by Emily Hechler 
Credit cards can be great financial tools when you use them wisely. If you struggle paying your balance each month, it can be easy to grow your credit card debt. However, if you use your credit card wisely, you can reap the benefits of not having to pay for your purchase up front. Which credit card is the best option for you? Here, we discuss the common types of credit cards along with how you can beneficially use them.
Rewards Credit Card – A rewards credit card does as its name implies. Cardholders get access to exclusive perks. Many financial institutions and credit card companies offer rewards credit cards that differ in benefits. A rewards credit card is a great option for those who use their credit card regularly for everyday purchases such as groceries, gas, and dining out. For each dollar you spend, you accrue reward points. As you build your point balance, you can redeem your points for rewards such as gift cards, travel, merchandise, or cashback. Alltru’s Rewards Visa has no annual fees, so you can benefit from your spending and rewards. This card also has a low introductory rate for balance transfers for 12 months*.
Low Rate Credit Card – A low rate credit card is great for those who tend to carry a balance month over month. When you use a credit card, interest is added to your total bill each month. If you carry a balance on your credit card from one month to the next, you’ll pay interest on that interest too. With a low rate credit card, your interest rate is lower than with other credit cards, resulting in less interest you have to pay. Alltru’s Low Rate Visa also has no annual fees and a low introductory rate for balance transfers.
Secured Credit Card – Secured credit cards are designed for those with poor credit history and they work like a normal credit card. However, the card is secured by the funds in your account. This gives you low-cost credit without high fees or interest rates. By using this card and paying off your balance each month, you can help rebuild your credit. If you need a credit card and can’t get approved for other credit cards due to a low credit score, Alltru’s Blue Secure Visa is an accessible option.
Store Credit Card – Store credit cards function as regular credit cards but come with exclusive perks for using the card on purchases from the retailer. For example, you can use Target’s RedCircle Mastercard anywhere, but will get an extra discount on purchases from Target. Store credit cards often have rewards programs similar to rewards credit cards. Before opening a store credit card, carefully evaluate the perks. It may take several months to accumulate meaningful rewards or discounts.
Charge Credit Card – Charge credit cards have a few major distinctions from other credit cards. First, charge credit cards don’t have spending limits. This means you can spend as much money as you want with a charge credit card without reaching a limit. However, you can’t carry a balance with charge credit cards. You must pay the full bill each month to avoid high late payment fees. Charge credit cards are usually only available to those with high incomes and high credit scores.
Many financial institutions and other companies offer credit cards. This is because companies can profit from the fees and interest you pay. At Alltru Credit Union, we focus on providing meaningful banking solutions for the St. Louis community. This means we offer accessible credit cards with lower interest rates than others so you can access the financial tools you need in a cost-effective way. We’re a not for profit that focuses on providing quality service to our members rather than making a profit. When you’re ready to apply for a credit card, come to us to start.
