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Types of Credit Cards – Forbes Advisor – Forbes

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Different types of credit cards fit different ca…….

Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors’ opinions or evaluations.

Different types of credit cards fit different cardholder needs. The right card will help you responsibly achieve your financial goals while providing the best possible value.

Many credit cards are best suited for a specific purpose such as earning rewards, building credit, financing large purchases, helping businesses finance expenses while earning rewards or financing previous credit card debt via incentivized balance transfer offers. Check out our guide below to the many types of credit cards to learn more about which might be right for you.

What Are the Different Types of Credit Cards?

Rewards Credit Cards

When cardholders use a rewards credit card to make purchases, they can earn rewards including cash back, points or miles. Welcome bonuses offer new cardholders the ability to earn a reward for spending a specified amount on a card within a certain period of time.

For people who utilize credit cards frequently or for large purchases, rewards cards can be especially profitable. Travel cards offer those that travel often (or use specific airlines or hotels frequently) additional miles and points that can be applied towards free tickets or rooms, upgrades and status changes, and lounge access and certain travel protections.

For retail-branded rewards cards, the same concept applies: Frequent shoppers at certain retailers will often see the greatest benefit by earning high reward rates or deep discounts when they use the card online with a co-branded retailer or to finance purchases in-store.

Rewards cards also do a good job of incentivizing cardholders. But if you’re trying to limit your credit card usage—either because you’re at risk of carrying a large balance or because you want to limit your spending—a rewards card may not be right for you.

Premium Rewards Cards

Premium rewards cards typically charge high annual fees in exchange for elevated reward earning potential and even more benefits. These cards are best for those who know how to manage credit cards well. Typically, premium rewards cards require excellent credit for successful application approval.

Since interest rates on premium rewards cards are often high, they are best for cardholders who pay balances in full each month. If you often maintain a card balance, the fees and interest you will pay may cost more than the value of any rewards you might earn.

Balance Transfer Cards

Balance transfers offers allow cardholders to finance existing credit card debt, often for little to no interest during an introductory period. After the introductory period, a …….

Source: https://www.forbes.com/advisor/credit-cards/types-of-credit-cards/

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