Credit cards play a very important role in today’s life. Credit cards are issued by a credit card company or a bank and they will send you a monthly bill of your transactions. As a credit card holder, you will be liable for paying all or part of your balance to the credit card company each month. Some of the credit cards will allow you to carry a part of your balance into the next statement period.
There are 5 different types of credit cards available in the market. Read on to know more about them:
Secured Cards: People who have a bad credit history or no credit history at all can take help of these secured cards. These secured cards are similar to that of general credit cards. However, in case of these cards, you must make a fully refundable deposit, either by cash or by sending a check. This deposited amount is considered as your credit line. As a result of this deposit, all the secured cards offer guaranteed approval.
General Credit Cards: A very common type of credit card is the general credit cards. Such credit cards don’t require any kind of security deposit and can be used in most stores/shopping malls or to make any kind of purchases.
Charge Cards: These cards are very similar to the general credit cards. However, the major difference lies in that fact that unlike general credit cards, you will have to pay your total balance in full every month.
Store Cards: These cards are similar to that of credit cards. However, these cards can only be used to buy goods at the store that has given you the card. Macy’s Credit Card is a good example of store card.
Co-branded credit cards: These cards are same as general credit cards. But these cards have a "special relationship" with a particular organization or retailer. So, if you purchase goods/items from those particular organization or retailers, then you will be able to extra rewards and benefits. However, these cards can be used in other stores as well. A good example of such a card is Amazon.com credit card.