When picking the right credit card, it’s important to know your options. Of course, financial institutions (i.e. banks, credit unions) and stores have different credit cards with various perks and incentives, but it’s always good to be aware of the types of credit cards that you can sign up for.
Credit cards are issued as either:
- Standard unsecured cards — which is having a line of credit that has a credit limit a user can spend up to. These are the credit cards you’re probably the most familiar with and are great for building credit and having access to money in the case of emergencies!
- Secured cards — which require an initial cash deposit that is held by the issuer as collateral. These are great for anyone who is starting to build credit or looking to repair their credit.
- Rewards cards — which have loyalty programs that offer cash back, travel points or other benefits to customers with the more they spend. If you spend a lot of money at one particular store or on a particular type of commodity, these cards are great to get rewarded for shopping!
- Charge cards — which have no preset spending limit but often do not allow unpaid balances to carry over from month to month. Generally, you’ll need more established credit and a higher credit score to get accepted for a charge card. If you anticipate having large expenses that you’re able to pay off immediately, these cards are perfect for you.
- Balance transfer cards — which are used to transfer an amount owed on one credit account with a lower interest rate, fewer penalties or benefits, such as no transfer fee, rewards points or travel miles. These are cards that are good to keep your individual credit utilization low.
Along with credit cards, there are other lines of credit such as auto loans, mortgages and personal loans that are money you borrow for larger purchases that you pay back in monthly installments with interest (the percentage of a loan amount that it costs to borrow money).
If you’re ready to start building credit, Curu is here to help!
Sign up for Curu at curu.app or download on iPhone.
Once you sign up, Curu will automatically find the best credit card(s) for you using CardMatch™. From there, Curu will make sure you’re on the best path to credit score success by notifying you of any opportunities to properly build and improve your credit score.
If you have any credit related questions or want help with signing up for your first credit card, reach out to our customer success team at support@curucredit.com!
