Some credit cards earn rewards, some save you money on interest, and some help you build or rebuild credit
With thousands of credit cards available, deciding which one is best for you might be difficult. Fortunately, most credit cards fall into one of three groups based on their features: incentives credit cards, low interest and balance transfer cards, and credit-building cards. This classification can assist you in narrowing your options.
It’s worth noting, however, that these three groups aren’t mutually exclusive or rigid. A card that saves you money on interest, for example, can also earn you incentives and help you build credit. Also, the ideal credit card for you will be determined by your needs, spending habits, and, in some cases, your card-holding and credit histories.
Here are the 4 types of credit cards to help you better understand what to look for in a card and what various categories may provide you in general.
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#1 Credit-building cards and Secured Credit Cards
Consumers with bad credit or who are new to credit cards may benefit from a card that might help them establish or enhance their credit.
Secured credit cards are one of the most effective strategies to improve your credit score. They normally require a security deposit equal to your credit limit. Because the deposit lowers the credit card company’s risk, the card is easier to obtain. And, if you use it responsibly, you’ll be able to get your deposit back after your credit score has improved sufficiently. You may be able to upgrade to an unsecured card with extra bonuses or rewards in some instances. For individuals trying to develop credit, the Discover it® Secured Credit Card is a smart option. The card with no annual charge requires a minimum deposit of $200 and can be upgraded to a conventional credit card with responsible use. And, unlike many other credit cards, it provides recurring benefits: Cardholders can receive 2% cashback on up to $1,000 in combined purchases at gas stations and restaurants each quarter. All other purchases will earn you 1%. The cred.ai card and CapitalOne Platinum Mastercard are also great secured credit cards.
Student credit cards are designed for college students who are just beginning their credit careers. These cards function similarly to conventional credit cards, but without the advantages and rewards, and most of them require confirmation of college attendance to be eligible. The annual cost is zero dollars.
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#2 FOUNDATION CREDIT CARDS – START EARNING CASHBACK CREDIT CARD REWARDS AND CREDIT CARDS POINTS
With a rewards credit card, you get a little something back for every transaction you make. Cash-back cards, which return a percentage of your expenditure, and travel rewards credit cards, which commonly reward you with points or miles for purchases, are examples of such cards.
I love the Chase Freedom Unlimited Card for this level.
Flat-rate rewards tiered rewards, and rotating bonus rewards are all available with cashback cards.
Flat-rate cards offer a consistent reward rate regardless of what you buy with your card, making them simple to use. The industry standard is 1.5 percent back, while there are now a few cards with a 2 percent back.
#3 UPPER FOUNDATION & BETTER REWARDS CREDIT CARDS
For this level, I really like the Chase Sapphire Preferred and Amex Gold cards.
Tiered-rewards cards necessitate a little more work because different spending categories earn varying rates. This means that if you spend more in specific places, you’ll want to use a card that earns bonus benefits in those areas.
#4 PREMIUM TRAVEL REWARDS CREDIT CARDS
The Amex Platinum Card takes the top rank in this category. The opportunity to earn 10x at restaurants and small businesses in the first six months after opening an account is a huge value proposition.
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🔗 Amex Platinum Card ► https://cutt.ly/amex-platinum-card-youtube
🔗 Extra Debit Card (Builds credit + rewards just like a credit card)► https://cutt.ly/1O1LGcv
🔗 Tomo Card (Doesn’t pull your credit – no credit inquiries) ► https://cutt.ly/TO1XWgm
🔗 Petal Card (Applying will NOT impact your credit score) ► https://cutt.ly/UO1VSNz
🔗 Capital One QuicksilverOne Rewards Card (Applying will NOT impact your credit score) ► https://cutt.ly/oO1BO3M
🔗 Step Teen Credit Builder Card (Recommended by me and my son who loves it!) ► https://cutt.ly/GO1B1gN
🔗 Self Credit Builder ► https://cutt.ly/self-credit-builder
🔗 Destiny Mastercard (Apply with NO impact to your credit score) ► https://cutt.ly/mO1NhWU
🔗 Greenlight Banking and Investing for Kids & Teens ► https://cutt.ly/greenlight-investing-for-kids-and-teens-youtube
🔗 Credit Sesame Card ► https://bit.ly/3roHLXK
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