If you are thinking about applying for a credit card, it’s understandable if you are confused by all of the available options. Different types of credit cards have different features, and some will be a better fit for your needs than others. The following overview of the most common credit card types can help you make an informed decision.
1. Low-Interest Credit Card
Many credit cards have special rewards programs where you can earn money, travel rewards, or something else just by using your card to buy things. But not everyone is interested in or needs those things. Some just want a simple card with the lowest interest rate they can possibly get.
Excite Credit Union offers a no-fee Visa Platinum with a remarkably low-interest rate. You can enjoy a 0% introductory rate for the first 12 months and then continue with one of the lowest interest rates in the industry. The card also includes complimentary travel accident, auto rental, and roadside dispatch insurance.
2. Cash Rewards Credit Card
A common rewards credit card type is a cash rewards credit card. These cards reward you with cashback bonuses when you buy things with your card. You could earn money just by filling your gas tank, buying groceries, or buying something else.
Excite Credit Union offers a no-fee Visa Cash Rewards credit card where you earn $1 for each $100 that you spend. The rewards can add up quickly if you use the card for your daily purchases. You will enjoy a 0% introductory rate for the first 12 months and complimentary travel accident, auto rental, and roadside dispatch insurances.
3. Travel Rewards Credit Card
Are you someone who has the travel bug? Perhaps you dream of visiting new places and having new adventures. If so, a travel rewards credit card may be a good option for you.
These cards are similar to cash rewards cards, except instead of earning money for your transactions, you earn points that you can redeem for airline tickets. A travel rewards credit card can help you pay for part of your dream trip!
Excite Credit Union offers a Visa Travel Rewards card that awards up to 3,000 bonus points if you make $300 worth of purchases in your first 60 days. You then earn one point for each $1 purchased with the card. There are no annual fees and a 0% introductory rate for the first 12 months. Plus it comes with complimentary travel accident, auto rental, and roadside dispatch insurance.
4. Secured Credit Card
Everyone starts life without a credit score or history. And some would like to improve their credit scores so they can qualify for a mortgage, a personal loan, or something else. A secured credit card can help you either establish or improve your credit, and you can qualify for one of these cards without a credit check.
The way secured credit cards work is simple. You make a deposit with the lender who issues the card for the amount of credit you desire. For example, if you want a card with a credit limit of $500, you deposit $500 with the lender.
Your deposit acts as collateral, and it will be refunded to you when you close the account. Your lender will report your timely payments to the credit reporting bureaus, which will help your credit score.
Excite Credit Union offers a Visa Secured credit card with low-interest rates and no credit qualifications. You can establish an account with a minimum deposit of only $500. And enjoy complimentary travel accident, auto rental, and roadside dispatch insurance.
5. Business Credit Card
Business credit cards work the same as regular credit cards, except they are intended for small businesses instead of individuals. They can be used for many different business needs including:
- Office supplies
- Office equipment
- Lunch for a client
If you are a small business owner, a Visa Business credit card from Excite Credit Union is a great choice. This no-fee card allows you to earn 1% cashback points, which can add up fast. It has a low introductory APR for the first nine months and also includes complimentary travel accident, auto rental, and roadside dispatch insurance.
6. Student Credit Card
Student credit cards operate like regular credit cards, although they may have lower credit limits. The requirements to qualify for a student card are usually the same as regular credit cards, except students may have to show proof of enrollment.
Because of the similar qualification requirements, either an Excite Credit Union low-interest or rewards card can be used as a student credit card. Another option to consider is a secured card for students who are just starting out in life and haven’t yet established credit history.
7. Store Credit Cards
Credit cards offered through stores work the same as regular credit cards, except with one important difference. They offer discounts for the products you purchase through the store. Stores offer these cards to encourage shoppers to buy more products from them.
An important negative of store cards to consider is that they often have higher interest rates than other credit card options. These cards only make sense if you know you will be purchasing a lot of merchandise from a particular store and you will be paying off your statement in full every month.
Choosing Among Various Types of Credit Cards: Which Is Right for You?
At Excite Credit Union, we offer our members a variety of credit cards so you are bound to find one that fits your needs! If you are unsure which one to choose, contact us to learn more.
If you are thinking about applying for a credit card, it’s worth your time to check out the rates offered by credit unions. Because they are non-profit organizations, credit unions usually offer better rates than banks that are focused on earning a profit. Credit unions are also known for their excellent customer service.
Check out the following article to learn more about the differences between credit cards from credit unions and banks.