There are many things to shoot for when searching for the right credit card. Some borrowers want to find a low interest rate, while others are attracted to certain perks offered or the length of the grace period. Perhaps just as valuable as a low interest rate is reasonable penalty conditions. Being trapped with credit card that has a 29 percent APR and a large balance can be a nightmare. Finding the right provider with the right benefits means thinking about specialty credit cards.
It is true that the average credit card is a credit card regardless of its name. It is also true that lenders give their cards all sorts of names in order to attract borrowers who identify with particular needs or groups. It might also be that these specialty cards genuinely have features that benefit people in particular walks of life.
One example is the fine line between a conventional credit card and a student credit card. Students gain credit through various means. Government subsidized loan companies might issue cards as a way for students to borrow for their various campus needs. It is also true that student loans are long term loans and student credit card providers will limit the amount one can borrow, and usually offer higher interest rates. For reasons like this, student credit cards can be considered higher risk. While they can be used unwisely, they can also be a step for building good credit.
For the most part, student credit cards behave like conventional credit cards. However, the interest rate might be a little higher than some other cards, but this cost is balanced by more flexible spending options. For example, student credit cards might not ding the borrower for a first-time default. There may also be no penalty APR. Additionally, student cards might have rewards for good grades or offer cash back on basic expenses.
Business credit cards tend to focus on benefits such as mileage and business-related cashback. These incentives are geared towards business-individuals and have features that would appeal to a professional. One attractive incentive might be a great introductory APR offer. Since it takes time to start a business, being able to avoid payment or interest for a year can be appealing.
Some business credit cards have cashback incentives related to restaurants. They might have a welcome bonus. Most have a high credit limit. A low APR might be available for someone with available credit. Since the recipients of these cards tend to have good credit, there is bound to be a penalty for late payments.
Store credit cards might be specific to a particular store or might be geared towards the shopper in general. These types of cards sell to a lifestyle. Some people love living at the mall and shopping for apparel. Many of these cards offer small cashback for specific purchases and might have special arrangements with Amazon.com or some other large consumer goods store.
A gas credit card focuses on bonuses for buying gas. These tend to be popular whenever gas prices are high. They are definitely useful for someone who drives a great deal. Bonuses vary from cashback on gas to free travel miles to even free gas if certain conditions are met. These benefits can also be features of other cards.