A Crash Course To Credit Cards



Credit cards are one of the best tools you could have yourself equipped with within the 21st century. Our banking and financial system has long improved since the early days of trading your silk for a pot of vase. Things have changed vastly, and the world runs on credit and data. If you have noticed, recent times have reflected how there are very few times when cold, hard cash is actually being used. Even small purchases on the grocery are made by tapping your phone into a machine or using your credit card to pay. It is quite undeniable that the influence of credit cards is everywhere, and it’s not necessarily a bad thing to use one. Although it might sound bad: borrowing money to purchase things, there is so much more that goes into owning and using a credit card.

There are a lot of concepts that revolve around a credit card. Different types, such as personal, travel, and business credit cards, credit card bonuses such as a Chase sign-up bonus, and the promos and features that come with opening a bank account that has a credit card. Let’s try to explore some of the basic concepts, and hopefully, you’ll get something you could use to your advantage.

What are the types of credit cards that are out there?

Basic credit card. The basic credit card or traditional credit card is one of the most common types of credit cards that are available for you. They are the epitome of what a credit card is, and they contain the most core features of a financial account. You’d have a credit card that has funds in it that you can use. You have a credit limit, which means that it is only up to the number of amounts that you can spend in a period of time. Other things to consider are that their interest rates usually change depending on the demand, supply, and other economic factors that are found within the locale of the credit card and that they have annual fees. If you want a credit card that has the utmost basic functionality and you don’t want to get lost in the complications, then a basic credit card would be for you.


Secured credit cards. There exists the concept of a credit score in the credit card world. A credit score is essentially your personal standing or ‘reputation’ when it comes to paying back the debt and bills from different things, including your credit card. If you have a low credit score, you might not even get a chance to get a credit card. This is where secured credit cards come into play. The way that secured credit cards work is that they ask for a deposit, usually collateral, and you’d get a credit limit to spend equal to the value of what you deposited. This way, you’d be compelled to pay back the credit.

Secured credit cards are for people who have low credit scores, looking to bring their credit scores back up and for those who have a hard time securing a traditional credit card. One downside of secured credit cards is that they have a much higher interest rate and annual fee as compared to other types of credit cards.


Student credit cards. If you’re a student and are looking to get into the world of credit cards, then a student credit card would be the best fit for you. Just like secured credit cards, student credit cards also have low credit limits. They differ in such a way that student credit cards usually don’t have annual fees and have low-interest rates. They also have different features, such as cashback, discounts in specific areas, and even discounts on books and other school supplies when you buy them using a student credit card. 

A student credit card would be the perfect starting ground for students when it comes to building their credit history and establishing a credit score in times when they can’t yet apply for a traditional credit card. This would also give them the experience of handling a credit card and getting a bit more financially savvy before entering the working world.