Different Types Of Credit Cards And Who They Are Made For
Credit cards are an important piece of the financial stability puzzle in the United States. As a matter of fact, chances are that as you read this article, you already have one or two credit cards in your pocket. These days, because of the overwhelming competition in the credit card industry, there are more offers than one could have imagined even 10 years ago. There has been categories created for different credit card products that do different things. Below, you will find a list of the most prominent types of credit cards and who they are designed for!
Secured Credit Cards
Secured credit cards work a lot like standard credit cards. They are pieces of plastic with information on the front and back that connects the consumer to the debt account. However, secured credit cards do have one specialty. These cards are designed for consumers who have limited/no or bad credit history. They require that consumers place a security deposit with the bank before using the credit card. This security deposit is the reason that the card type got the name secured credit cards! Consumers with limited/no or bad credit history who properly use their secured credit card for a year will notice an enormous increase in their credit score! Therefore, secured credit cards are designed for those who would like to build or establish credit.
Balance Transfer Credit Cards
The next type of credit card that we will discuss is balance transfer credit cards. Balance transfer credit cards are yet another specialty card that works just like a regular credit card. However, balance transfer credit cards give consumers a very unique ability. Consumers who have balance transfer credit cards can use them to transfer balances from high interest rate credit card accounts to the low interest balance transfer credit cards. These credit cards are generally designed for those with good to excellent credit who would like to have a lower interest rate!
Sky Miles Credit Cards
Another neat type of credit card is the sky miles credit card. Sky miles is a reward product name. Therefore, sky miles credit cards are specialty rewards credit cards. Generally, with sky miles credit cards, consumers have the ability to earn points with each purchase. These points are allowed to accumulate and when the consumer has enough of them, they can be redeemed for great rewards such as airfare and baggage claims. Generally, these cards are designed for consumers with good-excellent credit and enjoy traveling!
Rewards Credit Cards
Because there are so many different types of rewards credit cards, I decided to put them all in one last section here. Rewards credit cards allow consumers to earn points with each purchase just like sky miles credit cards. When the consumer earns and accumulates enough points, they can be redeemed for rewards. Generally rewards cards fall into the following categories cash back, gas, travel, sky miles and gift cards. Occasionally, lenders will offer different types of rewards as well. Rewards credit cards are designed for consumers who have already made their way to good or excellent credit that want more from their credit card!