Are There Different Types of Credit Cards?

Editor’s note: This is a guest post written by Chris Philp

There a vast array of different types and kinds of credit card available in the marketplace today. Searching for a ‘credit card’ online brings up a huge list of offers, each, with a number of benefits and rewards. If you are searching online though, you should be sure to check the differences between each card to ensure you find the right card and type of benefits for you.

Standard credit cards

When applying for a standard credit card, the applicant and provider both determine the appropriate fixed credit card limit. The balance for the card can be paid as soon as you’ve used your card. In order to avoid incurring any charges, balance repayments should be made within your interest free period. You can however, if willing to incur the agreed interest fee charges, spread the payment over a period of time. The minimum repayments for the card must be paid in order to avoid penalties and further charges.

Travel reward cards Rewards cards, such as travel rewards cards, include benefits specially designed to suit the spending needs of frequent flyers or travellers. Credit card providers often have relationships with other companies in order to provide the card holders special benefits from membership reward programs. These benefits can allow you to earn rewards points as you spend. Points can be redeemed in order to pay, or go towards paying for flights with a number of different global airlines. Some cards are also linked to specific airlines and partnered companies, often giving the card holder other rewards to benefit from.

Charge cards

As charge cards do not have pre-set spending limits, they are regarded as more flexible, allowing card holders to determine their limits based on their spending habits. Anything spent is expected to be repaid each month as agreed by the provider’s terms and the cardholder. If card holders have a remaining outstanding balance on their card, a fee is charged. This fee is typically a percentage of the overall remaining outstanding balance. So remember, if you’re searching online for credit cards, make sure you take the time for find the best and most appropriate type of card for you. Applying for credit cards online also affords applicants the benefit of applying out-with bricks and mortar opening and closing times. Sites like American Express offer a number of benefits and rewards, so why not see what’s available to you.

About the Author: Chris Philp of iProspect ( has written a number of articles about credit cards and finance, and is an active blogger and guest writer on a number of sites.

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