Discover the Unbelievable Benefits of Different Types of Credit Cards

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How do you make multiple purchases without carrying the very same amount of funds? Why with a credit card, of course. This banking card is an excellent financial tool that aids in financial purchases. Not only does it allow you to make purchases of large value as an alternative to carrying cash, it also has the benefit of collecting reward points. Although this is a popular financial tool, very few individuals know about the different types and their benefits.

Here are the different types of cards and the benefits they provide:

Regular Cards:

These are your standard type of cards that are available from most banks. The best benefit of this type of card is easy availability. Normally, this type of card is unsecured, meaning you are allowed to spend borrowed funds without the need to put down any security. You can get a lot of introductory offers and deals with these cards. These cards normally have a fixed low interest rate for a certain period of time, after which, the interest rate increases. This allows the card holder to make large purchases, with a long repayment period. You can even transfer a high interest credit card balance to this low interest rate card.

Reward Cards:

With this type of credit card, the card holder can earn incentives with each purchase on their card. These incentives are in the form of points, which is stored on the card. These points can be redeemed for selected items. These items can be expensive, but with the reward points, they can prove to be sufficiently cheap. The incentives that are included here include general reward points, cash back offers and more. It also includes reward points for certain ventures like retail, gas and travel. You can also have separate cards for each of these ventures with additional rewards.

Specialty Cards – Co-Branding:

The specialty card is normally offered through affiliations or partnerships with certain major brands or service providers. They also include a partnership between organizations. Normally, when you make a purchase with these cards, you receive the services that are specially customized for the customers of that brand or a member of a certain organization.

Airline frequent flier card:

If you are a frequent flier, you can always use this card to purchase your flight tickets. Normally, a general reward card will allow you to redeem points for airline purposes, but with this type of card, you get even more benefits. A general airline frequent flier card will allow you to collect points. These cards are normally co – branded with a specific airline, thereby allowing you to earn exclusive benefits with that airline.

Now that you know the different types of credit cards, be wise enough when making any financial purchases and do make the most of it.

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