Credit cards have become a staple of modern life – it is difficult to get through the day without using one. They are fairly easy to get for most people – they even have them for people with bad credit. There are even a variety of cards that you can choose from.
They can be used for just about anything these days and most stores and restaurants will accept most of them. If you want to use one for daily use, or på dagen kort, there are many to choose from. There are also other ones that can be used for larger purchases such as furniture or large appliances. You can also get prepaid ones that have no interest rates at all. You can also get secured ones that will help you to build up your credit.
This article will tell you about some of the different types that you can use. There are several different ones that might be new to you. There are some with interesting characteristics that you might not have known about such as student ones that allow you to begin your history. 
All the Different Cards
- Standard – These are ones that have been around forever and that are still very common. These give you a set credit limit that you can’t go above. Once you hit your limit, you must pay off some of your card before you can buy anything else. Your purchases are all put in together as one balance that needs to be paid on each month. If you pay off your entire balance each month, you can avoid the interest. You must pay at least 1% to 3% on your balance each month. If you don’t pay on your balance, you could face some penalties such as late fees or over balance fees if you are not careful. You could be charged an annual fee, or even a monthly fee for some cards. Some cards offer no fees if you have a high enough credit score. They can help with your credit score if you pay them off on time.
- Rewards – With this type of card, you earn rewards when you use it. There are at least three different types of reward cards. There is one for general rewards points that you get for just using the card. You can use these points to buy things that are usually from a partner company of the credit card company. You can also get a travel rewards card that gives you points towards hotel rooms, airplane flights, and other travel related rewards. You can also have a cash back card that will give you cash back for a certain amount that you used. Most of these give you about 2% back on your purchases. Some of them offer more than one reward. These work in the same way as a standard card, you just get rewards back from them.
- Balance Transfer – You can transfer balances from one higher interest one to any other one, but balance transfer cards usually have lower interest rates for a limited time. This introductory rate can be as low as 0%, but usually goes away within about six months. These cards are really good for you if you are paying an outrageous amount of money for interest and the new card has lower interest rates after the introductory period. These balance transfer ones can help you to lower your monthly payments and get rid of those high interest rates.
- Charge Cards – These work differently than the other ones listed because they usually have no limit. You usually must pay these off in full each month, but you then have no interest rate if you do pay them off. There are extremely high late fees if you are late making your monthly payments. If you want one of these cards, you usually must have excellent credit, or you will be denied. For excellent credit, you must have a score of at least 780 or higher. Lenders prefer that you have a score of 800 or higher.
- Student – These cards are meant to be for younger adults who are looking for their first one. It is hard to qualify for that first one, but if you are a student at an accredited college, it might be easier. The interest rates might be a little higher than those who have established credit, but there are different levels of interest rates so that you can afford it. There are usually introductory periods where the interest rate is very low. These are a good way to get your credit history started and allow you to have a credit card when most people your age won’t have one.
- Business – These are good if you have a small business and need to use credit, as most do. There are usually lower interest rates for you and usually require you to pay them off in full each month. Some of these have no credit limit, and some have a very high limit to allow you to purchase what you need for your business. Some of them allow the balances to revolve, but then you must pay an interest on it. A lot of these have perks and rewards just like other ones, but they are more geared towards your business. These can only be used for your business; you can’t use them for personal purchases. You want to make sure to keep all your business receipts for tax purposes, as well.
- Secured – These are for people who have difficulty getting one because of a low credit score or because of little credit history. You usually must make a big security deposit, and that is usually what your limit will be. You are then able to use the card the same as any other and purchase what you need to purchase. These have higher interest rates than normal cards, but if you are having trouble getting others, this should not be a problem. You usually don’t get any rewards with these. They will help you to improve your credit score if you pay them off every month like you should. This will also help you with your interest rates on future cards.
- Limited Purpose or Store – These are cards that can only be used at a specific store or gas station. They are used for purchases in those places and cannot be used anywhere else. If you are loyal to one particular store or gas station, this may be the card for you. Some of these also offer rewards that you can use at their place. These are good for anyone that goes to one store more than any other store. These cards are usually easier to acquire than other ones because the store wants your business.
- Prepaid – These are ones that you need to load with money before you can use it. Once it is loaded with money, you can use it just like any other card until the balance is zero. Then you can reload it and use it again. There are also gift cards that can’t be reloaded, some that can only be used at certain stores. These aren’t cards that can help your credit score because they aren’t true credit cards. They are good for ‘tweens and teens to use because there is a limited amount of money applied to them.
Conclusion
There are several different types of credit cards that can be used in a variety of ways. There are cards that have rewards attached to them and those that have lower or zero interest rates, and those that have higher interest rates. You can use them at specific stores, or you can use them for your business. You can even get ones that are prepaid so that you don’t have to worry about interest rates at all.