Aug22
The Many Different Types of Credit Cards part 3
Welcome back to the many different types of credit cards - part 3! In this article we will discuss low fee/no fee credit cards and reward credit cards.
Low fee/no fee
A low fee credit card is one that has only a nominal annual fee. A no fee credit card does not have any annual fee. An annual fee is a yearly amount charged for the convenience of having a credit card. Depending on the type of credit card you have, the annual fee can range from $25 up to a few hundred dollars.
Note that there are other fees associated with credit cards in addition to annual fees. You may be charged a late fee if you do not make your payment on time. Typically there are also fees charged for taking cash advances.
Rewards
Rewards cards are credit cards that let you earn rewards when you use the card to make purchases. One type of reward a credit card might offer is cash back. For instance, you might earn a 1% cash reward for every $1 you charge on the card. With other rewards cards, you earn points based on the amount of money you charge. You can then save up your points and redeem them for a reward of your choice. Common rewards include frequent flyer points, gift cards, hotel accommodation, car rentals, travel and merchandise. If you plan to apply for one of these credit cards, find one that offers rewards you’re interested in because there are many to choose from.
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