There is a variety of credit cards that you will encounter to cater to the different spending patterns and needs of customers. A lot also depends on the creditworthiness of the individuals and their credit scores. Credit cards can roughly be classified into high lifestyle credit cards and credit cards for building credit scores. Most of the credit cards that you come across will fall into one of those categories. However, when you want to take a look at the actual variety, this will give you a good idea.
Low APR credit cards
These are credit cards which come with a very low interest rate. These are ideal for those customers who have outstanding debts and therefore want to save as much as possible on the interest they would be paying on these cards. The interest rate on these cards could vary between 11 to 20% depending upon what the credit score of the individual is. High credit score individuals can get credit cards with a much lower interest rate
. However, it should be noted that these credit cards usually don’t have too many rewards or additional benefits.
Balance transfer credit cards
These are credit cards which are offered to customers who have credit cards of a different company. This is a strategy used by most of the credit card providers to lure customers of other card issuers. Some incentives are offered with these credit cards. The most popular offer is that of a low or even 0% introductory rate on the balance transfer amount for an introductory period. The duration of this period varies based on the credit score of the individual once again. There are cards offering 0% interest rate of the outstanding debt for as long as 18 months for customers with excellent credit scores. Usually these cards come with a balance transfer fee that has to be paid by the customer up front.
Frequent shopper credit cards
These are credit cards offered to those customers who tend to shop a lot with their credit cards. These cards are specifically tailored for the spending needs of those customers who tend to shop a lot and maintain a high lifestyle. These cards have brand tie ups as a result of which customers can get excellent milestone discounts on different brands, whether it is apparel, fashion accessories or electronic goods, to name a few.
Frequent flyer credit cards
These are credit cards which are offered to those customers who tend to travel very frequently. These cards reward the customer’s spending on the credit card through air miles which can be redeemed in the form of discounts on their air tickets. Besides, these cards also offer discounts on hotel stay as well as restaurants across the world.
Cash back credit cards
These are amongst the most sought after credit cards. These cards allow you to save on your cash by offering discount ranging between 1 – 5% on various categories. Some cash back cards
give you up to 5% discounts for purchases made at drug stores and gas stations.