With a national debt problem, many enter the world of credit cards hesitantly. It doesn't help that there are dozens of banks and dozens of different types of cards to choose from, all with different rates and rewards programs. Before you sign with any card, make sure you know the policies and payments expected of you. Here are some different kinds of cards that might best fit your unique lifestyle.
A normal credit card.
Creditcard.com ranks the Citi Platinum Select Visa as the best low interest card, with 18 months of no initial APR.
This type of card gives back a percentage of your purchases to things like utilities and other housing costs.
An example is the Citi Home Rebate Mastercard.
It is a practical rewards incentive for families.
These rewards cards offer a percentage return in cash for purchases made with the card.
With any reward card, however, there may be a yearly fee, so bear that in mind before you sign up.
Lowcards.com says the Chase Freedom–$200 Bonus Cash Back card is one of the best cash reward cards.
You get a $200 bonus if you spend $500 in the first three months.
Some credit cards give you about 1% back on regular purchases, and then 5% on gasoline or vehicle maintenance purchases.
Other cards give back a percentage of your purchases to go toward the purchase of a car, like the GM Flexible Earnings MasterCard.
Depending on your line of work, this might be the right kind of card for you.
Earn points instead of cash. Points can be used to exchange for products or services that the bank has arranged for.
An example is the Citi Thank You Preferred Rewards Card, which gives you $250 dollars in gift cards once you get 25,000 points in a certain number of months.
A percentage of what you spends goes toward hotels and travel.
Some credit cards are co-branded with a large retailer such as Amazon, so your daily purchases can go toward future purchases from a retailer.
This can be a good choice for online shoppers.
Rewards with these cards can either be airline specific or just general. An obvious choice for travelers.
Forbes calls the Continental Airlines OnePass Card an excellent rewards card because it gives you $50 for your first purchase, along with 25,000 bonus points, which is enough for a round-trip domestic flight.
Secured cards are great because they do not allow you to spend beyond your means.
These cards must be backed up with collateral or a type of deposit.
Forbes names the Orchard Bank Secured MasterCard as a great card for college students.
This is actually not really a credit card, but it is great for those trying to gain control of their spending. You simply put money on the card and you can't spend more.
An example is the Account Now Gold Visa® Prepaid Card.
This card is meant to let you move your balance from a high interest credit card onto a card with a lower interest rate.
An example is the Discover® More® Card - No Balance Transfer Fee.
Those getting credit cards for business purposes can take advantage of some unique rewards not offered to regular customers.
For example, the Capital One Spark Classic for Business gives business rewards, year-end summaries, and 25 employee cards free of charge.