With the countless types of credit card companies out there, there seems to be thousands of different types of credit cards to choose from.  Instead of even attempting to address every card, I’ll focus on a few of the main types of credit cards and the pros and cons of each.   

Unsecured Credit Cards.  These are the most common types of credit cards..  “Unsecured” simply means that the financial institution does not require any collateral before providing you with a loan or credit.  Unsecured loans are usually given to people on the higher side of the credit spectrum, and depending on the lender the amount of credit issued and the interest rate will vary – sometimes significantly. More…

Rewards Program Credit Cards.  These types of credit cards differ slightly from unsecured cards in that on top of the credit line issued, the financial institution offers additional incentives to entice the consumer to use their card with greater frequency.  These incentives or rewards, come in the form of airline “miles”, cash-back on purchases, percentage discounts, no-hassle rewards and many more. If you tend to make a lot of purchases on your credit card, or travel often, you definitely want to take advantage of a rewards credit card and start ‘earning” some free stuff.  More…

Secured Credit Cards. These types of cards easy to get, and are usually the only options for people that have credit problems or low credit scores.  “Secured” means the financial institution will only grant you credit if you deposit money into a “holding” account in advance.  You can then use your credit card when needed (rentals, hotels, etc) up to a given % of the money you have deposited.  Making your payments on time will allow you to rebuild your credit history and eventually qualify for better credit options.  More...

Prepaid Debit Cards.  These aren’t really “credit” cards per se, but actually are more closely related to an ATM or bank card.  With prepaid debit cards you make a money deposit, like you would into checking account, then spend that money with the convenience of a debit/credit card.  Only with prepaid cards there is no checking account.  You simply “load” and “re-load” the card and can only spent up to the amount loaded.  If you tend to overspend or want more control over your (or you family’s) spending, a prepaid debit card may be a good option for you. More...