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Having a credit card is a trend setter these days, but before applying it, it is vital to know what precisely a credit card for, and also its advantages and disadvantages. Always compare the credit cards before finally knowing which company is providing you the best knowledge. What is a credit card? Credit cards are usually a mode to procure things on a credit basis. It is more likely to buy things now and pay for them later. Using a credit card is just like you are borrowing money from lenders. You will receive a monthly statement and you have to pay a minimum amount off the total sum yet to be paid. In case if you don’t pay the amount monthly, the credit card companies will add the interest to the exceptional balance and it adversely affect your credit card rating, except you are on a interlude of 0% rate of interest. Generally there are following types of credit cards available: Standard credit cards These types of credit cards are commonly available mostly in every financial group. These credit cards are unsecured in which you do not have to give a security deposit to guarantee that the money can be repaid. The annual percentage rate on these cards may vary. The two types of credit cards in this group are Balance transfer credit cards and low interest credit cards. Credit cards with rewards agenda Such type of cards allows users to earn inducements when they make purchase with the credit cards. These types of cards usually need better than standard credit for consent. Cash back credit cards, General reward points credit cards, Hotel or travel points credit cards, Retail rewards credit cards, Gas cards with points or rebates; Auto mobile manufacturer rewards cards, and Home improvement rewards credit cards come under the credit cards with reward agenda. Bad credit and/or credit repair cards Due to poor budgeting credit can go from good rating to bad, but this does not mean that you cannot apply for credit cards. There are different credit cards offered by the finance institutions for bad credit card. You can apply for them as per your precise situation. It is of two types- secured credit cards and prepaid credit cards. Speciality credit cards These credit cards are designed to meet the needs of students and business professionals. They are of two types: Business credit cards and student credit cards. There are many credit cars available from different companies that offer different rates and fees. But it is important to finalize after compare the credit cards comprehensively.
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