What is credit card and different Types of credit card

Last Updated on December 6, 2023 by admin

When applying for a credit card, you need to ask yourself some questions. This can help affect your choice of credit card provider as well know more about the credit cards, such as does the card have any Rewards.Also you need to know if the card have any Protection Policies for Card Fraud

You need to find out if the credit card will Improve your Credit Ratings,type of credit card that is right for you and how does the credit card work as well check out for the card annual fee such as interest rate and cash advance and cash limit

Intended credit card holders should check if their APR goes up when making payments on time,which Tools are available to help them manage their account and many more that will explain below.


What are credit cards?

Credit cards are financial tools that allow individuals to make purchases or access credit on a revolving basis. They are issued by financial institutions, such as banks or credit card companies, and provide users with a line of credit that they can borrow against.

When a person uses a credit card to make a purchase, they are essentially borrowing money from the credit card issuer. The user is then required to repay the borrowed amount, along with any applicable interest or fees, within a specified period.

Also a  credit card is a type of card that allows and implores people to buy items and properties without paying in cash, it lets card holders borrow funds from a pre-approved limit to pay for their purchases. Payment using credit cards is the most popular method of electronic payment. Credit card is made by a small plastic card with a good unique number attached to it, as an account number.

Furthermore, each credit card has its own unique number attached, which means that credit cards are not different in size or shape but different in account number attached, with other details attached with it, like (validity date, or code).

In addition, a credit card is a payment card delivered to users like a cardholder to let cardholder to Kay, a merchant for goods and services based on the cardholder’s risky debt.

Types of credit card


In most cases, if you’re asked what the types of credit cards are, You don’t need to stress yourself, just know that they’re referring to the credit card network. Which means the financial institution that processes the credit card transaction.

There are four major types of credit card issuer which are: American express, Discover, MasterCard and Visa.


Types of Credit Cards Available

1. Cash Back Rewards Credit Card:This offers cardholders the chance to earn cash from the money they spend, by paying back a percentage of what they spend or giving them reward points.cashback points can be redeemed on eligible purchases.

2. Unsecured Credit Card: This card is designed for people with poor credit history. you can apply for Credit One Bank® Unsecured Visa® for Rebuilding Credit,Capital One Platinum Credit Card and Petal 2 “Cash Back, No Fees” Visa® Credit Card.

3. Secured Credit Card: This is backed by a cash deposit from the cardholder and it serve as collateral on the account, providing the card issuer with security in case the cardholder can’t make payments.

You can apply for BankAmericard® Secured Credit Card,Discover it® Secured Credit Card,Secured Mastercard® from Capital One, Citi® Secured Mastercard®,UNITY® Visa Secured Credit Card,U.S. Bank Secured Visa® Card

4. Travel Rewards Credit Card: This kind of Credit Cards can help you earn rewards to put towards travel.You can also earn unlimited 1.5 points for every $1 you spend on all purchases everywhere, every time if you are using Bank of America® Travel Rewards Credit Card.. These cards are tailored for frequent travelers and offer travel-related benefits such as airline or hotel rewards, airport lounge access, travel

5. Balance Transfer Credit Card: This allows you to transfer your debt to a new credit card ideally with a lower rate.

6. Prepaid Credit Cards:This is like a gift card that allows you to spend whatever amount of money is stored on the card. Once the balance is used up, you can reload the card online or at an ATM, a participating store, or other physical location

7. Business Credit Cards:This kind of card is designed for business owners or entrepreneurs that allow them to expand and grow their business. You can apply for Business Credit Cards from American Express, Capital on Tap Business Credit Card

8. Student Credit Card:this type of credit card is assigned to college and university students who are not having any source of income. . Student Credit Cards help students build credit and assist in establishing good credit habits that can be used to create a foundation for a successful financial future.

9. Retail Card:It’s also know as store card which can be use only at a certain retailer or group of retailers

10. Gas Rewards Credit Card:This offers special rewards for purchases on gas; they can be categorized as either rewards cards or rebate cards. It also provides huge cashback while you pay for the fuel from selected gas stations.

Meet Ogbeide Frank, popularly known as perere, a blogger who loves writing about finance and Tech. He studied Business administration at the Ambrose Alli University Ekpoma and Mobile Communication at Orange College Malaysia .Frank have worked as a banker and consultant in variety of Nigeria agencies

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About admin

Ogbeide Frank loves writing and research about finance and Tech. He studied Business administration at the Ambrose Alli University Ekpoma and Mobile Communication at Orange College Malaysia .Frank have worked as a banker and consultant in variety of Nigeria agencies For Advertisement, Content marketing and sponsored post: contact : kokobest04@gmail.com
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