News

Types of Credit Card You Might Need

Credit cards are a great way to build your credit and make purchases. However, many different types of credit cards serve different purposes. For example, if you’re looking for a new card or considering canceling an old one, it can be helpful to understand what types of credit cards are out there to know what you need. 

Secured credit card

A secured credit card requires a cash deposit, which functions as collateral for the account. You’ll need to open an account with the amount of money you’re willing to put down. Your card limit will be equal to your deposit. This is beneficial because it allows you to build credit and pay bills on time without borrowing money from someone else first (unlike unsecured cards).

SoFi experts explain, “You can set up auto-pay right away, but if you want to make a one-time payment, you can do so anytime in the app.”

Balance transfer card

A balance transfer might be worth considering if you have high-interest credit card debt. Balance transfers allow you to transfer the balance from one credit card to another, usually with a lower interest rate. This can help you consolidate your debts into one monthly payment on the new card and pay off your debt faster. 

However, these cards typically charge fees for the service—so before applying for one, it’s essential to carefully check the terms and conditions of any offers.

Store credit card

A store credit card is issued by a company that’s not a bank or credit union. It can be used as a payment method at that particular store and related businesses, but they’re typically not accepted anywhere else. Some think these cards are more like gift cards than credit cards since they don’t offer any borrowing power and are only helpful within their specific brand.

Credit cards with 0% intro APR

A credit card with a 0% intro APR is an excellent option if you want to pay off large purchases or debts while avoiding interest charges. You can use this card to make all your purchases, then pay them off in full when the introductory period ends (usually after six months). If you have an existing balance on your credit card and want to get rid of it, this is another option.

Student credit card

Student credit cards can be an excellent way to build your credit history if you have no or little credit history. That’s because student credit cards are often issued by the same banks that offer regular credit cards, giving you an opportunity to start building your credit history when you’re young. A student card will typically have low limits and fees.

Business credit cards

Business credit cards can be a great way to get a business started. They can help you build credit, save money on purchases and travel, and earn rewards. If you want to start your own business or are already running one, consider getting a business credit card.

If you are considering applying for a credit card, there are many things you need to consider. First, consider the kind of credit card you will get and whether it will help or harm your financial situation. Then look at what features are available on the card before deciding. Finally, check out other types of cards that might suit your needs better than what’s available through traditional banks!

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button