What to know about types of credit cards

Find out what type of credit card offer is the right one for you.

09:39 25 September 2013

There are plenty of different credit card offers around and it is a challenge, at times, to choose a card that works for you. Everyone has different spending habits and financial needs, so a card that is perfect for one person, may be horrible for the next.

Here are a few of the different types of credit card offers you might receive. Keep these in mind to decide which offer is best for you.

• Introductory purchase interest rate—these offers are some of the most common. The credit card company offers a low interest rate for a certain period of time for any new purchases made with the credit card. Remember that there may be certain criteria you have to meet each month in order to retain the rate.

 

• Special balance transfer rates—if you already have loans that are at higher interest rates, these types of offers could be very helpful. Many times you might only need to pay a small fee for the transfer and then you could save a lot right through the course of the loan repayment if the interest rate is much lower.

 

• Cash back cards—some cards offer you cash back on your purchases. Be sure to examine the guidelines closely for this offer. Most likely unless you purchase everything on credit and then pay it off during the month, this may not add up to very much money.

 

• Rewards offers—certain types of cards allow you to collect points which you can then redeem towards merchandise, flight tickets, entertainment tickets, restaurants, and even use toward grocery purchases. If you already have an interest in those types of things, a rewards credit card may be just the ticket.

 

• No fee/ low fee cards—these offers may seem difficult to obtain, but there are still credit cards which do not require an annual fee. Keep an eye out for other fees though.