Nowadays it is not a secret that different credit cards have different perks. Some of them are aimed to be cost-saving for travelers. Others provide different features such as cashback, lack of annual fee and so on.
That’s why you will always find something for you whether you are addicted to traveling or keen on shopping or low-income earner. In this article, you will find out which credit cards exist and in which particular niche they can be used.
But before we move on to three credit cards which you must have it is important to clarify the fundamental moments about these cards.
We are going to divide cards by the types of reward system. The reward that you receive can be cash, points, miles (if it is a travel card) and so on. The way to earn these bonuses is easy and sounds like this: spend more cash – receive more bonuses.
Remember that perks which you receive are useful as long as you are able to pay the creditor debt on this card every month. No matter how cool bonuses are when not paying your monthly credit will simply lead to the decline of your credit score.
Three types of credit cards
Now as you are aware of the reward principle we will speak directly about three credit cards which you must have.
A card for everyday use
Commonly known as a card which you use to make everyday purchases it is used in most situations such as an everyday trip to the supermarket.
This card is perfect if you only start to explore the world of credit cards. Most of these cards are working on a point system. When you pay with this card for example at the gas station or at the restaurant you receive points. Usually, a particular amount of dollars spent equals one point. In every bank this particular amount is different. After you gain enough amount of points you can exchange them for a reward. There is a variety of rewards you can get. They are coupons, different discounts in special places such as the cinema, restaurants and so on.
Still, there is another type of everyday spending card that provides you with cash. This reward system is called “cashback”. This is how it works: you receive a small percentage of cash received back from your purchases. In most stores, this percentage won’t be higher than five, but there can be special offers when you will receive around 15 percent of cash back in particular stores.
Also, don’t forget that your bank account is candy for hackers. That is why it is a wise choice to get an everyday spending card because it has the highest security level. Usually, you will receive an SMS when you make a purchase so it is pretty easy to spot transactions which you didn’t make.
A card for travelers
If you are addicted to traveling and do it regularly it is reasonable to get a travel card in your wallet. It doesn’t matter where you travel north or south east or west in every place on the earth you will always save a huge amount of money with this sort of card.
There are countless types of travel cards. Some of them work on the point system. Here is working the same principle as with everyday credit card. You will earn one point for a particular amount of dollars spent. However, the bonuses which you can get for your points are targeted for travelers. For example, you can redeem a free flight, discount on accommodation and other useful perks for travelers.
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Other travel cards let you withdraw a percent of cash from all the expenses you made while traveling. Usually, this happens every month and only if you reach a particular amount of cash spent. Moreover, there are types of cards which count miles which you have flown while traveling. After that, the amount of miles turns into points or turns into free miles for which you can order a free flight.
When it comes to travel cards don’t forget that if you prefer certain airlines or hotels and travel only by them than it is important to check if your favorite airline/hotel provide their own travel card. If they have a travel card than order it without hesitation because usually, they provide better bonuses than banks that try to cover all companies in the tourism sector. For this reason, bonuses which banks provide are not as good if you pick a particular airline or hotel.
To other perks of the credit cards, we can relate international currency conversations which can save some cash for you but remember that often travel cards come with higher interest rates and usually have low acceptance level because of the requirements to the applicator.
And the last thing to know about the travel credit card is that it is useful only while you travel. Of course, you will receive some bonuses even if you will use it for everyday purchases. But for this thing, it is better to have an everyday spending card because it provides you with better perks for everyday use.
The rest types of credit cards
Speaking about three credit cards which you must have there is no definite third card which you must have. This third card can be any card which you like because currently there are credit cards for every sphere of life.
For example, nowadays it is very popular in retail stores to offer customers special reward cards which provide discount only in the store where you ordered this card. It is a good decision to get this card if you visit one certain store often. Besides discounts, retail stores offer access to special events, goods, and other perks.
Almost everyone offers reward cards starting from cinemas, restaurants and ending with sport events organizers and so on. Of course, you can pay in all stores with your everyday spending card and still get good benefits but if you have hobbies which are connected with particular stores it is always smart to order a card of this store because you will receive better perks.
So that was the list of all credit cards which you can have in your wallet. Now depending on your preferences, you can get one or more of these. Remember that everyone should have an everyday spending card to make bargains but for people who are deeply interested in something, it is reasonable to save on your hobby and get more credit cards.