Could you tell me about some special types of credit cards that I should be aware of?

Some different credit card types include prepaid credit cards, secured credit cards, business credit cards, and student credit cards. Each of these have their purposes and uses.

Could you tell me more about prepaid credit cards?

A prepaid credit card is not actually a credit card in that theres is no credit being extended to the customer. With prepaid credit cards, the customer deposits an amount of money into an account, and all purchases with the prepaid credit card are subtracted or debited from that account. The convenience of prepaid credit cards is that they are accepted wherever others of that credit card type (Visa, Mastercard, etc.) are accepted. Customers with no credit or poor credit may have to opt for prepaid credit cards. Prepaid credit cards are also useful for parents to give to their children for spending or emergencies that has a hard limit.

Could you tell me more about secured credit cards?

With secured credit cards, the customer deposits an amount of money into an account and is granted a credit limit on a credit card of usually one to two times the deposit amount. Each month, the customer is still expected to pay off the balance that they accrue (as opposed to the balances directly being taken out of the deposit account per prepaid credit cards). Secured credit cards are usually given to those with no or poor credit score so that they have a chance to rebuild their credit history.

Could you tell me more about business credit cards?

Business credit cards are useful for the from owners and employees of small to medium sized businesses all the way to corporate executives in larger companies. Business credit cards usually combine great travel rewards, cash back savings, and other incentives to attract business expenditures spending.

Could you tell me more about student credit cards?

Student credit cards usually have a smaller credit limit than other types so that students who are just starting out with getting credit lines have a chance to build up their credit history for later in life. Student credit cards are useful for buying food, textbooks, other school expenses, or for use in emergencies.

What are some of the common credit card benefits that I can look for?

Usually some excellent incentives used to attract credit card customers are 0% or low introductory rates, balance transfers, no annual fees, cash back, travel rewards, reward points, and gas rewards.

Could you tell me more about 0% introductory rate offers for credit cards?

Most new credit card accounts will come with a low or even zero percent introductory interest rate to entice the customers to spend money and accrue a balance. This is a great option as long as you are able to pay off your balance once the introductory period is over on your credit card. Be aware that in most cases, interest will be accruing (at the later higher rate) during the introductory period or will be done retroactively if you do not pay off your balance once the introductory interest rate period is over.

Could you tell me more about balance transfer credit cards?

With balance transfer options in a credit card, this is a great option for consumers to consolidate their credit debt into a single account, especially if that one has a zero or low introductory interest rate. Be aware that credit card companies will usually charge a fee for the balance transfer as a percentage of the total transferred (usually around 3%).

Could you tell me more about no annual fee credit cards?

Some credit cards are free of annual fees for the first year, while other credit cards charge no annual fees ever for the lifetime of the credit account. Be aware that the credit cards with the best rewards programs and other incentives usually do charge an annual fee. You must evaluate the costs of that annual fee versus the amounts of rewards and incentives that you can earn with your credit card.

Could you tell me more about cash back credit cards?

With a cash back credit card, you will be a percentage of your total spending back in the form of cold hard cash. Some cash back credit cards will offer you different percentages in different spending categories so make sure you know your rewards plan rules. Cash back credit card programs usually require that the consumer has good to excellent credit history and credit score.

Could you tell me more about travel rewards credit cards?

With travel rewards credit cards, you can redeem points you accumulate from your spending for airline miles, free hotel rooms, or other travel related discounts and rewards.

Could you tell me more about rewards points credit cards?

With reward points credit cards, you accumulate points for the money that you spend. With the reward points, you can redeem for gift certificates, cash, merchandise, or other rewards from your credit card company.

Could you tell me more about gas rewards credit cards?

Gas rewards credit cards are a great option for frequent driving commuters since you earn a high percentage of your gas purchases and a lower percentage of your other purchases back as gas rewards.