What Types of Credit Cards and Payment Cards are Available?

Credit cards are a significant part of how we purchase goods and services in the United States. They provide an easy way to pay for items without having cash on hand, which is especially useful when traveling or shopping online where you might not have access to your bank account or wish to carry cash.

What Types of Credit Cards and Payment Cards are Available?

Each of these card categories has distinct traits and, depending on your financial situation, some of these credit card types will be more advantageous for you than others.

Secured Credit Cards

This cash security deposit helps protect the credit card company from recognizing a loss by issuing you a credit card and failing to receive payments.

How Does a Secured Credit Card Work?

Often, 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.

Unsecured Credit Cards

Unsecured cards, the most common credit card type, often represent what people want when applying for a new credit card. Unsecured credit card options rely on expenses hitting a line of credit extended to you in advance.

How do Unsecured Credit Cards Work?

Unsecured credit cards represent a standard financial product available through banks, credit unions and other service providers.

Balance Transfer Credit Card

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.

SWIPE UP FOR MORE ABOUT What Types of Credit Cards and Payment Cards are Available?