If you’re in the market for a new credit card, you’ve got a lot of options. How to use a credit card? There are cards that offer cash back, others with sign-up bonuses and still others that target specific types of consumers. You can find many types of credit cards online or through your bank or credit union.
Cashback credit card
Cashback credit cards are a good option for those who want to earn rewards without paying an annual fee. These cards typically offer 1% to 5% cash back on all purchases, and you can redeem your cash back for statement credits, gift cards, or merchandise.
- The Capital One® Quicksilver® Cash Rewards Credit Card is a good choice if you’re looking for a simple card with no annual fee. Its sign-up bonus is higher than most other cashback credit cards (1.5% cash back on every purchase), but it doesn’t come with any welcome offers or other special perks to sweeten the deal.
As financial planners like SoFi state, “Signing up for eligible rewards programs can help credit card holders make the most of their card.”
Students
- Student credit cards are designed to help students build up their credit history, and they’re a great option for anyone just starting out.
- The low credit limit and the fact that you’re using plastic from someone else can make it harder to get yourself in trouble with spending.
- If you’re still living at home or at a college dorm, try opening an account with your parents’ bank so you’ll have more security as well as easier access to funds if needed. If not, look into local banks that partner with colleges and universities near you for discounts on tuition or student fees—some even offer free checking!
Small business owners
Small business owners can benefit from the flexibility, rewards and other benefits that come with using a small business credit card.
- Small business owners can manage all of their accounts, employees and vendors with one card.
- Many small businesses have multiple bank accounts for each employee or vendor. Having separate cards for each account helps them to track spending more easily than with just one card for all of their employees and vendors.
Frequent travelers
Frequent travelers should look into travel rewards credit cards. These cards are best for people who travel a lot and want to earn points or miles to use towards future trips. Frequent travelers will also benefit from having no annual fee, which means they can keep their costs down while earning rewards at the same time.
Travel rewards credit cards can be used in a few different ways:
- Some travel reward cards have point programs that allow you to earn points by using the card for everyday purchases and redeem those points directly through the card company or by transferring them over to other loyalty programs like airline miles.
- Other travel credit cards allow you to earn airline miles each time you use your card on a qualifying purchase (some airlines are more generous than others). The great thing about these types of cards is that they tend to have very low annual fees, so they won’t break your budget when used responsibly!
Hoping that now you have a better understanding of the different types of credit cards and what they can offer you. If you’re looking for more information on specific cards, it is recommended to reach out to your bank or consider signing up as a member with reputed card issuers.