Secured credit cards are best for people who have trouble repaying their financial obligations in the past or those that have low credit scores. The great thing about this card is that it gives people with bad credit the chance to start rebuilding their credit score. Since secured cards have higher interest rate and certain charges that do not come with traditional cards, this card may not be the best option for people who have relatively excellent credit.
Note than a “secured” card means cardholders has to put down a cash deposit before they are able to get the card. Additionally, certain charges may apply such as annual fees and higher interest rates.
Rewards credit cards are made especially for people who do most of their spending and purchasing using a card. People who are able to pay off their balance in full each month are the best use this type of card. Other benefits of rewards credit cards are cash backs, where the cardholders earn cash backs each time they use it to make a purchase, travel discounts or free travel to certain destinations and earning points for certain goods or services.
That said, rewards cards do have several drawbacks, one of which is the high annual fee. Some annual fees are so high, it actually costs much more than what cardholders earn in rewards. Another disadvantage of rewards cards is that redeeming the points earned is not as easy as one might think. Before you think of getting this type of card, be sure to read the policies of the program first.
No Interest Credit Cards
No interest card is the best option for people who wants to keep their card purchases at affordable interest rates. One advantage of this card is that more of the cardholders’ payments go towards paying off their balances rather than paying for the interest. Cardholders can literally save hundreds of dollars in interest.
However, no interest credit card offers temporary rates only. As soon as the introductory period is over, the interest rate goes back to the normal APR, which is roughly between 10% to 18%, depending on the card. Additionally, once a cardholder makes a late payment during the introductory period, he will immediately be charged with increased interest rate and lose all the interest-free days he has left.