Credit Cards: Non reward Type vs Reward Type
You've finally come to that stage in life when you can afford to
own a credit card, not as a supplementary cardholder but as the
principal cardholder. Finally, you've earned the right to have a
credit card in your own name and to be able to purchase whatever
you want without having to ask anybody else's permission. But
now that that time has come, you find yourself in a quandary -
what type of credit card should you apply for?
There are just two basic choices for you - do you want a credit
card that offers rewards and one that doesn't?
The Non Reward Type of Credit Card
These credit cards do not offer you any reward points or bonuses
no matter how many times you use their credit cards or how
prompt you are when it comes to credit card payments. Instead,
this type of credit cards allow you to waive interest charges
for a certain period of time or avail of lower interest rates
than those offered by reward types of credit cards.
Basically, there are two choices that you're given when it comes
to the non reward type of credit card. The first one would be a
credit card that offers 0% APR intro rates. When you get
yourself this kind of credit card, you'll be able to purchase
anything without having to worry about contending with high
interest rates. But the 0% APR is only applicable for a certain
period of time because it's an introductory offer. Once it's
over, the APR will revert to normal.
The second type of non reward credit card is the low interest
ongoing APR credit card. Although it's not 0%, the interest rate
may be lower than what the new APR would be for a credit card
with 0% APR intro rates.
The Reward Type of Credit Card
If you don't find yourself excited with all those low interest
rates being offered by non-reward types of credit cards then
perhaps you'll find your heart racing with credit cards offering
rewards.
With this type of credit card, the interest charge is usually
higher but you really don't care about that, do you, if it means
being able to win a iPod Mini later on, does it? With reward
types of credit cards, frequency of use and promptness of
payment matter a great deal. There are also a whole variety of
rewards being offered so you're surely be able to choose one
that you truly desire.