Credit cards have come to the rescue of people with hot pockets. They, nowadays, put their trust in the innovation of credit cards where they need not carry large sums of money with them; instead simply carry a credit card which is linked up with their bank account enabling them to make payments without batting an eye.

It is a trend, now, to make payments at a hotel, restaurant or a departmental store/ mall using a credit card. Because of the fear of one's bank account details being swiped and stolen, more and more credit cards are made secure so that even if a credit card is stolen, the money in one's bank account stays safe.

Credit cards now are of various types with different fees, interest rates and rewarding programs. When applying for a credit card, it is important to learn of their diverse types to know the one best suited to their lifestyle and financial status. Different types of credit cards available by banks and other companies/organizations are briefly described below.

Standard Credit Card: This is the most commonly used. One is allowed to use money up to a certain limit. The account holder has to top up the amount once the level of the balance goes down. An outstanding balance gets a penalty charge.

Premium Credit Card: This has a much higher bank account and fees. Incentives are offered in this over and above that in a standard card. Credit card holders are offered travel incentives, reward points, cask back and other rewards on the use of this card. This is also called the Reward Credit Card. Some examples are: airlines frequent flier credit card, cash back credit card, automobile manufacturers' rewards credit card. Platinum and Gold, MasterCard and Visa card fall into this category.

Secured Credit Card: People without credit history or with tarnished credit can avail this card. A security deposit is required amounting to the same as the credit limit. Revolving balance is required according to the 'buying and selling' done.

Limited Purpose Credit Card: There is limitation to its use and is to be used only for particular applications. This is used for establishing small credits such as gas credits and credit at departmental stores. Minimal charges are levied.

Charge Credit Card: This requires the card holder to make full payment of the balance every month and therefore there is no limit to credit. Because of the spending flexibility, the card holder is expected to have a higher income level and high credit score. Penalty is incurred if full payment of the balance is not done in time.

Specialty Credit Card: is used for business purposes enabling businessmen to keep their businesses transactions separately in a convenient way. Charge cards and standard cards are available for this. Also, students enrolled in an accredited 4-year college/university course can avail this benefit.

Prepaid Credit Card: Here, money is loaded by the card holder on to the card. It is like a debit card except that it is not tied up with a bank account.

Credit Card - Useful Tips, Information