Consumers have many options for credit cards today. These include rewards credit cards, unsecured cards, and store cards. People with poor credit have other options. Learn which credit card type is right for your needs. Each card comes with a number of perks. Be sure to carefully read the terms and condition of your new card in order to get the most benefit.
Rewards credit cards
You can get cash back with rewards credit cards. These cards allow you to earn cash back or points as well as travel miles. As long as your balance is paid each month, you can earn a substantial amount back. Many reward creditcards offer generous welcome bonuses and many other features. They also come with cost-saving purchase coverages. These cards can have higher interest rates that other types of credit cards, however. You should consider your spending habits and financial situation before you decide which rewards card you want.
Customers with excellent to great credit ratings are best candidates for rewards credit cards. They can also be costly and could reduce any rewards earned. A rewards card should be suited to your spending habits and not too costly.
Unsecured credit cards
Unsecured credit cards are more flexible and have higher spending limits than secured credit cards. They require no security deposit and can have credit limits of up to thousands of dollars. You must have a stable income and clean credit history to be eligible for an unsecured card. Otherwise, interest will accrue.
An unsecured credit card may be available to you if your credit rating is fair or poor. Your credit score will vary depending on which credit-scoring system you use. A fair credit score could be between 580-669. Responsible credit use can help raise credit scores.
There are several types of unsecured credit cards available. There are cashback cards, student cards and travel rewards cards. A secured credit card could be right for your needs, depending on how you spend.
Store credit cards
The store credit cards are revolving credit lines you can use for purchases in the store. These cards are offered by retailers in partnership with banks and encourage customers to pay for items today and pay them off over time. Because these cards can be used anywhere that accepts credit cards, they are very convenient for consumers.
While store credit cards might seem to be a great way to build credit, they do have some disadvantages. The first is that they typically have low credit limits. The maximum amount you can spend is usually $300 to $500. It is easy to spend too much in one day. While store credit cards are convenient for those who have never used credit cards before, they can quickly damage your credit history.
The only problem with store credit cards, however, is that you can only use it at the store where you have a store credit card. They generally offer a 5% discount on all purchases. Some also offer rewards dollars to make future purchases easier. Some store credit accounts are also members of payment networks such Visa and Mastercard.