If you want to get a hotel room, take out a rental car, or just rent a RedBox movie, then you need a credit card. Even for food, clothing, and other necessities, having a credit card makes your life many times easier. Instead of carrying a huge wad of cash around that you had to go the bank to get, you can just carry around a thin strip of plastic. If it gets stolen, you can shut that card down and replace it with an exact replica. Credit cards help make your life safer and easier.
There are a lot of different types of credit cards out there. Wichita Banking Rates has created a list of persona types. Find which one fits you best to discover which credit card is right for you.
- The Traveler – Do you spend most days away from home, maybe even flying to work every day? For the man or woman who is frequently on the move, an airline or gas rewards credit card might be perfect for you. When you use your card to buy something, you are rewarded with points which can add up to a free flight or cash back for gas money. Earn frequent flyer miles on top of your rewards to make your traveling experience less expensive. Watch for high interest rates and hidden annual fees before you make a decision. If you plan on traveling out of the country, look for a card with no foreign transaction fee.
- The Financial Expert – For the person who has a really good credit score, an unsecured low interest credit card might be the best option for you. Only available for people with excellent credit scores, these cards offer APRs as low as 9.99%. They also offer the opportunity to transfer balances and require no annual fee. 0% introductory APRs can last up to 18 months. To find your credit score, look at your free credit report online.
- The Shopper – If you go on a shopping spree every weekend and are a big spender, a rewards credit card could benefit you immensely. Similarly to airline cards, they offer cash back and other prizes for putting expenses on your card. Rack up points to win cash back, gift cards, reduced hotel and rental car expenses, unique vacations, and much more. Take advantage of your spending to reap some rewards in return. Look for annual fees and length of grace periods before choosing.
- The College Student – Do you have little to no credit history? If so, a student credit card will be perfect for you. Credit card companies understand that young people do not have the advantage of a lengthy credit history. These cards provide high school and college students, as well as other young people, with the chance to own a credit card without high interest rates. Look to see whether the card requires a cosigner and how long the period of introductory APR is.
- The Misfit – If you do not fit into any of the above categories then you might be a misfit. Usually that means you are an adult with bad credit. Credit card companies also have cards for you. Consider getting a secured credit card. These require some type of collateral money which can be taken by the company if you default on your loan. These allow you to get a better interest rate than you could get with an unsecured credit card, where you could be paying over 20% APR. Check carefully for hidden annual fees and increases in interest in the case of a late payment.