In the US credit card companies deal separately with consumers with various types of credit history. The major categories in this context are excellent credit, bad credit, good credit, no credit history and fair credit. The prevailence of American credit cards assists consumers to manage their expenses, and if used properly can be a time saver. Unfortunately a lot of people end up with debts on their cards that they are paying high interest rates on without realising it. If you default on credit card payments, or have done so in the past, you may need to clean up your .
There are various types of credit cards that are available in the United States - low interest credit cards, airline credit cards, balance transfer cards, business credit cards, instant approval cards, student credit cards, reward credit cards, prepaid and debit cards, cash back credit cards and credit card specials. There are several types of rewards credit cards available in the US - points, hotel or travel, retail, home improvement and gas cards.
Business credit cards are best suited for businesses, entrepreneurs and professionals to manage their business accounts. They are used for several reasons, such as purchasing official supplies and paying for official trips. Some of the leading business credit cards available today are Citi Professional (SM) Cash Card from MasterCard, Advanta Platinum Business Card and Simply Cash Business Card from American Express.
A secured credit card is one in which the cardholder is required to deposit a certain amount as an escrow (asset). In case a cardholder stops making payments, the bank has the authority to withdraw money from the escrow. This type of credit cards is suited for those with no credit or poor credit. Among the more popular secured credit cards are Orchard Bank Secured MasterCard and New Millennium Bank Secured Gold Visa or MasterCard.
Unsecured credit cards are traditional credit cards or charge cards. In this case, the card issuer allows the cardholder to enjoy a credit limit sans keeping any assets. Typically, this type of credit cards is difficult to get, since it requires the cardholder’s credit history to be excellent and unblemished. This means that the cardholder should not have any debts outstanding. Some of the popular unsecured credit cards are First PREMIER Bank MasterCard, Citi Diamond Preferred Rewards Card and Discover Motiva Card.
There may be several types of unsecured credit cards. These include: