5 Types of Credit Cards to Know About

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Are all credit cards the same? Not so much. It’s important to know the difference between popular credit cards. Whether just achieving credit card debt payoff and looking for a new card to replace your old, high-interest card or just wanting to open a new one, there are plenty of cards to choose from. Here are some of the most popular types of credit cards to know about, from rewards cards to store cards.

Rewards Cards

As the name suggests, rewards cards give you points or cash back on a percentage of your spending. There may be bonus points for categories such as gas, groceries, or restaurants. Some cards offer temporary reward categories, often lasting for a few months.

You can typically redeem your points in several ways, including gift cards or merchandise. These cards can be great for everyday expenses, as you can earn rewards for things you need to buy anyway. However, it’s still important to pay off your balance monthly to avoid interest charges.

 Cash Back Cards

When you use a cashback card, you get a percentage of what you spent back in cash, or it can be used as a statement credit to pay off the card’s balance. How often you can cash out varies from card to card, but it could be monthly, quarterly, or annually. There might be a flat rate for rewards across purchases, or there could be different cashback based on categories. Categories may change every quarter or stay consistent.

 Store Credit Cards

If you’ve ever been to a department store, you’ve probably been offered a store credit card. However, they’re not limited to just physical stores, as you can find cards for the biggest ecommerce sites as well. The cards are often issued through traditional credit card issuers, such as Citi, Chase, or American Express. These often have high interest rates, so if you sign up, be sure to routinely use a credit card interest calculator to find out what your card really costs you.

 Travel Points Cards

Travel points cards are intended for people who travel frequently. You can earn rewards geared toward travel, such as airline tickets or hotel programs. These can also be flexible travel credits for any travel purchase. These might also be for a specific program, such as a hotel loyalty program or frequent flyer miles on a specific airline.

 Student Credit Cards

Do you have a short or non-existent credit history? Are you a student? You might consider a student credit card. These are “starter credit cards” aimed at younger people who want to establish their credit history. Many of these cards don’t charge an annual fee like some and may offer bonus perks if you get good grades in school. It’s a great way to build both good financial habits and your credit score.

 About Tally

 Tally wants to help you worry less about credit card debt. That way, you can get you back to focusing on the things that really matter. Through a Tally line of credit, they can help with credit card debt and help you achieve credit card payoff. The app also offers other resources, such as a credit card interest calculator. You can also learn more about how credit cards work and other aspects of financial health through the Tally blog. It takes only a few minutes to get started and check your eligibility. See how Tally can help today!

 Learn more about credit cards and how to get help with credit card debt at https://www.meettally.com/

 Disclosures: Lines of credit issued by Cross River Bank, Member FDIC, or by Tally Technologies, Inc. (“Tally”), NMLS #1492782 (http://nmlsconsumeraccess.org); see your line of credit agreement. Lines of credit not available in all states.

†To get the benefits of a Tally line of credit, you must qualify for and accept a Tally line of credit. Based on your credit history, the APR (which is the same as your interest rate) will be between 7.90% - 29.99% per year. The APR will vary with the market based on the Prime Rate. Annual fees range from $0 - $300.

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