5 types of credit cards that will help you save
Last Modified 16th of February 2021
Credit cards are largely regarded as a simple and efficient way to throw money down the drain. While this may be true in some cases, what can you do when you have taken out credit already?
Your credit cards can help you benefit from all that – and loads more. Here are five types of credit cards that will help you save on everything from money to air miles:
Frequent Flyer credit cards
If you’re an avid traveler, be it for leisure or business purposes, you can always look into airline offers from your bank. Several major carriers now provide bonus programs that allow you to accumulate points or miles for each ticket purchase. Earn just enough points to either spend less on your plane rides, or to save up for the trip of your lifetime and your dream holiday, to some remote exotic location.
Whatever you choose, you’ll be glad to know that airlines repay their loyal customers with perks that allow them to save up on ticket prices.
Low interest credit cards
While a low interest credit card is something most holders aspire to, not many of them are aware of the fact that they are probably paying more interest right now than they ever should. If you took out your credit card in those care-free days pre-global recession, this might just apply to you, too.
As such, our recommendation is for you to do some thorough online research on the matter and see what low interest credit card you can qualify for. Chances are, you’ll be quite surprised with your findings. Several banks, for instance, like to repay frequent shoppers with a low ongoing purchase interest rate.
Cash-back credit cards
The operating principle behind cash-back credit cards is that you, the card-holder, are offered exclusive access to several special offers from partnered retailers that associate with your bank or lending institution of choice. The system is similar with that of rewards cards, only, instead of gifts and special offers from shops and stores, you receive a part of your money back on current purchases.
This type of credit card will appeal to people who make frequent purchases with their cards, and who would like a bit of cash, for even more successful regular shopping sprees.
Rewards credit cards
Rewards credit cards operate according to the simple principle of bonus point accumulation. Make enough purchases with your card, collect enough points and you, too, can become eligible for lower prices from your favorite brands and retailers.
Ever thought you will not be able to afford to replace it any time soon? Well, there are lots of banks out there that have affiliated themselves with various retailers.
No annual fee credit cards
Credit cards with no annual fees might sound like a dream come true for many, yet, as you might expect, not everybody can qualify for such a card. The main prerequisite, of course, is a good credit rating and a clean track record of lending from financial institutions.
Beyond this, however, such credit cards are mostly suited for people who don’t use their credit cards too often, who don’t use them to pay for regular, day-to-day purchases and who only make use of their cards when they are strapped for cash. As such, if you would like to apply for a credit card to use as a safety net, whenever times are tough and you need a bit of money-security, a no annual fee card might be precisely what you need.