There are many types of credit cards out on the market, and some people worry about selecting the wrong cards and falling into credit card debt. However, that shouldn’t stop you from opening accounts with reputable institutions. As long as you use your cards responsibly, you can boost your credit, and you may even reap rewards in the process. If you’re looking to open a new account, below are some of the most popular kinds of cards to consider. 

What Are Some Common Types of Credit Cards?

1. Secured Card

A secured card is backed by a cash deposit, which is equal to the account’s total line of credit. Because this arrangement poses virtually no risk for the lender, secured cards are usually available to those with poor credit. As you conduct credit repair and your score increases, it may be possible to convert the secured card to a traditional, unsecured account. 

2. Student Card

A student card is an unsecured account with fairly loose requirements so that students with little to no credit history can qualify. These cards generally have low annual fees with education-related rewards, like points that can go toward student loan payments. 

3. Business Card

As the name implies, business cards are for business expenditures. If you own a small business with little to no established credit, you may have to apply for the card using your personal information. However, larger corporations with decent credit ratings can qualify for millions in credit that multiple parties are authorized to use. 

4. Charge Card

For those who are wary of carrying credit card debt over from month to month, there are charge cards. These cards don’t have a spending limit, but they must be paid in full at the end of each billing cycle. Although these accounts tend to have high annual fees, they often offer appealing rewards, like redeemable points on every purchase. 

 

If you don’t qualify for the card you want because of credit card debt, turn to Buypower Eminence. Based in Lancaster, PA, this credit repair agency helps clients regain their financial footing so they can secure better cards and more loans with lower interest rates. Their knowledgeable team is well-versed in tax liens, repossessions, judgments, and hard inquiries. To discuss strategies for cleaning up your report despite credit card debt, reach out on their website or call (833) 428-9769.