Different Types of Credit Cards Available
This article will help consumers understand the different types of credit cards available and consider them before selecting one type.
Let’s take a deeper look at the characteristics of each of these cards and how to figure out which are best for you right now.
What Types of Credit Cards and Payment Cards are Available?
A secured credit card is a type of credit card that requires you to put down an upfront cash deposit, usually equaling the amount of your credit limit.
Secured Credit Cards
Secured credit cards work as the first step for young adults or people who don’t have an established credit history to have access to credit. They also work for consumers with poor credit.
How Does a Secured Credit Card Work?
This type of card has a higher risk to lenders because they rely on your credit history and your ability to repay. Because you make charges against a line of credit on an unsecured card, they often get referred to as “charge cards.”
Unsecured Credit Cards
They work by providing you with a revolving line of credit, meaning you can spend up to an approved amount without making a payment within a monthly billing cycle.
How do Unsecured Credit Cards Work?
Balance transfer cards allow you to transfer your high-interest credit card debt to a card with a low introductory annual percentage rate (APR). Sometimes the APR is even 0%, meaning the card user might be able to pay off credit card debt interest-free.
Balance Transfer Credit Card
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