Types of Credit Cards

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Credit cards are available in different types. Here are the commonest types of credit cards.

Standard credit cards: Issued to any person above 18 years of age, this is a kind of general purpose cards with revolving credit lines. Individuals seeking for this type of credit cards are only required to meet the requirements determined by the issuer. No minimum credit card is required.

Reward cards: It is a type of credit card that comes with added perks such as discounts, points or even cash. However, because of these perks, there may be restrictions, limitations and complex rules on this card. It is available in different kinds depending on the perks offered.

Secured credit cards: It is a kind of pay-as-you-go credit cards in which the users are charged annual fees and interest rates. Holders of this type of card are required to deposit certain amount of money when the account is opened. It is the amount deposited that determines the credit line which is normally about 50 to 100% of total deposit made. Some issuers give holders the option of switching to standard credit card or any other suitable kind of card.

Specialty credit cards: These are kinds of credit cards that are offered through affiliations, service providers, major brand retailers and partnerships.