The different types of credit cards and which one you should get
There are a lot of different credit cards out there, and it can be tough to decide which one is right for you.
But just because you have a credit card doesn’t mean you have to overspend with it. If you find yourself having trouble paying off your credit cards consider consolidating multiple debts into a single monthly payment so you can boost your score and become debt-free.
What different types of credit card are there?
Here’s a quick rundown of the different types of credit cards and who they might be best suited for:
- Cash back credit cards: These cards offer cash back rewards on your purchases, typically in the form of a percentage of what you spend. They’re a good choice for people who want to earn rewards for everyday spending.
- Travel rewards credit cards: These cards offer rewards specifically geared towards travel expenses, such as free hotel stays or airline miles. They’re a good choice for people who travel frequently or who have large travel budgets.
- Secured credit cards: These cards require a deposit used as collateral in case you default on your payments. They’re a good choice for people with bad credit or no credit history.
- Student credit cards: These cards are designed specifically for students and offer perks like low-interest rates and cash-back rewards. They’re a good choice for college students who are just starting to build their credit.
- Business credit cards: These cards offer special perks and rewards for business expenses, such as discounts on office supplies or air travel. They’re a good choice for small business owners or anyone who spends a lot on business-related expenses.
- No annual fee credit cards: These cards don’t have an annual fee, so you can save money every year by not having to pay one. They’re a good choice for people who want to save money on their credit card costs.
- 0% intro APR credit cards: These cards offer 0% interest on purchases or balance transfers for a promotional period, which can be helpful if you’re planning to make a large purchase or transfer a balance from another card. They’re a good choice for people who need some time to pay off a big purchase or balance transfer.
- Store credit cards: These cards are offered by specific retailers and can offer perks like discounts or rewards at that store. They’re a good choice for people who do most of their shopping at one particular store.
Which credit card is right for you?
So, which credit card is right for you? It depends on your spending habits and what you’re looking for in a credit card. Cash back credit cards are a good choice for everyday spenders, while travel rewards credit cards are ideal for people who travel frequently.
Student credit cards are a great option for college students, and business credit cards can be helpful for small business owners. No annual fee credit cards can save you money every year, and 0% intro APR credit cards can give you some breathing room if you need to make a big purchase or balance transfer. Store credit cards can be handy if you do most of your shopping at one particular store.
Still not sure which credit card to choose? Talk to a financial advisor or credit card specialist to get more personalized advice.