Types of California Credit Cards
California credit cards can be a valuable financial tool if used correctly. In fact, a credit card can allow you to do more than just borrow from a revolving line of credit. You can also take advantage of special perks and features that certain types of cards offer to further maximize your money. Here’s a look at the most common types of credit cards available to California residents and how they might benefit you.
Rewards Credit Cards: A rewards card gives the cardholder added benefits for charging expenses. Rewards can take many forms, but often, they are cash back, redeemable points or travel miles.
For example, a particular credit card may return 1 percent of your balance to you in the form of cash back, or reward you with free airline miles when you charge items from airports, hotels and gas stations. Each rewards card works differently, but you may consider one if you tend to use your credit card a lot or for specific types of purchases.
Business Credit Cards: These cards are designed specifically for use by companies rather than individuals. A business card can help keep company finances separated from personal accounts, allow multiple employees to share a single line of credit and provide special perks or discounts directly related to that business.
Secured Credit Cards: A secured card works differently than a traditional credit card. Rather than being extended a line of credit to be paid back each month, a secured card holder backs their account with a deposit ahead of time, so future charges are already paid.
Secured cards are ideal for anyone who has not yet established a credit history or has damaged credit that makes credit card rates too high. Using a secured card over time will help build credit to the point a traditional line of credit can be obtained.
These are just a few of the card types available in California. However, no matter what type of credit card you choose, remember that rewards, perks and discounts mean nothing if you don’t pay your balance on time. Even the best California credit card rates can be expensive if you carry a balance often.