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Types of Kreditkort (Credit Cards)

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In today’s world where several types of credit cards are advertised, it is quite easy to get confused and overwhelmed with the choices available to you. The good thing is, you do not necessarily have to know all there is to know about every type of credit card available in the market. 

You simply have to learn the basics of the most common ones and figure out which would best suit your spending needs and habits. To help you with this, we will discuss some types of credit cards and their peculiarity. 

When you decide on one, you can click here to go to kredittkortinfo.no for more on how to get the credit card of your choice. Now, let us get right into it!

1. Co-Branded 

These types of credit cards are cards for a particular brand or store. However, they are often issued by the regular card issuers that you know like Citi, American Express, Chase, and so on. 

Brands that often use these are airlines and hotel chains. Oftentimes, you can earn frequent-flyer miles that you can redeem when buying flight tickets or points that you can redeem when you book a hotel room. 

However, these rewards are normally limited to a brand. Despite this, these rewards are often solid and their values (like a free night stay in a hotel room) may ultimately be more than what you would have gotten for cashback. 

2. Secured 

A lot of credit cards in the market are unsecured. What this means is that you do not need collateral to acquire them. However, some cards may be secured. In which case, the cardholder will have to deposit an initial amount of cash before they are granted the credit line. 

Usually, the initial cash deposit is the same amount given. For instance, if the cardholder applies and makes a deposit of 500 dollars, the line of credit that will be given to them will also be 500 dollars. This initial deposit (and hence the credit limit) could even be as low as 49 dollars. 

This card type doesn’t seem ideal as it negates the whole idea of a loan, yet, they are usually easiest to get approved. So, if you wish to build your credit score or repair it, they can be a perfect idea. 

3. Store 

These are offered by retail stores. The consumers of the store can use them to shop and then pay off the purchase bill over time. Some of these can only be used for the stores that issued them, while others can be used for a particular line of stores. 

When placed in comparison with cards used for general-purpose, the interest of these may be higher. Oftentimes, these are used for deferred interest. What this means is that you will at first get a low rate or even 0% for a given time. If you are unable to pay off the entire bill within that given time, you will have to pay retroactive interest. 

Therefore, if you feel capable of paying off the bills early, you can leverage this and get some amazing rewards and perks. 

4. Cash Back 

With one of these, you can get statement credits or cashback on your purchases, although the rewards vary based on the card. Some may offer rewards on flat rates while others may offer points in some categories like travel or dining. 

Many of these do not have annual fees attached to them. Others may offer more generous rewards schemes and bonuses and charge a fair annual fee by the side (often under 100 dollars). 

If your spending habits revolve more in categories like dining, and groceries, a card that offers bonuses in categories instead of one that offers flat rates may be the ideal choice for you. 

5. Rewards 

These come in several flavours so much so that they include cash backs. With this type of card, you get points when you pay for items with it. Some even give bonus points for popular categories such as gas, dining out, and groceries. 

They also offer several ways for you to redeem the points, these typically include gift cards, statement credits, and merchandise. They are therefore perfect for daily expenses. If you use them to pay for your basic expenses like household supplies and groceries, you get travel rewards and cashback for items you had to buy anyway. 

6. Balance Transfer 

These are used to pay off debts on high-interest cards. The best types offer you an initial 0% APR for a given period, usually fifty to twenty-one months. With this, you get to rest from paying those interest charges. This way, you can use the extra cash to add up and clear off your debt. 

However, some of these ask for an initial (balance transfer) fee of about 3 or 5 percent, although, you may be lucky to get one that doesn’t require this fee. Even if you have to pay this fee, you will still gather up a substantial amount during the period where you have 0 percent APR. 

7. Travel 

These help you earn rewards or points that are aimed specifically for travelling. The travel credits can be flexible such that they can be used for travel tickets as well as other travel purchases. 

Some allow you to get points in specific programs like hotel loyalty and frequent-flyer. You can click here to learn more about frequent-flyer programs. If you travel often, whether, for your business or fun, you can get a luxury car that will offer you certain perks like yearly travel credits, access to an airport lounge, and so on. 

The wonderful thing about this is you do not need to travel before you can start earning these miles and points. Most of these cards allow their holders to earn the miles and points when they make purchases that aren’t even travel-related. You can start earning and gather them up to make the next trip you take more affordable.

8. Low Interest and 0% APR 

These types offer their users 0% APR for a given period, some last as much as 18 months. If you need to buy a very expensive item that you wish to pay for with time and without interest, then this is the ideal card for you. 

Some cards also offer below than average interest rates. These rates often go beyond the introductory phase. 

9. Business 

With a business credit card, you can keep your business and personal expenses different while earning rewards for your business-related purchases. 

Interestingly, this type of card can double as a cashback, travel, rewards, or secured card. Also, you don’t have to own a business before you can qualify for one of these. 

A first-rate business card will help you run your business easily while also ensuring you gain from your daily spending. Ideally, we suggest you go for one with great reward programs and features with which you can track your expenses. 

Some of these may offer flat rates for their rewards, while others may offer higher rates for business expenses such as internet service and travel. Finally, you can redeem your rewards one of two ways; either airline miles or cashback. 

10. Student 

These can be seen as a sort of starters pack. They are geared specifically towards young people who have an inadequate credit history. Due to this, the application requirements are not so stringent, so getting approved for one is not so difficult. 

Most of these do not have a yearly fee requirement and may offer rewards for money spent and perks if your grades are good. This way, young people can grow their credit score and also develop good spending habits. 

Conclusion

There are so many types of credit cards to pick from. After discussing some of them, we are certain you must have found one that best suits your spending habits and needs. 

 

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