Types of Credit Cards
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For people looking to get a credit card, it is important to note that there are many credit card products on the market. It is important to decide which type of credit card is right for you. Here are some tips.
Secured Credit Cards
Most credit cards are unsecured. You promise to pay the credit card company back and they give you a line of credit based upon on your past credit card history. However if you have no credit history or have a poor credit card history, secured credit cards are a great way to establish good credit. You usually open a bank account with the secured credit card company and depending on your account they will give you a credit card with a specific limit. This way, if you deposit $500 in the bank account and have a credit line of $500, the company does not have to worry if you default on the bill or not. They have your money in the account.
Rewards Programs
Some credit cards reward you for using their credit card with perks such as free miles, points for cash back, etc. These cards are a great way to save up miles or get cash back. However, before you sign up make sure you can use the rewards and make sure that the rewards are in a ratio that is acceptable for you to spend. You don’t want to spend $1,000 only to get back $10 in cash.
Consumer Reports – Credit Cards : http://www.reports24.com