The Cashless Future: 11 Types of Credit Card You Should Know

In today's advent of technology and digitalized economy, handling your finances now comes in a lot of ways. Just like an array of credit cards in the market and how bad credit history can affect your applications and credit scores. Credit card companies would check your bank account, credit line, and sometimes, your bank activities like balance transfers.

With so many types of credit cards offered to consumers, it is easy to become overwhelmed with the options you have. But don't worry, in this article, we'll help you find the best credit card type to fit your lifestyle and cover your needs.

11 Different Types of Credit Card You Must Know Before You Get One

1. Rewards Credit Cards

With a rewards credit card, you get to earn points, cash back, and other bonuses when you use it to buy your groceries, fill up your gas tank, and even when you use it take your partner out on a lunch date in a nice restaurant. Also, this type of credit card offers various ways to redeem or use your points. You can either use it to save up, buy more products or sometimes get bonus deals for using your rewards credit card.

So, if you're planning to use it every day and can pay off your card diligently, this type of credit card is the best option for you!

2. Cashback Credit Cards

Next on our list is a cashback credit card. Chances are you've heard about cashback and how it works but if you aren't sure, cashback is the money you receive after meeting the spending limits when you purchase. Sounds fantastic, right? Though the cashback system is rolled out differently depending on the card issuer, rest assured that there's a flat rate of rewards depending on how you will use of cashback credit card. So, if you're one of the money-savvy shoppers today, this card may be for you.

3. Travel Credit Cards

If you love to go to different destinations, a travel credit card might be the perfect swiping card for you. This type of credit card provides you the opportunity to earn rewards when you purchase or avail services related to traveling. Earned points can be used to avail of airline or hotel programs and some travel credit cards will give you points for joining hotel customized programs.

4. Air Mile Credit Cards

Do you want to score free domestic and international flights? An air miles credit card earns you air miles every time you use it and works the same way a rewards credit card works. However, instead of getting rewards points, you earn in the form of air miles every time you use your card to complete purchases. Lots of credit card companies have partnered with top airlines in the Philippines to offer rewarding air miles programs for their loyal customers who love to travel.

So, are you excited to earn air miles for every purchase made with your credit card? Find the best air miles credit card providers and book your flights domestically and abroad.

5. Balance Transfer Credit Cards

Need help in managing your high-interest rate credit card debts? Then a balance transfer credit card could be the answer you're looking for to get a break from paying interest charges and settling down the debts on your hands. Most balance transfer cards offer 0% APR for an introductory period between 15 and 21 months, giving you some time to pay off your debt while avoiding interest charges. Some credit cards offer no balance transfer fee, while others charge a 3 percent or 5 percent upfront fee. So, if you think a nice break from the high-interest rates will give a push to reprioritize your finance, inquire about a balance transfer credit card today.

6. Business Credit Cards

How does getting rewards for your every business spending sound? If you have an established business, you may qualify for a business credit card and earn rewards for all your business spending. Note that a business credit card, cash back credit card, travel credit card, rewards credit card, or a secured credit card. Hence, if your income-generating business runs smoothly in continuous spending, then a business credit card is your best bet in getting rewards.

7. Student Credit Cards

Yes, a student credit card actually exists. This type of credit card is perfect for young people with a limited credit history because the application is not as strict compared to other credit card types. Getting a student credit card can also help you start building your credit line and start to establish good financial behavior.

8. Secured Credit Cards

A credit card is usually unsecured, which means no collateral is required. But with secured cards, a small line of credit, usually for a similar amount, a cash deposit or security deposit is required. For example, you might sign up for a secured credit card and put down an initial deposit. Right then, you'll receive that same amount as your credit limit to start your credit line and that one-time deposit varies for different credit card providers.

9. Co-Branded Credit Cards

Are you a loyal customer of a particular brand? Then co-branded credit cards could be the best swiping partner for you. In fact, this can help you save money on your purchases and boost your rewards while you shop at your favorite brand. Though the rewards offered by a co-branded credit card are limited to one brand, rest assured that you'll be getting high-value rewards sometimes much more exciting than cashback.

10. Store Credit Cards

Through store credit cards, consumers can charge their purchases at retail stores and pay them off over time. Another beauty in availing of credit cards. Although some store credit cards can be used within a specific family of stores, they are generally only used within that specific store.

11. Shopping Credit Cards

Last on our list is a shopping credit card. It offers discounts and exclusive deals for shopping in-store or online using the card. Most of the time, store-branded credit cards have higher interest rates than general-purpose cards. Plus, it charges in deferred interest, which means, you’ll get a low or 0% introductory rate for a period of time. However, once you fail to pay the full amount off within a specific time, retroactive interest charging will take place. So, if you love to shop in a specific store or avail of exclusive services, a shopping credit card is perfect for you!

Regardless of what credit card you wish to get, it is crucial to establish good financial habits to protect your credit line. Make smart and bold financial decisions and choose the best credit card depending on your needs and lifestyle.

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