Types Of Credit Cards

Credit cards are all about buying now and paying later. With a credit card, you can buy all the things you need. You just have to swipe that credit card.

Credit cards charge a very high interest, around 2-3% a month. This is a massive 24-36% interest a year. You must be very careful when using the credit card or you could land in severe debt.

Let’s take a look at the various types of credit cards. Want to know more on Credit Cards? We at IndianMoney.com will make it easy for you. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service. IndianMoney.com is not a seller of any financial products. We only provide FREE financial advice/education to ensure that you are not misguided while buying any kind of financial products.

You May Also Watch:

Types Of Credit Cards

1. Secured credit cards

Secured credit cards are good for citizens who have a bad credit score or no credit history.  Secured cards require a cash deposit to be placed on the card. The credit limit on a secured credit card is typically equal to the deposit made on the card, but it could be more in some cases. You're still expected to make monthly payments on your secured credit card dues. If you default on the card payments, banks will recover the amounts against the deposit. With a secured credit card, you can build a good credit history and then you’re eligible for a regular credit card.

2. Prepaid Cards:

These cards require the cardholder to load money onto the card before the card is used and then spend it. The spending limit does not get renewed until more money is loaded onto the card.

The good part of these cards is that they do not have charges or minimum payments as the money is withdrawn from the deposits you have made. These cards are not actually credit cards, and they don't directly help you build a credit score. Prepaid cards are similar to debit cards, but they are not tied to a checking account.

3. Credit Cards for Women:

Banks want their female customers to get the best when they use credit cards. This is why banks offer credit cards which are specially designed for women.

These cards focus on 2 aspects very important to women. They offer shopping rewards and cash back, useful for women who do a lot of shopping.

Women who use these credit cards get bonus reward points, waiver on fuel charges, cut on insurance premiums and so on. Many of these credit cards offer amazing travel benefits to women who love to travel regularly.

SEE ALSO: What Is A Stock Split?

4. Business Credit Cards:

These cards are used for business purposes, rather than for personal use. These credit cards are great, whatever be your business. If you are a small business owner or even the owner of a larger business, you can use business credit cards for your business.

If your business defaults on the credit card, you (owner of the business) are held liable and have to make the repayments. Business credit cards offer unique benefits to business owners like cash back on purchases from certain stores, where you (businessman) are most likely to shop or a huge sign-up bonus or some travel perks.

Be Wise, Get Rich.