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The financial requirements of one person are different from those of the other. With this being the situation, it is not fair to have just one type of credit card for people from all walks of life. In order to ensure all customers are kept happy, banks and other financial institutions offer various types of credit cards. Though most of the people are aware of the fact that there are various types of cards, a vast majority are not aware of the types they can choose from. Let us take a quick look at the options banks generally offer customers.
The most common types of credit cards that people prefer are the standard credit cards. The working of these cards is very simple. Every person who holds this card is offered a revolving balance with a fixed credit limit. You can use these cards to make your purchases for online shopping and also in regular stores. At the end of each billing cycle, there is a finance charge that is applied to the balance. The billing statement mailed to you will contain the details of the transactions and the amount due to the bank. You will need to make the minimum payment before the due date if you do not want any late payment fees to be charged on your account.
The next most common set of cards are the premium credit cards. A large number of banks offer gold and platinum cards to select customers that come with various benefits that are better than those offered on the standard cards. Though these cards have higher fees associated to them, the rewards offered are excellent. Travel upgrades, air miles and cash back are some of the most common rewards that customers can opt for.
There are credit cards that can be used only in certain places. Such cards are called limited purpose cards and work just like the standard ones. These cards are not issued by banks, but by other financial institutions and stores.
If you want cards that don`t have any limits associated to them, then, opt for charge cards. The balance on these cards, unlike those on the standard ones, has to be repaid in full at the end of each billing cycle. Since the payments are repaid in full there are no financial charges applicable. However, depending on your usage, the lender might levy charge restrictions or even cancel the card.
It is imperative that you consider all these cards and match them against your expectations in order to find the right one for your financial needs.