With so many credit card companies as well as credit cards on offer from each provider, it can be difficult for people to understand which one will suit them, their needs and their desires. Understanding the difference between the types of cards will go a long way toward helping you make an informed decision on which credit card to apply for.
Normal Credit Card
Most standard credit cards give card holders a fixed credit limit. When paying back balance due, credit cards generally have a minimum repayment agreed. If card holders repay their balance each month in full, no additional interest charges will be accrued. Credit cards are great for every day and small items, allowing people to pay for things in a safe and convenient way. Credit cards can also come with a range of benefits and rewards schemes that holders can make the most of.
Credit cards and charge cards share a lot of similarities, though charge cards do not have a preset spending limit. While charge cards don’t have a spending limit, they do require card holders to repay their outstanding balance in full by time agreed by provider and card holder.
The Amex Platinum card is one example of an excellent charge card package. Platinum cards from Amex offer a range of benefits, exclusive to Amex card holders. These benefits and rewards can go some way to saving money and making the most of payments for things you may already be getting, such as gig and events tickets. Platinum cards are not always as easily accessible as standard credit cards and generally require a different set of criterion for applicants to fulfil.
Travel reward Cards
Travel rewards card again share many similarities to standard credit cards. Travel rewards cards however, have a range of benefits, specifically designed to meet the needs of frequent flyers and travelers. Many travel rewards cards are linked to international frequent flyer schemes as well as specific airlines. Other benefits include bonuses, travel rewards points,
Knowing the different types of credit cards available should help you, so be sure to consider and research the benefits of each credit card and the different types before you make your decision.