They are one of the most basic alternatives to cash and are fast becoming more popular for safety reasons.
Credit makes purchasing goods and services much easier, while also giving you the ability to take advantage or sales or special offers without worrying about the need to have the money on hand immediately.
It is important to remember that traditional cards are actually loans, unlike prepaid visa cards, and that you will have to repay at least a portion of your debt each month.
Today, credit have made the lives of all manner of people from students to employees and even businesses much easier, because their spending power is increased.
Since there are so many different types of people who need or want a credit card, there is not a "one-size fits all" solution.
Standard Credit Cards Traditional cards are one of the most popular and most basic.
It usually carries a mid-range interest rate, and most is used to make everyday purchases from groceries to minor shopping sprees.
Those who are creditworthy can apply for this type of card at their bank or other lending locations, but remember that unlike a prepaid visa card this one will require you to pay back your debt each month.
Platinum Credit The platinum or gold credit card is a definite step above the standard card and about two steps above the prepaid visa card.
This is usually issued to people who already have a good creditworthiness and are completely capable of repaying higher credit limits.
Platinum cards have much higher credit limits than gold cards and larger withdrawal capabilities.
This allows individuals to pay for higher priced products and allows the owner to take care of both their needs and wants.
The people who this type of card is offered to are those that have very good creditworthiness, which can translate to better jobs and more secure resources.
Student Credit A student card is very different then the more traditional types of cards available.
They work like traditional cards but allow you to learn how to budget your money much like the prepaid visa cards, only with a monthly bill instead of loading your prepaid visa card account.
This card is specifically tailored to meet the needs of students or young adults and many work the same way a bank account or student loan does.
It is vital to understand the terms of this type of card before you commit, but one advantage is that a student card will have a lower interest rate.
This gives the student the ability to save their money.
Business Credit The business credit card is usually offered to those that conduct business on a daily basis.
This type of card has many bonuses and incentives that help the average businessman or woman with their monthly spending.
They usually have longer credit terms which can allow those conducting business more freedom to make the purchases they need to keep their business running smoothly.
Once you decide that you need to apply for a credit card and a prepaid visa card does not give you the spending power you will need to decide which card fits your needs.
You will need to know if you are financially able to handle the repayment of your debt and if you are really ready for the huge responsibility that a credit card requires.