Types of Credit Cards

There are a whole variety of different types of credit cards available which can make choosing the right one a very confusing experience. In order to help you decide, listed below is a useful breakdown of the various types of credit cards available.

Standard Credit Cards

Standard credit cards work as you might expect - with the cardholder using the card in order to pay for goods and services up to their agreed credit limit. Repayments are made once every month which must at least cover the agreed minimum repayment. These repayments will cover not only the capital borrowed but also the interest and extraneous charges payable upon the amount borrowed, usually referred to as annual percentage rate. Standard credit cards should not be confused with debit cards where transactions are charged directly to your current account.

Charge Cards

Charge cards work in the same way as normal credit cards with one difference, the balance of the charge card must be paid off in full every month. Charge cards are most regularly issued to either businesses or to consumers who may have had a bad credit history in the past. If you have a poor credit history then a charge card might be offered to you because the full monthly repayments would preclude spiralling debt. Charge cards are also popular with the wealthy consumer as this sort of card can offer credit practically without boundaries. It should be noted that if the cardholder does not pay off their balance once a month as required then they could incur very hefty fines.

Platinum and Gold Credit Cards

Platinum and Gold credit cards are only available to applicants who earn a certain level of annual income and, accordingly, offer a number of benefits to the cardholder which will vary from provider to provider. Higher credit limits are usually associated with these types of credit card. If you fall into a higher income bracket and have a good credit history then you will be able to benefit from the advantages that such a credit card offers.

Store Card

A variation on the credit card, a store card will allow the cardholder to make purchases with a particular retailer on a credit account. The cardholder can then effectively buy products without paying for them until a later date, when it is most convenient for them. You will often be offered discounts on the goods that you buy with a store credit card but it should be noted that the interest charged on such cards are usually extremely high. This is an area that you must be sure to look into with prudence if you are considering obtaining; you might find that the disadvantages outweigh the advantages.

Reward Credit Cards

Reward credit cards, or loyalty cards, operate in a similar way to charity cards except that the main recipient of any benefits is the credit cardholder. Incentives may include cash bonuses, points, discounts and Air Miles. With this type of credit card it is important that you think logically about the rewards being offered, and work out exactly how much you will need to spend on your credit card in order to reap the benefits.

Charity Credit Cards

Charity credit cards offer all the usual benefits of a regular credit card but also donates a particular percentage of what you spend to the charity to which it is affiliated. These charity donations are made at no extra cost to the cardholder and the card allows consumers to help a good cause simply by spending money in the way they always would. You can obtain credit cards for a whole range of diverse charities as well as organisations such as football clubs or universities.

You may freely reprint this article provided the author's biography remains intact:

About The Author
John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the http://www.directonlineloans.co.uk website.

---

Building Good Business Credit After Bad Credit

Can you establish good business credit if you have bad... Read More

Five Credit Card Billing Problems and How to Fix Them

It goes without saying that your first and best defense... Read More

Grants, Loans, Free Credit Cards And Credit Repair: The Whole Truth And Nothing But The Truth

You got creditors calling you everyday. You could lose the... Read More

Triple AAA in 30 Days

Have you ever wonder about how to get good credit... Read More

Using Credit Cards Wisely

"I think money was stolen from my card" or "I... Read More

Identity Theft Exploding: Here?s How You Can Avoid Becoming A Victim

Americans are more concerned about identity theft than unemployment or... Read More

Credit Education

Having credit education is like knowing how to read. It... Read More

Credit Score: The Brightest Feather In Your Financial Cap

Credit scores are the most important aspect that determines your... Read More

Manage Your Credit Wisely

Getting your first credit card is a big deal and... Read More

How You Can Help Prevent Identity Theft

How can I prevent Identity theft from happening to me?... Read More

Keep Your Credit History Clean - Remove A Negative Credit Record From Credit Report

The three major credit bureaus, Experian, Equifax and Trans Union... Read More

Trade Credit: How to Determine if You Should Offer Net-30 Terms to Your Customers

What is trade credit?One of the major differences between consumer... Read More

5 Ways To Raise Credit Score

It's not as hard as you think to raise credit... Read More

Student Credit Cards

STUDENT CREDIT CARDS With graduate debt averaging... Read More

Its Your Credit - Take Care of It!

Thanks to the Fair and Accurate Credit Act, American consumers... Read More

Top 7 Factors to Consider While Reviewing Credit Card Offers

Credit cards have migrated from being hip or convenience product... Read More

Credit Help for Real Estate Financing: Five Categories of Your Credit Score

1. Payment History -- 35%The number of accounts paid as... Read More

What You Should Know About Credit Counseling

Credit counseling is a free service that many people with... Read More

The Exact Action To Take When You Find Errors In Your Credit Report

There are times when you may be turned down for... Read More

What is Credit Card and Debit Card Blocking?

Have you ever been told you were over your credit... Read More

When You Are Eligible For A Free Credit Report

By Federal law, you are entitled to one free credit... Read More

Identity Theft ? Who Would Want Mine?

With all my bills who would possibly want my credit?... Read More

Five Debt Negotiation Facts

These five debt negotiation facts along with a few debt... Read More

Cash Back vs. Rewards Credit Cards

Ah, the sweet rewards of using credit!Not only do you... Read More

How To Get a Low Interest Credit Card

Consumers often have the first credit card that they ever... Read More

Why Is It important!

Your credit is the most important thing you have other... Read More

Credit Repair Scam - How To Avoid Being A Statistic?

A good credit history is critically important for the consumer.... Read More

Credit Enhancements: Seven Tips For Enhancing Business Credit Transactions

What are the avenues available to businesses with weak credit... Read More

Beginners Guide to Credit

I remember back when I was 18 and completely oblivious... Read More

Credit Scores and Loan Applications

Keep Your Credit History Clean - Remove A Negative Credit... Read More

Credit Traps Snag Consumers

Nearly 20 years ago I worked for a small consumer... Read More

Fixing A Credit Report

Fixing a credit report starts with seeing what's on it.... Read More

Rebuild & Keep Good Credit Ratings by Understanding Your Credit Cards

Secured Credit Card is similar to a prepaid credit card... Read More