There are many types of credit cards, varying in interest rates, annual fees, additional facilities and more. One financial institution may offer a choice of all types of credit cards, while another may offer only one.
Interest Free Credit Card
An interest-free credit card means exactly that: it offers a 0% interest rate on your purchases, which means you don’t have to pay any additional interest if you don’t pay off your balance within the allotted time.
Often, credit card lenders will give new holders an interest-free period as an introductory offer. Recently, however, more and more financial institutions have started offering credit cards with a permanent 0% interest rate, choosing instead to charge their borrowers a monthly fee.
Read More: Guide to Interest Free Credit Cards
Credit Card without Annual Fee
Some credit card companies charge an annual fee for certain products to become cardholders, usually in exchange for additional rewards they offer such as airport lounge tickets or free insurance.
Cards that do not offer such facilities may choose not to charge any annual fees, classifying them as ‘no annual fee credit cards’. Some cards may also offer this as an introductory offer, and give you one year free of the annual fee.
Credit Card Rewards
Rewards credit cards are credit cards that offer just that: rewards. These usually come in the form of points, which are earned on everyday purchases made on the card. These points can then be redeemed to pay off your monthly balance or purchase other items, such as retail items or flights.
Frequent Flyer Credit Card
Frequent flyer credit cards are another type of gift card, however these are specifically targeted towards frequent flyer programs and work with airlines such as Virgin Australia or Qantas.
Instead of earning generic points on a credit card, those with a frequent flyer credit card will earn frequent flyer points which can then be used to buy flights, book holidays, and upgrade your travels.