Credit Card Types And How To Know The Best For You

Choosing the right credit card, you?ll be able to maximize your card benefits without getting into debt.

Which One Suits You Best? Credit Card Types ?

Low Interest Credit Card ? If you?re interested in having a credit card only so you can pay for emergency expenses when you run out of cash, this is the best type of card for you.

Reward Credit Card ? Every time you swipe your credit card, you get to enjoy an equivalent number of points depending on how much you?ve spent. The points you?ve accumulated can later be on exchanged for various prizes.

Airline Miles Credit Card ? This is a type of reward credit card that offers only airline miles as rewards. When you use this credit card to purchase your plane fare, you?ll be able to enjoy reward miles. Later on, you?ll be able to use them and get discounted plane fare or fly for free even! The same rule applies for gas credit cards.

Student Credit Card ? Credit card companies have lately been designing credit card offers exclusively for students. Although accompanied with higher interest rates, these cards often have funky designs and offer special reward programs developed primarily to provide maximum enjoyment for students. Proof of schooling is often required. It helps if you?re enrolled in an accredited school and you?ve got great grades.

Secured Credit Card ? If you?ve got bad credit, there?s still a chance for you to own a credit card?but only if you?re okay with having a secured one. This type of credit card requires you to make a deposit on your bank account and serves as collateral in the event that you fail to pay off your credit card debt. Your credit card limit may equal or be more than the amount you?ve deposited.

Prepaid Credit Card ? This isn?t a credit card per se, but it generally works like one. The limit of this card will depend on how much you?ve deposited in its account. You can?t spend more than what you?ve deposited. Its main difference with a secured credit card is that secured credit cards can have greater card limits beyond the value of its deposit.

Business Credit Card ? This works just like any other conventional credit card only with a few additional perks that make it extremely suitable for business use. A business credit card can automatically separate personal expenses from business expenditures, facilitating monthly tallies for your taxes. It can also provide expense reports for your business, special rewards for your business, and allow you to provide supplementary cards for your employees. You can also choose to modify the credit limit of your employees if necessary.

If you don?t get to pay off your credit card debt, you know what will happen to your home, don?t you? This works like a secured credit card, but only this time you?re using your home as collateral. Home-Secured Credit Card ?

This is a great way to salve your conscience if you feel guilty about your materialistic tendencies. Every time you purchase something using your credit card, a small amount of your money will be donated to the charity being sponsored by the credit card company. Think of it as shopping for a cause.

Charity Credit Card ?

Visa Student Credit Cards: Plastics With Lessons

The answer is none, and this is precisely why visa student credit cards are so popular and addictive. When you're 18, beautiful, and restless, what could be headier than vast spending power at your fingertips?

With visa student credit cards, college students can easily swipe their merry way into a mile-wide list of purchases.

The Benefit
Visa student credit cards are highly popular because they're handy. You can use them to pay off student loans, for example, or gas up your convertible. You can use them to buy groceries, articles of clothing, furniture, and even plane tickets! Statistics show that the average college student owes at least $60,000 in student loans payable. Because no part-time job pays this much in a year, or even in five years, visa student credit cards are typically seen as manna from heaven.

The Catch
Even manna from heaven, however, comes with a catch. Consider this scenario. You are a student. You like something. You take out your credit card and swipe away. You go home crowing with glee over your purchase. If you think the story ends here and this way, you are sadly mistaken. Many college students forget that credit and payment go hand in hand. They buy and conveniently forget that what they take now, they would have to pay for later.

The fact that visa student credit cards grant their owners huge purchasing power only makes it worse. You would find it so much harder to restrain yourself from charging this and that.

Swiping Responsibly
If you are among those with visa student credit cards, make sure you avoid falling into debt by doing the following:

1. Pay on time.
If you have plans of moving, notify your credit card provider so they can update your contact information for you. Credit card bills frequently get lost due to errors in addresses. As much as possible, do not fall behind your payments. Some providers charge as much as $30 for late payments. Additionally, they bump up interest rates, too, if you miss one payment too many.

2. Do not ask for extra credit.
Extra credit will only lure you to borrow more. What you should do is look for visa student credit cards that come with a restrictive credit line. A restriction on your credit line, ranging from $500 to $4,000, will discourage unnecessary purchases.

3. If you don't want a restrictive credit line, why not secure a secured credit card instead?
The best thing about a secured credit card is that your credit limit hinges upon your savings at a certain bank. So, you never end up spending money you do not have.

4. Do not go crazy over cash advances.
Cash advance interest rates are typically higher. If you think they have the same rate as your swiped purchases, think again.

The ultimate purpose of your visa student credit card should be to rescue you in times of need, not push you into huge debt. Visa student credit cards should work for you, not against you.