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4 Common Types of Credit Cards (2023)



4 Common Types of Credit Cards (2023)

Credit Cards

Credit cards are a way to borrow money against your credit and pay off that money at a later date. It comes with perks, such as rewards and the revolving of credit, but it comes with risky opportunities.

Picture it – the year 2023. Paying for meals with the swipe of a thumbprint reader has become commonplace.

But there are still many different credit card types to choose from. From prepaid cards to cards with rewards and cash-back programs. Deciding which one to use can be overwhelming.

In this post, we’ll break down the different types of credit cards available, so you can be equipped with the knowledge needed to make the best financial decisions for you in the year 2023.

1. Business Credit Cards

These cards are geared toward business owners and allow them to manage their everyday expenses. It comes with a variety of features. It includes cashback rewards, extended warranty protection, travel perks, and exclusive discounts.

If you get a credit card, it will make it easier to keep business expenses separate from personal expenses. View here to see an example and to know how much easier it is to budget using this card. It tends to have higher credit limits than personal cards.

It has more flexible reward options, allowing business owners to use their points for a variety of things. It has fraud protection features, such as text alerts and card monitoring.

2. Rewards Cards

Rewards cards allow cardholders to earn points that can be redeemed for cash back, travel miles, discounts on retail purchases, and other perks. By spending a certain amount of money each month, users can add bonus points and cash-back rewards that they can redeem for a variety of services and products.

Many types are now tiered, allowing cardholders to pick which of rewards they would like to earn. There are statement credit rewards cards, travel-branded cards, and co-branded cards. Each offers cardholders a chance to earn the greatest rewards for their particular spending habits.

3. Balance Transfer Cards

This allows you to transfer existing credit card debt to a lower-interest-rate credit card. This will reduce how much you’re spending on interest fees and make it easier to keep up with payments. They are meant to help you close out a high-interest loan or debt.

They offer introductory rates, so users can cut their expenses and pay off their balance faster. These come with no annual fees but may come with a one-time fee for balance transfers.

4. Student Credit Cards

Student credit cards give low interest rates and no or low annual fees. It is easier for students to manage their money and build credit. Some student credit cards offer cashback and rewards for spending.

It can give students access to student-specific discounts and resources such as financial literacy and scholarship websites. Use of these cards can lead to added credit opportunities such as loan refinancing and credit limit increases. As students transition into adulthood, having one may help set the foundation for their journey to set up a successful future.

An Overview of Types of Credit Cards in 2023

By being informed and making educated decisions, you can choose the best types of credit cards for your needs and goals. Many cards offer reward points and cash-back features, so it’s worth searching and reading reviews before applying.

Find the best one for you to reap the rewards of responsible spending in the future. Take action now and start your credit journey today!

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