find the better credit card for your lifestyle is not always easy. Luckily, these four are a great starting point.
Secure credit card
A secured credit card is a type of credit card backed by a cash deposit. The deposit serves as collateral to protect the lender in the event of default and non-reimbursement.
Secured credit card are simple: after depositing money, the lender issues a line of credit often equal to your security deposit. Then you use the card and redeem it like any other card. When you close the account or switch to an unsecured card, you receive your deposit back.
Secured credit card make great options for credit card beginners and anyone with a poor or no credit history. Since the issuer reports the card to the credit bureaus, secured cards can quickly boost your score. As you try to improve your credit, the Guaranteed Cash Credit Limit helps build responsible credit habits.
Cash back credit card offer cash rewards on everyday purchases. Most rewards come in the form of dollars or points and work on a percentage. (For example, earn 2% cash back or 2x the points on every dollar spent.) You can usually redeem your rewards for a check, wire transfer, or credit statement.
Cashback cards come in three main versions:
flat rate cards offer the same cash back on every purchase (usually 1-2%), making them ideal if you want cash back without complicated reward programs.
Bonus category or tiered cards offer “tiers” of rewards based on where or what you buy. (eg 2% on restaurants, 3% on groceries, etc.) You may prefer a tiered card if you tend to shop at specific retailers.
Rewards Card Rotation change their premium categories quarterly or annually. You might like the rewards card rotation if you’re very organized and want to earn more cashback on seasonal purchases.
Cashback cards allow you to easily earn back money you would spend anyway, helping you “save” on your purchases.
Service stations can dispense gas credit card that offer discounts, rewards and benefits for refueling. Many, like those offered by Shell or ExxonMobil, offer 5 to 10 cents off per gallon. Gas cards tend to work more like store cards in that you can only use them at particular stations or brands.
Gas station credit card can help you save money on gas while limiting the use of your credit. Due to their limited acceptance, you can also use them to establish or rebuild your credit without worrying about spending too much.
travel points card
Travel point cards are part of the best rewards cards for frequent travelers. As the name suggests, they help you earn travel-specific rewards and discounts.
Depending on the card, you can receive points or miles on every dollar spent which can help you score points for free or at a discount:
Airport lounge stays
For many people, travel rewards cards make it easy to save for a well-deserved vacation. Some travel points cards also offer redemption options for non-travel related expenses, although your points may not go that far.
How to do Credit card Help you achieve your Financial goals?
Your credit card can work for or against your financial goals. It all depends on how you manage your expenses.
Build your credit score
You can use credit card (especially secured cards) to build your credit score and responsible credit habits at the same time. Over time, you may qualify for better interest rates or larger loans, such as a car or home loan.
Increase your savings with daily expenses
Rewards cards make it easy to earn cash back and travel points on everyday purchases. The key is to find cards that match your spending habits and advance your financial goals.
You can use the money or points you save to cover your holiday shopping, save for your future, enjoy a free vacation, or lower your grocery bill. And if you pay your bill monthly, you’ll enjoy all these benefits without paying interest or fees.
More credit card now also offer built-in fraud protection. In addition to helping you out of fraudulent purchases, they can also provide protection against identity theft. Defending your financial situation against scammers helps you stay on track with your financial goals.
Track your expenses more easily
Credit cards also make it easier to settle your Monthly Budget.
When you pay for your purchases with cards, it is difficult to keep track of all your receipts. But with a credit card, you can use the online or mobile app to break down your expenses by category, simplifying the budgeting process.
Compare the best credit card for you
Finding the best credit card can be a hassle, but not with Benzinga. We make shopping easy and compare credit card that fit your lifestyle.
Frequently Asked Questions
What type of credit card is most widely accepted?
Visa and Mastercard tied for the most widely accepted credit card by global merchants at 52.9 million each. Discover comes second with 44 million merchants.
What is the best option for credit card?
The best credit card is the one that meets your needs. For example, while cashback cards can help you reach your savings goals, secured credit cards make it easier to control spending and build credit.
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