One for Every Situation: 9 Different Types of Credit Cards You Can Get

by Susan Paige on April 5, 2019 · 0 comments

Credit cards. Financial business background.

Approximately 183 million Americans currently have at least one credit card. Are you interested in joining this group?

If you’ve never had a credit card before, it’s easy to feel overwhelmed by all the information out there about them. You probably have a lot of questions about credit cards, too.

Which one should you apply for? Which types of credit cards are best for you? How can you increase your chances of qualifying for one?

Read on to learn more about credit cards and the different types that are available to you.

1. Low-Interest Credit Cards

These cards, as the name suggests, offer low interest rates. They come in two different varieties.

Some cards come with a low introductory interest rate that increases after a certain period of time. Others come with a fixed low interest rate for the lifetime of the card.

Low-interest cards are a great option for folks who want to use a card to make a big purchase. Making a big purchase with a low-interest card gives you several months to pay the purchase off without spending a lot of extra money in interest.

2. Cash Back Credit Cards

A cash back credit card lets you earn cash rewards for the purchases you make.

Some cash back cards will allow you to earn a certain percentage of money back from each person (usually around 1-2 percent). Others let you earn a higher percentage back when you shop with certain merchants.

If you trust your ability to pay off your balance each month, you can use a cash back credit card to earn a lot of money over time.

3. Reward Point Credit Cards

Instead of giving you cash back with each purchase, some credit cards offer you reward points with every purchase you make.

When you collect enough points, you can exchange those points for things like prizes and gift cards. Some reward cards come with an annual fee, but many do not.

4. Retail Rewards Credit Cards

Many retailers offer their own credit cards.

When you use these cards, you can earn points that can be redeemed for specific services or products. Retail rewards credit cards can be a great option if you make a lot of purchases from a specific retailer, and many of them come with a lot of great perks.

Keep in mind, though, that these kinds of cards tend to have higher interest rates than other credit cards.

5. Airline-Specific Credit Cards

If you fly on a regular basis, you may want to choose an airline-specific credit card.

Airline-specific credit cards are associated with one airline and allow you to earn points whenever you make a purchase or fly with that airline.

You can use the points you earn with this card to purchase tickets for future flights, avoid baggage fees, or even get priority boarding when you travel.

6. Secured Credit Cards

A secured credit card is a great option for individuals who have low credit scores or no credit at all.

With a secured credit card, you pay a deposit up front before you can start using it. Sometimes, that deposit acts as your credit limit.

Over time, when you prove that you can make your credit card payments on time, you can upgrade to a regular credit card.

7. Student Credit Cards

Student credit cards are geared toward students who have little-to-no credit history and need help building credit.

Some student credit cards are secured cards, but others are just traditional cards. They usually have lower interest rates and no annual fees.

8. Zero Percent Interest APR Credit Cards

If the idea of a low-interest credit card appealed to you, a zero percent interest APR credit card is an even better option.

If you need to make a big purchase and pay it off over time, a zero percent interest APR credit card is the ideal card to use.

Eventually, the interest rate will increase for this card, but they often allow you zero percent interest for the first year.

As long as you pay off your purchase within a year, this is a great card to consider. You will typically need a high credit score in order to qualify for this kind of card, though.

9. Subprime Credit Cards

If your credit score is not as high as you’d like it to be, a subprime credit card is a good option. Subprime credit cards typically come with higher fees and interest rates than other credit cards.

If you’re having a hard time getting approved for a credit card, they can help you get access to the money you need and provide you with an opportunity to rebuild your credit.

Tips for Getting Credit Card Approval

If you’re interested in applying for one of these credit cards, you may be wondering if there’s anything you can do to increase your chances of getting approved.

There’s a lot of advice out there regarding credit card application approval, but these are the tips you’ll actually want to follow:

  • Don’t apply for too many cards at one time
  • Look for a card that fits your credit score
  • Consider starting with a secured or student credit card
  • Pay your bills on time and try to pay down your debt
  • Start building credit early

Consider finding a co-signer, too. A co-signer agrees to take over your credit card payments if you cannot. This can be a great option if you have a low credit score or no credit at all.

Which of These Types of Credit Cards Will You Use?

Clearly, there are many different types of credit cards you can apply for. Do any of these credit cards appeal to you?

No matter which type of credit card you want to apply for, the credit approval tips listed above will help you get access to the money you need as soon as possible.

Do you want to learn some tips on how to manage your credit cards and pay your bills on time? If so, we’ve got lots of articles that can help.

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