What Are The Different Types Of Credit Cards?

Credit cards are very useful when considering their various types and facilities that they offer. The premium members and frequent users stand to earn more than others.

What is the usual nature of credit cards?

The usual nature being spending it just like a debit card. You can swipe it or make a purchase and the entire money gets deducted from your account right away. And, secondly, use it for EMI and overdraft purchases. Finally, there are a host of specialized cards.

What is a grace period?

This is a period of time, as mentioned above a month within which you must deposit back the money into your account to have some minimum balance so that you can continue to use it. If your account is not getting credited, after the maximum credit limit is reached you shall be liable to some action from the bank

What are some of these specialized cards?

There are cards that come with special reward programmers. That is, upon making a purchase you get some points or cash back based on the rules. You could use these points for making purchases at many affiliated stores at off. There are rules to obtain these special cards too, such as better than average credit rating of the customer.

Then there are cards for travel related to railway and airlines. They offer you a saving in terms of airline miles or railway distances. In both the case, if you are a frequent user, and you pay using this card, you get some points. And, upon accumulation, you can use these points for buying tickets to someplace free of cost. That is, the price is paid using these points. An important factor is the conversion of these points to tickets. For example, 1000 points could convert to $50 and so on.

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