Different Types of Credit Cards and Their Benefits

When you said you needed a new credit card, you didn’t realize there were so many cards to choose from! Fortunately, you can quickly learn everything you need to know. Read below about the different types of credit cards and their benefits.

Travel Credit Cards

There are a couple of types of rewards credit cards to choose from. Travel credit cards are perfect for those who seek adventure. You receive compensation through travel benefits by simply buying everyday items.

Each travel credit card differs in how they disperse rewards. You might receive points for discounted airfare or a discounted cost at a hotel. No matter the method, it’s a wonderful resource for people who travel frequently or have a big trip planned for the year.

Cash-Back Credit Cards

One of the best options is to receive rewards in the form of cash back. Each company’s regulations differ, but most give a percentage of cash back for every dollar you spend.

Some companies offer rewards for a specific category each month. For example, you might get cash back for dining and travel one month and the next month receive it for groceries and gas. Credit card companies deliver these rewards in two ways: they either add the money directly to your credit card statement or send it to you to spend as you wish.

Cash-back credit cards are incredible for people who seek rewards just for buying their everyday necessities. There’s no need to go out of your way to buy items to earn cash back. The money comes to you with minimal effort!

Student Credit Cards

You can start applying for a credit card when you’re 18 years old, but it’s much easier to qualify for a student card than many other different types of credit cards. Some of the amazing benefits of student credit cards are they typically don’t charge annual fees and they offer cash back. They’re great for students trying to establish a credit history for the first time and become more responsible with their spending.

Low-Interest Credit Cards

Many credit cards require fees for the service and high interest rates, which makes buying what you need more challenging to pay back to the lender. A great advantage of low interest cards is the ability to make a large purchase, pay it off over time, and avoid those pesky high interest rates. The 0% annual percentage rate (ARP) lasts for one to two years, depending on the lender. In return, you won’t pay any interest on the balance during this period.

A low-interest credit card (DC, VA, MD) at Democracy FCU can help you achieve your financial goals. Visit our website, learn about our incredible offers, and apply for a low-interest credit card today!