Types of Credit Cards

Every customer has their own demands and needs. There is no single card that fits all types of needs. So before you take a credit card understand the various types of cards that are available. Every credit card service will have its own advantages and disadvantages. Proper knowledge about these will help in the right selection of card that will suit your needs.

The most common type of card is the Standard Credit card service. A minimum payment amount is given for these cards. Whenever you make a purchase and swipe the card your credit limit comes down and when you make the payment it goes up. It’s a simple and easy to understand credit card service. At the end of every month a monthly statement will be sent to you and finance charge will be applied on the balance. Its always better to make the payment in full to avoid any kind of late fees.

Premium credit cards are another type of card. The fees and charges for these cards are higher than the regular card. Their minimum payment and other charges vary accordingly. Platinum and Gold cards come under this category of credit card service. Main difference is that these cards offer other benefits to the holders like rewards, cash back ,travel offers etc. There are many other cards under this category to suit various types of customers like student cards, travel cards etc.

The next type of card is the Charge Card. These cards do not specify any credit limit. However it requires you to pay the full amount by the end of the billing cycle. You don’t have to follow any kind of minimum payment requirements and no finance charge is applicable. However your card could be cancelled if you don’t make the payment by the end of the month depending on the agreement. Limited purpose cards are another type of credit card service. But the yare not commonly used. Gas credit cards and the Store credit cards come under this category. Such cards can be used only at the locations specifically given in the agreement. They also have minimum payment and other finance charges.

Sometimes people with tarnished credit history may still require a credit card. Secured credit cards are for these kinds of people. You will be required to pay a security deposit on the card and the credit limit is up to this security deposit. This is then just like the regular card. A similar kind of secured credit card is the prepaid credit card. The card older has to load money and only then can use the card. Every time purchase is made the amount will be reduced from the loaded amount. Only when the amount is again reloaded your credit limit will be increased. They do not attract finance charges or minimum payment amount.

The most commonly used credit card services are discussed as above. Understanding these various types will enable in a better selection of credit cards and proper usage of cards to your benefit.





The author is specialised in providing merchant processing and payment processing services. To know more aboutonline credit card payments and credit card merchant visit unibulmerchantservices.com