Some many brands, so many offers and these mystical APR rates...how is anyone supposed to tell the difference between little rectangle pieces of plastic that allow us to spend 'slightly' beyond our means?
What Are The Different Types of Credit Cards?
The are a few main types of credit cards that you need to know about. Each type of credit card has its own benefits, so depending on your lifestyle it is pretty easy to pick the type of credit card that works best for you. Like most semi-important things, the first step is to think about the reason why you want a new credit card in the first place.
0% Purchase Credit Cards
If you're thinking of making a big life purchase like a holiday, furniture or even a TV, a 0% Purchase Credit Card might be perfect for you.
They allow you to spread the cost of what you are buying over months without paying any interest on the money you’ve borrowed.
Reward Credit Cards
If you spend a lot every month, a Reward Credit Card could be perfect for you. This type of credit card gives you back rewards just for using the card when you go shopping. With Reward Credit Cards you usually get cashback, travel miles or shop discounts every time you tap or swipe.
Balance Transfer Credit Cards
If you have a credit card that you have already maxed out & you are paying interest on, a Balance Transfer Credit Card might be ideal for you.
Most people use balance transfer credit cards to reduce the amount of interest on an existing credit card.
You can usually transfer your existing credit card balance onto your new balance transfer credit card.
Credit Builder Credit Cards
If you have a low credit score and want to build it back up then Credit Builder Credit Cards can help!
They usually have pretty high interest rates so make sure you can pay the balance off in full every month before you get one of these, so you don't get trapped in a debt death cycle.