In this segment we shall see some specific uses, and also see some of the ultra special cards in the market. Starting with a brief introduction of student cards that have low rates and more for students to help them access small purchases that can only be done via credit cards. Some types of business credit cards are targeted to businesses only such as higher limits, additional cards for employees and so on.
How to wisely use your credit card?
The best way to use your credit card is to get a rewards or cash back card or as secured credit cards. They are best for any person who needs it for genuine purchases. For example, frequent flyers can redeem accumulated points at affiliated stores at the end of a limit. Similarly, the secured cards can be used to limit the amount of purchase with a security deposit.
The first case is applicable for most of us. Those who are working class and earn a monthly salary can get this card. If you are faithful to depositing the money you have spent each month, these cards can earn you significant money over a long period of time. This cash back can be earned, as mentioned above, only with select outlets and stores.
The second type is the rewards program. This helps you accumulate points on every purchase and also rebates on petrol and gas, entertainment and so on. They also require an annual fee as opposed to student cards, for example. You must also pay back the money monthly to continue using it.
The secured cards require some collateral against which you can spend an equal or little less amount. These collaterals can be anything such as a car, assets, jewellery as deposits. These are used to build a good credit score.