So, you’re ready to get a credit card. Now, what? That question seems to occur regularly when beginning your credit journey. In a world where we are constantly bombarded with advertisements for credit cards that have a myriad of benefits and components, how can you possibly know what they are and where to begin? We are here to give you some general information on some credit card types you should familiarize yourself and help you think in the right direction for choosing the perfect credit card for you.
Student Credit Cards
Everyone has to start somewhere, right? To graduate from money novice to credit connoisseur, you need to build your credit score foundation with a line of credit. For many, a student credit card is the perfect method to achieve this goal. These cards are designed for students enrolled in a 4-year university who have had little opportunity to establish credit so they might begin their own credit history. Other benefits include education for students on smart spending tricks and certain rewards programs geared towards college student needs.
Cash Back Credit Cards
Cash back credit cards are fairly self-explanatory; when you use your credit cards, you can earn cash rewards on specific purchases (gas, groceries, dining, etc.) The cash back varies from credit card to credit card, and also depends on the purchases you make. But, who doesn’t love free cash, right? Be careful! While rewards are always appealing, you want to read all the fine print of the agreements and restrictions. There can even be limits on how much cash back you can earn, so you want to have all the details to get the most out of this type of credit card.
Balance Transfer Credit Cards
These cards are perfect if you are looking for a way to switch from a high-interest credit card to one that better suits your needs. You could save a significant amount of money by getting away from cards with interest rates in the double digits, even in just one year. There are even times when credit card companies will provide a $0 transfer fee, saving you even extra cash. Having this break from high interest rates can help you get back on track with your smart spending and pay your bill in full and on time, leading to an increased credit score.
Low Interest Credit Cards
These cards are good for the same reason as a balance transfer credit card: for avoiding a high interest rate. Don’t be tricked by the name, however. These cards offer a low introductory rate that will increase after a certain amount of time. That does not mean that selecting a low-interest credit card isn’t the right move for you. This is the perfect credit card for those who need to purchase major, allowing for several months to pay off the purchase with little to no interest. Just read all of the introductory information and terms to avoid any unexpected charges or surprises! Being a credit connoisseur means being cognizant of all details of your credit cards.
