Home > Credit Cards > Introduction to Balance Transfer and Rewards Credit Cards

Introduction to Balance Transfer and Rewards Credit Cards

Of the various types of credit cards balance transfer credit cards and reward credit cards are the most popular one of recent times. While the balance transfer card helps you consolidate your debts, the reward credit card showers a wide range of prized for the amount you have spent using the credit card. The advantages and disadvantages of both the cards will help you choose the type of card you need right now.

Balance transfer card is a type of low interest credit card, which helps you to consolidate your debt. It is especially helpful if you have too many credit cards with balance on them. Because the interest rate is low you can transfer all your credit card debt on to the new card and reduce the burden on the interest of your debts. The convenience of this type of credit cards includes one bill and low interest rates. But you should cautiously work out a plan and clear all your debts within the low interest period. If you do not plan your debts repayment, the card could prove to be fatal.

Reward credit cards are the products of well thought out marketing plans that have utilized the customer psychology for its marketing purposes. Rewards credit cards are the ones that offer rewards or bonuses upon the specific amount through the credit card over time. Usually points are awarded on every purchase you make with the card and once your points reach a limit you can redeem them and get prizes, such as entertainment events, purchases, travel, and other discounts offered by the financial institutions. Although reward credit cards make shopping experience a great fun, you should be cautious and spend within your means to avoid getting into financial problems in latter stages.

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