Around 49% of Americans rely on credit cards to cover their living expenses.
However, borrowing credit is a risky game; one missed payment could send you spiraling into debt. Luckily, there are different types of credit cards that you can choose from that will help improve your financial situation.
So, if you’re shopping for a credit card, make sure you do your research first to find the deal that’ll help you stay in the black.
Read on for a quick guide to the most common types of credit cards.
Cashback Credit Card
Cashback cards help you earn money back from your spending. Although the exact rewards vary between providers, you’ll earn back a percentage of money on each purchase you make.
They have annual fees of around $100, so these cards are best if you’re making large purchases.
Balance Transfer Credit Card
Balance transfer cards are a helpful tool to help you get out of existing credit card debt. If you have debt with a high-interest rate, you can move it onto a balance transfer card.
As long as you pay it back within the agreed time (usually 15-24 months), you can get a 0% interest deal. However, be aware that if you fail to pay it back, you could end up in a worse situation when they apply interest.
Corporate Credit Card
Your workplace will provide a corporate credit card as a way to manage your expenses. With a company credit card, you’ll be able to shop while you’re out, and the bill goes directly to your place of work rather than having to claim it back later.
If you’re an employer, you can shop for low-interest corporate cards at bentoforbusiness.com.
Travel Credit Card
You don’t need to switch your paper dollars for local currency anymore; travel credit cards allow you to withdraw local cash from ATMs around the world at no additional cost.
Many travel credit cards don’t have any additional fees or interest as long as you pay back the entire balance every month.
The financial industry designed credit-building cards to help people build their credit scores.
These cards will only give you a low-risk amount (usually around $1,000) and ask you to pay back the entire balance each month.
Store Credit Cards
Store credit cards are similar to standard credit, except you can only use credit in one specific store. Store credit cards are helpful if you need to make large purchases, such as furniture or technology.
You can put the entire balance of your item on your store card, and they’ll often offer you 0% interest as long as you pay it off within 12 months.
Types of Credit Cards Explained
That’s a whistlestop tour of the different types of credit cards available to you. Don’t settle for the first card you see; shop around, and you’ll find the ideal credit card for you!
Did you find this article helpful? If so, make sure to check out other posts for more finance tips.