Financial decisions are the life blood of an economy. One wrong financial decision may cause tones of troubles. The root cause of this problem lies in the choice of appropriate credit cards. Credit cards help in the flow of credit. They are the main stay in generating revenues to the credit card companies, banks and retail sale showrooms. But now a day, credit card market is over flowing with varied varieties of credit cards which makes choosing the right cards an extremely difficult task.
The new varieties include the offer cards, cash bag cards, gasoline cards, reward programmed cards etc. Knowing about the personal needs and matching with the right credit cards is the pre-requisite in this process.
Some credit cards and their attributes are described below
- These are no specific cards but credit cards with some general rules which can be matched up with some introductory offers and life time low rates.
- They differ in their sizes, styles etc. But credit cards offering 0% interest for six months for new customers is not a common sight.
- A balance transfer in this case allows you to change the old credit cards into a new one and if you use this card with 0% balance transfer for a specific time period then no interest needs to be paid until this period ends.
- So these types of cards are termed as introductory cards.
Life time low rate cards
- These cards feature contrast attributes as compared with the introductory offers which might turn on to high rates at the expiry of the introductory period but these offer preferential low rates throughout the life of the credit.
- It is a general phenomenon these life low rates to tracked to the standard and offer a discount of X% below that rate.
- If you think of buying a long term credit card then life time low rate credit cards are the best option.
Cash back credit cards
- After the completion of some specific transactions, with the help of your credit card you will be entitled to a certain amount of cash back.
- These are appropriate for a user who uses heavy credit cards as they offer something in return.
- Cards offering 3% cash back on al l purchases are a common sight. But simaltanei9ously some cards may offer 3% on special items like gasoline but merely 2% on all other purchases.
- Looking into the present credit card usage and analyzing the most common way of using the card would the yard stick to measure the ideal card matching the requirements.
Rewards programme credit cards
- These also exhibit similar features to that of cash back credit cards but instead of cash back they offer points or discounts.
- Generally the points are granted for every dollar one i.e. spent and until a certain limit one is able to get the repayment of these points.
- Gasoline cards are gaining popularity s due to hike in the price of gas.
- Numerous cards offer point on purchase of gas and these points relate to discount against gas purchases. If the minimal amount needs to be spent before receiving free gas but if purchasing gas for your card is routine business then a gas card is a most appropriate one.
- These are the cards for which a security deposit is a pre requisite.
- The credit limit is offered in proportion to the security deposit.
- These are appropriate for people who have very limited credit records or who have had some problems with credit in the past.
- These cards need not to be accompanied by a security deposit and have very few features.
- They offer credit limits higher than the secured cards but lower than the premium cards.
- These cards (Gold, Platinum, and Silver) offer very huge credit limits and exhibits some extraordinary features like product warrantee travel insurance or emergency services etc.