LOWE'S FINANCIAL

How much do you really know about the kinds of credit cards out there? If you keep just a few days of todays mail that comes in advertising credit cards, you now there are many types and styles of credit cards offering a number of different services and perks to those who use them.

Deciding which credit card is best for you is easier once you know the types out there and what they have to offer. This information can be used to decide which one will best suit your needs.

Standard Credit Cards - The type of cards that are the most common are standard credit cards. These cards allow you to make a purchase, on credit, and pay it back over time with interest tacked on at monthly intervals. You will see many of the offers you receive are 0% APR or low fixed interest cards with balance transfer options. These offers are normally sent to you based on your credit score.

Premium / Reward / Cash Back Cards - Credit Cards that offer something in return for your usage fit into this category. These cards offer special incentives where in which the more you charge, the more you get back in regard to reward points or cash back. These returns on your money could be in the form of points you collect to get gift cards, cash back, airline miles, or a number of other perks. Generally most people that use rewards credit cards will pay off their balances each month but use the reward credit cards to pay for almost all of their monthly expenses thereby building up enough points to use to pay for complete vacation packages by the end of the year. This is a very smart technique if done properly.

Secured Cards - For those with bad credit, or parents who don't trust their children with uncontrolled credit cards, secured credit cards are the way to go. These cards have to be 'charged' with money before they can be used, and are much like using credit cards. Many student and bad credit cards fit in this category. This can be important for students when they get out of school to have a credit history built up using a regular student credit card verse a prepaid card. It really depends on how responsible that student is in managing their money on which type of credit card they should carry. It also helps the consumer who master the use of a Secured Credit Card with their life needs. For the best secured credit cards available to build your credit score visit: coveringyouwithwealth

Pre-Paid Credit Card- This card is secured with a fee to load the card. It acts just like your bank debit card but the money has to be pre loaded on the card. This card comes with lots of extra fees you have to read in the privacy statement. Also, when using the card some cards freeze your funds on certain purchases. The card can be used where a visa and master card logo is used. You cannot build your credit score numbers with a prepaid credit card. 

Business Cards - Businesses get extra perks when it comes to credit cards. Often lower interest rates are attached to business credit cards, as businesses are not seen as a high risk, and individuals are. Additionally, business credit cards often have larger spending limits to allow businesses the money they need for capital improvements. A good business credit card can also build points over time that can offset expenses in regard to office supplies and travel by building up airline miles.

Charge Cards - For people that spend a lot of money each month, but pay it all off at the end of the month, charge cards could be the best bet. These cards have no credit limits, but must be paid, in full, each month. American Express is one of these companies that has cards with unlimited spending limits but that must by paid off each month. This allows a credit card user the availability of a large amount of credit on the spot when making large purchases without have to write a check or carry large amounts of cash. You also do not pay interest on these credit cards since the balances are paid each month.

Once you know the general type of credit card that is best for your financial situation, you can start to narrow down the perfect card by comparing the different types of options for you.

Before ever entering into credit card agreement, make sure to look at more than just the type of credit card. Scrutinize annual fees, interest rates and other terms attached to a credit card to make sure it is the best choice for your spending future.