A credit card simply put is a card given by a financial institution to a bank customer (also known as borrower) to make purchases by borrowing funds. The funds borrowed can be employed to a plethora of uses such as the payment of goods and services. The premise upon which a credit card is issued is that the cardholder has the liquidity to pay back to the bank not only the original sum borrowed, but also any other additional charges that may be incurred on the use of the card.
The credit card embodies the trust that sits at the heart of banker-customer relationship. There are no collaterals needed in order to obtain a credit card. The obligation to repay and proof of liquidity is often times what is needed in order for a credit card to be issued.
There are many types of credit cards, and often times a customer is confused as to which would best suit his needs. There are several factors one must take into consideration before choosing a credit card, of which the most notable is the type of credit the customer intends to have. In the following paragraphs, we will be examining the various types of credit cards their uses.
Bearing in mind that the financial needs and capacities of individuals differ, there are many types of credit cards that are available to all manner of persons to suit a variety of needs. This article seeks to discuss the various forms of credit cards that are available for customers today.
2. Reward Credit Cards. A reward credit card is a type of credit card that offers rewards when you use the credit card to make purchases. The rewards could come in form of Cashback or points which can be redeemed at any time. You also have travel reward cards which are beneficial to frequent travelers and can be used to obtain cheaper airplane tickets or hotel room rates.
Cashback cards are the most popular type of reward cards though people prefer to have points awarded to them which can be redeemed at a further date.
4. Student Credit Card. College students are not left out when it comes to credit cards as there are special credit cards formulated for university students. Student credit cards are granted on the premise that college students have little or no credit ratings. It would work more for students who are first time applicants of credit cards. Student credit cards come with a whole lot of added benefits such as low interest rates, but to be entitled for a student credit card, a student should have obtained admission to study a four year course at a recognized university.
4. Co-branded Credit Cards. These are special cards issued jointly by a financial institution and a retail merchant. It is used as a means to encourage consumer spending at the partner retailer's outlets. The major benefit of having a co-branded credit card is that it offers rewards to loyal customers at selected intervals.
5. Secured Credit Card. This is a form of credit card that is offered to people with no credit or bad credit. In order to be eligible for a secured credit card, there must be a security deposit placed on the card. The security deposit would be in a sum directly proportional to the amount of credit being offered,
6. Subprime Credit Cards. This form of credit card is offered to applicants with bad credit history, whose interest rates are also high. The fact that it is approved quickly shouldn't belie the fact that the terms surrounding this type of credit card is often vague.
The credit card embodies the trust that sits at the heart of banker-customer relationship. There are no collaterals needed in order to obtain a credit card. The obligation to repay and proof of liquidity is often times what is needed in order for a credit card to be issued.
There are many types of credit cards, and often times a customer is confused as to which would best suit his needs. There are several factors one must take into consideration before choosing a credit card, of which the most notable is the type of credit the customer intends to have. In the following paragraphs, we will be examining the various types of credit cards their uses.
Bearing in mind that the financial needs and capacities of individuals differ, there are many types of credit cards that are available to all manner of persons to suit a variety of needs. This article seeks to discuss the various forms of credit cards that are available for customers today.
2. Reward Credit Cards. A reward credit card is a type of credit card that offers rewards when you use the credit card to make purchases. The rewards could come in form of Cashback or points which can be redeemed at any time. You also have travel reward cards which are beneficial to frequent travelers and can be used to obtain cheaper airplane tickets or hotel room rates.
Cashback cards are the most popular type of reward cards though people prefer to have points awarded to them which can be redeemed at a further date.
4. Student Credit Card. College students are not left out when it comes to credit cards as there are special credit cards formulated for university students. Student credit cards are granted on the premise that college students have little or no credit ratings. It would work more for students who are first time applicants of credit cards. Student credit cards come with a whole lot of added benefits such as low interest rates, but to be entitled for a student credit card, a student should have obtained admission to study a four year course at a recognized university.
4. Co-branded Credit Cards. These are special cards issued jointly by a financial institution and a retail merchant. It is used as a means to encourage consumer spending at the partner retailer's outlets. The major benefit of having a co-branded credit card is that it offers rewards to loyal customers at selected intervals.
5. Secured Credit Card. This is a form of credit card that is offered to people with no credit or bad credit. In order to be eligible for a secured credit card, there must be a security deposit placed on the card. The security deposit would be in a sum directly proportional to the amount of credit being offered,
6. Subprime Credit Cards. This form of credit card is offered to applicants with bad credit history, whose interest rates are also high. The fact that it is approved quickly shouldn't belie the fact that the terms surrounding this type of credit card is often vague.
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These are just a couple of the co-branded credit cards that are available there, and if you desire to find out more you can get in touch your bank for more information. Debit Card Programs are widely available nowadays.
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