Everyone can own a credit card, but not everyone is capable of managing it properly, leading to loss of money and several major problems. If we like to get the most out of these products, it’s important to learn which type better suits our needs. In this list, you can figure out which one you like the most.
These are the old school credit cards we all know and love. These won’t earn you rewards or anything and are super easy to understand. On these, you can spend money to a limit, which is then available when you make a payment. Minimum monthly payments are mandatory to avoid penalties.
These give you rewards for every purchase you make with them. There are three main types of rewards: cash back, travel, and points. Although some people prefer cash or points to make free purchases, travel cards are the most popular on this category.
These are the most double-edgy of them all. Although they don’t have a preset limit, every dollar you spend with these will have to be paid at the end of each month. Charge cards do not have minimum payments and aren’t easy to get, as you’ll need an excellent credit history to even obtain one.
These aren’t even real credit cards and won’t improve your credit, as the money is loaded directly from your deposit. Consider these as some type of debit card, the only difference is that these aren’t linked to any checking account.
Having a credit card is an awesome choice if you’re trying to save some money down the line while being financially prepared for anything. Knowing the differences between them will automatically teach you how to use them better, and under what circumstances is smarter to use one or the other.