Types of Credit Cards
- December 26, 2016
- By: Greenpath Financial Wellness
Did you know that there are different credit card types? Here’s a guide to a few of them:
General Credit Cards
- General-purpose cards are issued by banks and other lenders. You get a bill once a month. If you don’t pay off the whole balance, you are charged interest.
- Premium cards offer extra perks, like cash back or airline miles. They may have a higher spending limit and lower rates than other cards. But they often require a higher credit score and higher income.
- Secured cards require a deposit. The spending limit is based on the deposit amount. They can be help you start or improve a credit record.
- Store credit cards can be used only in a certain store or group of stores. In general, they have higher interest rates.
- Affinity credit cards give a percentage to a charity or nonprofit. These cards usually have fees.
Other Types of Credit Cards
- Charge cards are the same as credit cards, except they must be paid off every month. They sometimes have a yearly fee.
- Debit cards are tied to your bank account. Money comes out of your account as soon as you buy something.