Types Of Cards – Let See Some Types Of Cards For You To Choose From

Published on 12 February 2012 by Raffick Marday

Types Of Cards – Let See Some Types Of Cards For You To Choose From

One for every pocket seems to be the motto behind the upsurge in number and also variety of cards that are available today. No faking this, plastic money is here to stay and grow. So it is only logical that it is now available in different types, so the user can choose the most suitable one. Let’s understand the broad classification of cards can be done into the following types:

  1. Debit
  2. Credit
  3. Charge

Now getting to know each in some detail, we present the following:

Credit cards

They have a certain credit limit upto which you can spend. And then it functions like a loan which you have to pay back later. They can be of great help, especially whenever a cash emergency arises. However they are also most risky. They can run into debt which has the potential to become the dead albatross around your neck.

Charge cards

It is a unique for the reason it lets you enjoy unlimited credit. But the rider is that you have a very strict provision to pay back in the next month. A bank very carefully issues it to only individuals with a high net worth. Especially businessmen who work in a cyclical fashion wherein they require cash in huge proportions as credit initially and then later get back huge proportions reaping profits.


This card is directly lashed with your savings account. So whatever amount you have inside of it will decide the ceiling of your expenditure capability. It is imperative to know that if sometimes you exceed your account’s limit, then you will incur an overdraft. Your bank will charge a fee, which can be hefty, for the amount of overdraft.

Prepaid credit cards

These cards are one of the most convenient to use if you seek plastic money only when you are required to use it essentially, for e.g. book airline tickets online. If you do not want the card for regular use, then you can go for Pre-paid cards. You can recharge it with a certain amount and make transactions until you exhaust it. Though people call it as prepaid credit cards, it is actually a misnomer, for it functions more like a debit card and you can never bring upon yourself debt with it.

So decide for yourself amongst these cards, which one suits your needs most. Because there is no best type of card as such, there is only ‘best for you’.


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