world. And MasterCard and Visa are 2 brands which are leader in this business. Citi Business Credit Card is also one of these brands which are running most successful business in credit cards. If an individual or the company goes into the state of business bad credit then in this case grace period is also offered to that company of individual for a certain time so that he can come out from the crisis.

Business credit cards are not offered only to giant business entities but these cards also come in other dimensions and for small business these are small business credit cards. And an account holder of business credit card can check his business credit report online 24 hours in a day. This is one of the most entertaining facilities given by the credit card providers.

Credit card small business type is one of the most successful industries in the small business and in the banking sector because there are not many giants group but there are lots of people who have small businesses. Many banks make a business credit card offer to their regular customers who already have businesses and using credit cards. And these banks also give the facility of using business credit card online. These offers gave a boost of small business cards.

A person who is looking for a small business credit card can search for search card online and he can also make a proper analysis of each card to select a card which is most suitable to meet his business needs. After selecting the small business card of his choice he can correspond with the concerned credit card provider online and he can also apply for getting that card at the spot. The processing of small business card is fast and he would get cards with in the minimum possible time. This is the fastest way to get a small business credit card. In fact, in this way the applicant can also save his time by making an application for small business credit card online. Many companies offer zero APR as an introductory price on small business cards. So an applicant can take this benefit easily.

7. Cash Back Credit Cards:

A cash back credit card users have to deposit some amount of cash in their credit account in order to get a certain amount of cash discount. The typical obligation that these cash back credit cards put on their card holders is to make use of the card to buy or make payments for the objects that are sold by related organizations or companies. When a credit card is used to buy items of these partners then the cash back points or discounts are awarded to card holders. Several cash back credit cards do not offer cash but they hand out gift certificates that can be exercised to get objects from partner organizations.

When patrons need extra advantages from credit cards they will seek for the best cash back credit card available in the market. Out of all the rewards presented by different company’s credit cards to the customers, cash rewards are the most attractive one like cash back reward credit card. Many individuals think that the best cash back credit cards one would get is %5 cash back credit cards. These cash back cards generally have set rules and standards. The 5% cash back credit card offer the cash back reward which is normally valid for certain elected commodities. Customers can also go for 2% cash back credit card which doesn’t enforce too much limitation. The business credit card with cash back can work in similar way. Different reward can be given to different sorts of credit.

The cash back business credit card provides the cash back rewards that are very appealing. Cash back credit cards will pay back a percentage of the cash used for office purchases of a small business. Through a business credit card, cash back can be introduced after doing purchases for business, depending on the policies placed by the credit card provider. There are numerous business credit cards with cash back potential, but users have to discover which ones are appropriate for their business.

8. Instant Approval Credit Card:

Almost the major companies of the world in credit card fields provide instant approval of their credit card but there are still some flaws in the credit card instant approval process. Credit cards instant approval is not a problem in developed countries but problem lies with under develop countries or developing countries. In general terms as soon as a card holder uses his credit card he gets instant credit card approval from the credit card machine after his credit card has been processed.

Generally the ATM machines and credit card machines apply credit card instant approval method within seconds but there are some machines which really make the card holder worry because their timing of processing of card is longer than normal and they also reject the card sometimes. Such functions of instant credit cards make them easy and user-friendly to their customers and card holders. On the other hand if an instant credit card shows some problems then it is really irritating for the card holder and he wants to slam his head into a wall.

Due to these facts mentioned above the instant approval credit cards are replacing themselves against those cards which don’t give fast approval so now in the recent time everyone is looking for instant approval credit card.

Now the modern development in IT and E-commerce sectors has made it possible for the credit card applications to give credit card applications instant approval, this is the great opportunity which was never offered before.

In these way instant approval credit cards help customers and card holders in many ways and make their transactions fast but there is another cost in these transactions and that is the transaction charges of using the credit card and this is considered one of the worst things in credit cards system. But if a person can make the rational use of his credit cards then he can overcome this problem.

9. Low Interest Credit Cards:

There are many types of credit cards available nowadays. In these credit cards on some cards the interest charges are lower than other cards this low interest credit is a facility for the card holder especially for those card holders who can’t afford a higher rate of interest on their credit cards. And a person can use and obtain the low interest card if he can’t afford the credit card with normal interest rates. Now many companies offer low interest credit cards. It is very simple to apply for low interest credit card and a candidate can apply for it online or he can apply in the written form after the approval of his application low interest credit card will be issued to him.

Low interest credit cards are helpful to customers and card holders in many ways. Their transaction charges are also low than other credit cards and credit card low interest makes it easy to pay it back thus the customer does not get a very heavy burden of the interest by using low interest rate credit cards.

Hence credit cards with low interest are in the favor of customer rather than the issuing company or bank. And a card holder does not have to pay back the high percentages of interest on his credit.

Companies offer different credit cards low interest rates on their different cards depending upon the pocket situation of the customer and upon his choice to choose a credit card with low interest. By making a deep analysis and different reviews a person can select a low interest rate credit card for his use. It is possible to get and apply for these cards online.

These low interest cards are helpful in using as well and when a person uses these cards he uses them with a sense of comfort and ease. They are not like other cards that when a person is thinking to use them he thinks twice before using his credit card only a single time. And these credit cards low interest goes in the favor of credit card holder but companies also take good benefit by issuing these types of cards to their customers.

10. Student Credit Cards:

Student Card of Student Credit Card is a new way for students to use their money. Many types of student cards are available from different credit card companies and many banks also offer student credit cards for the convenience of students and for expanding their business of student credit cards. These types’ students’ credit cards are available for the student of different levels. For example there are cards available for university students and college credit card is for those students who are studying in colleges.

These credit cards for students are helpful for them in getting their books in time and to use their cards whenever it becomes necessary for them as it is a best way to keep money with them without any fear of stolen because it is backed by high security and a student can freeze his credit card with just a phone call if it is stolen. Credit card for student is now in use and the first thing for which students look when they go to the new university is the option of credit card for students.

Now almost every student in develop countries is using this option and using plastic money in the shape of students credit cards. This is not only helping students but it is also expanding the business of credit card providers and due to this reasons now credit card providers are issuing students credit card with different packages, e.g. there are different ranges of cards for university and school students while college student credit card is issued to the college students.

In the present times students credit cards are mostly use because they are the most moderate credit cards among other student cards and credit cards student like to use these cards due to their moderation.

There is another benefit of using student credit cards and that is the option of making student loan consolidation or school loan consolidation by using the student credit cards of the students. And this option is very useful and it is highly supported by the students and their parents.

Normally the introductory APR in student credit cards is zero and that attracts many students to gain a student credit card.

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