A credit card is a piece of rectangular shaped plastic which can be produced to a store instead of money in a transaction. These can be obtained from any financial institution like banks, which will do so on the promise that the card owner would pay the money in installments. They usually differ from a cash card and a charge card because the loan you receive through the card is not mandatory to be paid in full amounts. A card has a standard size and shape which is 8.57cm long and 5.4 cm in breadth. The first mentioned usage of these were in 1887 in a Utopian novel. Later on coins, pieces of metal and gradually a piece of plastic had evolved to perform the function of the card in History. Given below are four types of commonly used credit cards in our daily transactions.
Business credit cards
A business credit card are specially designed for business purposes only. Any business organization, small scale or big can benefit from this. In the recent years the usage rate of this type have increased where as many benefits are provided for the card holders. They are usually difficult to get hold of, unlike personal ones, but they are the best credit cards for a business.
Secured credit cards
These can be owned by a customer only if he or she holds a deposit account in the bank. Again, the deposit has to be at either the same amount or as twice as the amount of the value of the card. The benefit the card holder has in this credit card system is that, if by any chance he or she was unable to pay the monthly, that amount can be taken from their deposit account. Therefore the card holder and the bank will not face any monetary issues. Many personal card holders consider this card system to be the best credit cards for them.
Although not an actual credit card, a prepaid card use the money stored by the card holder or someone else, in his respective bank account. But the prepaid card can be taken around as a credit card, but will not fall under the category of a debit card. A prepaid card is convenient for the payees of developing countries as this card can be used globally.
A Digital card or virtual card is a type of online based cards. They do not exist physically but can be used as one for online transactions.
From the above mentioned types, undoubtedly many have at least one type of them. These have made our life easier by making our wallets lighter and lighter.