Credit cards are a great way to get the things you want without having to pay for them all at once. But there are many different types of credit cards out there, each one suited for a specific purpose. So if you know what kind of card you need, then you need to compare Credit cards to find the right one.
No Annual Fee Credit Cards
You’re looking at a pretty simple option regarding no-annual-fee credit cards. These cards don’t require any kind of annual fee or other ongoing charges, so they’re great for people who don’t want to pay anything extra on their credit card bills. However, if you’re someone who likes the idea of getting rewards for using their card (like cash back), then this type of card won’t be helpful for you.
Some credit cards, as Lantern by SoFi experts, say, have “No credit check to apply, no annual fees, and no minimum security deposit.”
Balance Transfer Credit Cards
Balance transfer credit cards are good for transferring high-interest-rate debt from one account to another. For example, if you have a credit card with a 24% APR on your balance and want to consolidate your debt onto another card with a 2% APR, you can use a balance transfer credit card.
This type of card is also good for saving money on interest payments by transferring other types of high-interest rate debt like store cards or personal loans into a lower-rate credit card.
Cash Back Credit Cards
Cashback credit cards are the most popular type of credit card. They offer you a percentage of your purchases back in cash. Some cashback credit cards have a minimum cash back threshold, which means you must spend a certain amount before you can earn cash back.
Rewards Credit Cards
Rewards credit cards are designed to offer you a reward for using your card. These rewards can be redeemed for merchandise, travel, or cash back. In addition, some rewards cards offer points that can be earned as you spend money on eligible purchases.
Secured Credit Cards
Secured credit cards are a great way for young people to build credit. Once you’ve made a deposit, which is usually anywhere from $200 upwards (and sometimes can be as low as $100), the card issuer will issue you a card number and start reporting your activity to all three of the major credit bureaus. If you use it responsibly, this will help you build up your score over time and eventually qualify for other types of credit cards.
Student Credit Cards
Student credit cards are a great way to build credit. As young adults, you’re likely to have less income than an older person. However, you can still get the same benefits from a student credit card.
Student cards typically have low limits and don’t have many perks, but they can help you establish good financial habits that will benefit you in the future, as well as provide some protection against fraud or identity theft—a huge issue for students who might not be as careful about protecting their personal information online.
This article has helped you to understand the various types of credit cards available in the US. However, there are many different features to consider when choosing a credit card and to know which type best suits your needs will help make the process easier.