TYPES OF CREDIT CARDS AND HOW TO CHOOSE THE RIGHT ONE
In the saturated market of credit cards and credit card providers, it’s hard to know where to start. Samuel L. Jackson? Alec Baldwin? Jennifer Gardner? There are too many actors and too many commercials to count. This article aims to cut through the celebrity fluff and to help you find the credit card superstar your wallet deserves. You can use the following resource to explore cards that work for all score types. They work for scores below 600, and can include amazing rewards like cash back, no annual fee, travel rewards, and more!
THE BARE-BONES
The most standard type of credit card that will be available to the broadest range of users are called “plain-vanilla” cards. They earned the nickname because you guessed it, they’re basic. Yes, they offer no rewards but are generally straightforward and not complicated to use. They come with a set credit limit with a minimum amount due every month. Simple and minimalistic.
THE BIG SPENDER
The charge card will usually be reserved for those with great credit. This card is particularly attractive because it has no limit, but the catch is that it needs to be paid off in full each month. That’s a tall order for most, which makes it a situational card and not the best choice for everyone.
THE CREDIT BUILDER
The secured card option is a great route for those with no credit or checkered credit history. It requires a security deposit but still functions as a credit card with a minimum payment each month. It’s perfect for those looking to build or repair their credit score. Balance Transfer credit cards are a great option since these credit cards often offer a low or 0% introductory APR for balance transfers.
THE SUBPAR
Geared towards people with bad credit and little options, the subprime card is one of the worst available. Yes, they will approve you quickly, but that usually comes with very high-interest rates and other less than ideal terms for the user. It may be a last resort for some, and caution is advised.
THE YOUTH
A great option for first-time applicants, the student credit card is designed for young adults who may not have the credit history needed for most other types of cards. Some other benefits include a low-interest rate and rewards, but generally, the applicant must be enrolled in an accredited school or university to qualify.
THE CRÈME OF THE CROP
Ahh, rewards cards. What if I told you that you could earn free money for spending money? Its name speaks for itself. With a plethora of rewards like cash back, travel points, and credit points, these credit cards give you the most bang for your buck. The only caveat is that you will need a decent credit score to qualify.
THE WRAP
So, there are a billion credit cards out there, all with their perks and drawbacks. Finding your perfect match will take some research and will be partially determined by your credit score. The best option is always going to be with the card that does the most for you and your situation, but you’re going to need the credit. So, take the time and steps necessary to get your score respectable so you can start reaping the benefits of a card that gives you the most.
