The Different Types of Credit Cards

The introduction of credit cards has altered the dynamics of world business to a huge extent. Nowadays you do not have to have money to actually buy something. Making buying power independent of immediate liquid cash has to lead to greater consumer consumption and spending. There are various types of cards that give the owners a range of limits, benefits, rewards, offers and deals.


These are the most frequent kind of these that are given out by most banks. Standard credit cards are generally used by most customers for personal expenses and are generally of two types, balance transfer card and low-interest card. The balance transfer by this is generally provided to customers to allow them to move their high-interest outstanding balances in several other cards into one single debt with low interest. Some companies even offer a 0% interest rate to start with. However, customers will need to be careful when taking up such offerings and make sure they understand all the requirements well.

The low interest of them is generally used for those people intending to make big purchases e.g. while setting up a home. The interest rate on those shoots up after a couple of months, therefore customers can save some cash by making purchases at very low prices, in comparison to the EMI’s or bank loan interest rates they might need to pay.


Premium Credit Cards are those which are given out to a select group of customers in a specific income bracket along with a fantastic credit history. Gold and platinum cards are the best example of these which give many benefits over and above that of a standard card. This may include cash back deals at all significant supermarkets and shopping malls offer on movie tickets, airline tickets, jewelry etc.. Another example is that the reward point of them where the customers can accumulate reward points since they use the credit card. These reward points can later be redeemed by getting cash discounts, offers or gifts. A few of them even give customers free airline miles.

Prepaid And Bonded Credit Cards

These are usually safer from a company’s perspective than other cards. This is one reason why those cards are available to people who do not have a credit history or have a tarnished credit history and consequently cannot acquire a standard one. From the prepaid, customer heaps cash on this in advance and any purchases are done by deducting the price from the available balance on the prepaid card. It will not have some of those overall problems of a standard card such as credit limit concerns, late fee etc. as it’s constantly dependent on what the customer heaps on these.

The charge limitation of this is effectively equal to the worth of the initial security deposit. This also doesn’t have late fee etc. and most importantly you can never overspend with those cards.