As you begin your search for a credit card, you could easily slip into the camp that believes “one offer is as good as the next.” Nothing could be further from the truth, and that’ll never change.
It’s nice to know that there are many types of credit cards. Not only does this increase the chance of finding one that suits your every need, but it also improves the likelihood of an approval (even if you have less than stellar credit).
Here are some of the most popular types of credit cards:
Reward credit cards:
These are exactly what they sound like. You earn rewards in exchange for the money you spend. For example, you may earn one reward point for every dollar spent, which you can then use for things such as travel, gift cards, and even home goods.
Cash back credit cards:
Similar to reward credit cards, these allow you to earn cash back for every purchase you make. So, the more money you spend on your credit card, the more money you’ll earn. Tip: search for the cash back card with the highest rate of return.
No annual fee credit cards:
Some people don’t care much about rewards and cash back. Instead, they want a reliable credit card that won’t cost them any money. And that’s why no annual fee credit cards are so coveted. Are you okay with spending $100 or more per year just to carry a credit card? If not, this is the category for you.
Bad credit credit cards:
Consumers with bad credit often believe that they won’t qualify for a credit card. And for that reason, they never even start a search. While your options may be limited, that doesn’t mean you should put this on the backburner. Both unsecured and secured credit cards are available for consumers in your position.
Balance transfer credit cards:
With one of these offers, you’re able to transfer multiple credit card balances onto the same card. This allows you to manage one account, instead of several, all while saving money on finance charges. Best yet, most balance transfer credit cards come with a zero percent introductory rate. This gives you the opportunity to pay down your balance without any concerns of adding to it via interest.
While these are among the most popular types of credit cards, others could come into play as you begin your search. Don’t let anyone or anything stand in your way. Do your research, compare the pros and cons of the offers you qualify for, and then make a final decision.
Once you have the right credit card in your wallet (or purse), you’ll feel good about regularly using it. As long as you do so in a responsible manner, it’s likely that you’ll continue to use the card for many years to come.