Before applying for a secured credit card, it is good to be familiar with the different types of cards that are available to make sure that you get the one that will suit your needs. Some of the most common types include the Standard Credit Cards; this one allows a customer to have a revolving balance up to a certain limit.
In this case, funds are deducted once a purchase has been done and once it is repaid the funds are made available once again. In case a customer has not cleared the balance by the end of the month, and then a finance charge is raised. These types have a minimum payment period that must be met by a certain due date that has been set if not, a fine is charged. Insensitivity and benefit that go beyond that of normal cards are offered by premium credit cards.
It includes Gold and platinum which offer reward points, cash backs etc. They come with minimum requirements and also they have a higher fee than the rest. The common factor between standard and premium is that they both offer zero percent interest cards, student card and many more. Charge cards on the other hand do not have limit.
This means that, at the end of every month a customer is supposed to have cleared the full balance. Failure to which affine is charged or the card is subjected to cancellation depending on the card agreement. There is nothing like minimum payment or finance charge when it comes to charge cards since the balance is supposed to be paid in full.
The other type is the Limited Purpose Card. This type of card can only be use on certain areas. An example of where payments can be settled using limited purpose cards is in terms of store and gas card. This is because it can only be used like credit cards with minimal payment and financial charges. The only card so far that needs the owner to first of all, load money on it before using it is the Prepaid Credit Card.
After purchase funds are withdrawn directly and it doe not matter how much there is because one purchases according to what one has.