Monday, December 18

Type of Revolving Credit Lines – Credit Cards

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1. Standard credit cards: Standard credit cards are the most popular and commonly available credit cards.  These credit cards are unsecured and there is no need to give anything as security to avail these cards.  The interest rates on these cards vary from bank to bank.  Common examples of such credit cards are:

i. Balance transfer credit cards that permit a customer to transfer balance on high interest credit card to a low interest rate credit card. 

ii. Low interest credit cards that offer low annual percentage rate initially that increase after a certain period.  Low interest credit cards also offer a single low fixed-rate APR.

2. Credit cards having rewards programs: Through use of these credit cards, you can earn points or incentives.  These points can be redeemed for numerous rewards or reducing debt.  Various reward credit cards are:

a. Cash back credit cards that give cash rewards for using it for making purchases.  Higher cash rewards are given for higher purchases.

b. General reward points credit cards are reward credit cards that reward points on basis of usage of the card.  Points can be accumulated and numerous items or services can be availed with these points.

c. Hotel/travel points credit cards are credit cards that are to be specifically used for stay in a hotel or for travel. Some of these cards can be used in specific hotel.  They also allow user to earn points for purchases made along with bonus points that are earned for staying in a particular hotel and these points can be redeemed for travel expenses like tickets or car rental.

Other credit cards with rewards program are gasoline points rebates credit cards, automobile manufacturer reward credit cards, home improvement rewards credit cards and all these offer points that can be redeemed while purchasing a particular product or service.

All credit cards are charged an annual fee which varies from card to card and from bank to bank.


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