There are many types of credit cards available that can be used depending on your circumstance. These include pre-paid, gas, small business, travel rewards, air miles, hotel points, student, unsecured or secured credit cards.
Pre-paid credit cards are more less like debit cards except that they do not come with a bank account, gas cards are usually used most times for the purchase of gas. Discover provides very competitive gas card rates. Secured credit cards are usually provided for people who want credit cards but have bad credit or no credit history. A deposit is usually required up front as a guarantee in the event of non-payment. Usually background checks are made, but due to the competitive nature of the credit industry, most providers offer guaranteed approval without credit checks. Student credit cards are designed specially for college students. With very competitive rates by different providers, there are many to choose from. It is a great way to build credit history if used appropriately.
Some of the major credit card providers are American Express, Mastercard, Visa, Discover, Chase, Advanta and many others. Such is the competition amongst providers that, credit can be obtained at unprecedented low rates these days
Credit cards are here to stay and it is hard to imagine them not being part of our normal lives. There may be negatives but credit cards are useful in many different ways. For instance, using money form your bank account to pay for your holidays can cost you a lot of money should things go wrong and your holidays not materialize. Using a credit card for the purchase however means you can have your money back due to the general Terms and Conditions written into most credit card contracts. There are many instances where people have benefited from using their credit cards for purchases instead of using money directly from their bank accounts.
Take for example the Mrs Bretton, who booked a party venue for her toddler’s party three months in advance only to be told six weeks before the date that the company had gone bankrupt! She however, received her money back after making this known to her credit card company. For others in her shoes who avoided using a credit card, they would have to wait for the administration accounts to determine whether the are likely to get their money back.
Credit cards are also a great way to start a business. Banks can be intransigent these days and lend nothing or very little to people looking to start businesses. This is where a credit card can help. Unlike a loan, payments are not fixed and depending on how much you borrow you and so long as you make at least the minimum payment, a credit card can be used to make small purchases for your business. It is important to pay attention to detail if you do so and pay your balances or payment due on time.
Even for people who have no debt, using a credit card for certain purchases is much wiser especially if buying on the internet. Goods and services such as holidays are better acquired using a credit card for reasons already mentioned above. In addition, it is better to have a credit card and pay of the balance every month so as to have some form of credit history than to have no credit history. This can hamper any future need to borrow a big loan whether for business or for a home.
Ideally we would all like to live debt-free, but such is the invasiveness of credit cards that it is nearly impossible to avoid them. It is also a way of measuring the credit worthiness of people. All in all, if used properly, using a credit card can be a positive rather than a negative experience.