Owning a credit cart entails great risks. Some providers may not even be helpful when you’re choosing the type which fits you best. This is because of the profit that they can possibly earn if you get the riskier card types. Make sure, then, to know the card that best fits your lifestyle. Doing so will save you from huge card debts in the future.
Student Cards
A student doesn’t need a card that has a high credit limit. Having one might only lead them to purchase things that are unnecessary and expensive. In fact, polls show that students graduate with an average debt balance of $7,000.
If you plan to get your college student a card, give them one that has a lower credit limit and fewer incentives than most personal cards. The last thing you want is to have them spend lavishly on clothes without you knowing.
Debit Cards
Unlike usual credit cards, a debit card’s credit limit depends on the money you deposit on it. The credit is prepaid, so no credit limit is imposed. This also means that debts are not possible, since you have paid for everything that you are about to purchase with your debit card. This card is perfect for those who cannot control their shopping impulses. You don’t have to worry about that bill afterwards because you have already paid for what you have shopped.
Business Cards
As a rule, business owners must always own a business card. It works in the same way a personal card does. Having one will let you separate your business and personal transactions, allowing you to keep track of your business’ progress better.
Another reason why businesses should have a business card is because of the bonuses and incentives that are exclusive to this type. Rewards are usually offered by credit companies for such cards.
Incentive Cards
Incentive cards are usually offered by companies to loyal customers or clients. The more times you purchase services or products, the more points you get. A certain number of points will allow you to avail of a service or product usually for free. Such cards are usually supplemented by personal cards.
Low Interest Cards
One of the more popular types of cards for personal users are low-interest cards. Usually, interest rates for low interest cards are as low as 1% to 0% a month. Some of them even allow transference of balance, where you can transfer your balance from a higher interest card to this low interest card.
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