If you are considering a credit card, be aware that there are many types of credit card available today. Shop around and get the best deal you can. Don’t forget the obvious—whether or not you can get a good deal on a credit card depends almost entirely on the quality of your credit rating. Below are a few of the types of credit card offers.
0 APR Credit Cards
APR stands for annual percentage rate. It is how credit cards measure the interest they charge—and how much using the card will cost you. Some companies, as a promotion, offer zero APR credit cards. These cards do not accumulate monthly interest charges for any purchases the card user makes for the duration of the card’s introductory and promotional period. This introductory period typically lasts for around a year, but can last anywhere from six to over fifteen months. Once the promotional period is over, your card will revert to normal interest rates.
Low Interest Credit Cards
With low interest credit cards, cardholders accrue smaller than normal monthly interest charges on any purchases they make. Be sure you read the fine print, though–the low interest rate may only apply during the introductory period. This period normally lasts for around a year but can last anywhere from six to over fifteen months, similar to 0 APR credit cards.
Rewards Credit Cards
Some credit cards offer rewards programs. Rewards programs are set up so that if you use your card, you get perks. The perks can include discounts, gifts, gasoline rewards air miles, and more. One of the most popular rewards is frequent flyer miles. Credit cards linked to frequent flyer miles add miles to your frequent flyer account or accounts every time you spend money, and can help you earn a free trip faster than you otherwise would. Each time you make purchases with frequent flyer credit cards, you are awarded frequent flyer miles with the air carrier linked to the card.
Business Credit Cards
Business credit cards are necessary if you wish to avoid commingling your business and personal transactions. They are useful when filing your taxes, as they tell the IRS you are serious about your business. The detailed statements help you to itemize your expenses more easily. Many credit card companies will even give you with a year-end summary with all your transactions itemized and categorized according to US federal tax categories. Why worry about a stack of receipts when you can organize your expenses with a business credit card?
Secured and Prepaid Credit Cards
Did you know there are special credit card offers for people with lousy credit? Secured and prepaid credit cards typically do not require you to be making a massive income. In fact, you pay money in advance as collateral, so you don’t have to prove any income at all. These cards are a great way to rebuild your credit if your credit has been damaged by poor payment history, bankruptcy or any other blot on your credit score.