Consumers have many options for credit cards today. These include store cards, rewards credit cards and unsecured card. For people with bad credit, there are options. Learn which credit card type is right for your needs. Each card comes with a number of perks. Make sure you carefully read the terms of your new credit cards to get the most out of them.
Rewards credit cards
Rewards credit cards are a popular way to get money back on your purchases. These cards give you cash back as well as points and travel miles. You can receive a significant amount of money back as long as your balance is paid off each month. Many reward creditcards offer generous welcome bonuses and many other features. They also have cost-saving purchase protections. These cards are subject to higher interest rates than other types. To determine which rewards card is right for you, it's important to understand your financial situation and spending habits.
Customers with excellent to great credit ratings are best candidates for rewards credit cards. These cards can come with high annual fees that can make it difficult to earn any rewards. A rewards card should be suited to your spending habits and not too costly.
Unsecured Credit Cards
Unsecured cards have greater spending limits and are more flexible than secured cards. They do not require a security deposit. You can also have credit limits as high as thousands of dollars. For an unsecured credit card, you will need to have a steady income source and clean credit. You will also have to pay the bill in full each billing cycle, otherwise you will incur interest.
An unsecured credit card may be available to you if your credit rating is fair or poor. The credit scoring model you choose will determine what your fair credit score is. It can be anywhere from 580-669. But it's possible to raise your credit score to an acceptable level by responsibly managing your credit.
There are many types of unsecured credit card options. There are cashback cards, student cards and travel rewards cards. An unsecured card could work for you depending upon your spending habits.
Store credit cards
Credit cards for stores are revolving lines which you can use to buy at the shop. These cards are provided by banks in partnership with retailers. These cards are convenient for consumers, because you can use them anywhere that accepts credit cards.
While store credit cards may seem like a good option to build your credit, they have some drawbacks. They usually have very low credit limits. You can only use $300 to $500. It is easy to spend too much in one day. Although store credit cards are useful for first-time credit card customers, they can easily harm your credit history.
One drawback to store credit cards is the restriction that they can only be used at stores where you have a credit account. They generally offer a 5% discount on all purchases. Some also offer rewards dollars to make future purchases easier. Some store credit card companies also have memberships to payment networks like Visa or Mastercard.