These days there are several different types of credit cards available. This is of course great news for you in that you can pick what you feel best fits your particular needs.
Standard Credit Cards, still a good place to start.
- The most common credit card type.
- Feature a revolving balance.
- Credit limit or maximum amount of credit allowed.
- You use credit to make a purchase.
- Once you pay for the purchase that amount of credit becomes available again.
- If you do not pay in full before each grace period, a finance charge is applied on top of the balance owed.
- You must make a minimum payment each month, or by the specified due date.
- Late fees are applied if you do not pay minimum payment before or on due date.
Premium Credit Cards are also one of the credit card types you can choose. Premium Credit Cards offer additional benefits or bonuses compared to a standard credit card. These benefits can include cash back, travel benefits, upgrades, reward points etc.
If you are thinking about getting a Premium Credit Card because of the benefits it offers make sure to take a look at the fees that are associated with the card. Frequently premium cards charge higher or additional fees e.g. an annual fee or other higher fees. Depending on your card use the fees may not be significant enough and a premium card may be a great option for you. Typically premium credit cards also have credit score limit and minimum income that you have to meet in order to get the card.