How Do Credit Cards Work:  A Guide  For Beginners

RADICALFIRE.COM

Credit cards play a vital role in building credit scores and creditworthiness. In addition, it earns you redeemable points, cashback, or miles.

How Different Types Of Credit Cards Work

How Do Secured Credit Cards Work?

Secured credit cards work like debit cards, where your credit limit depends on your security deposit.

How Do Cashback Credit Cards Work?

The credit card issuer determines the amount of cashback and qualifying purchases. Depending on the card, a general cashback ranges from 1% to 2%.

How Do Co-Branded Credit Cards Work?

The co-branded card can be a hotel, an airline, or a store credit card.

How Do Travel Credit Cards Work?

Travel credit cards offer points or miles for all eligible purchases. The accumulated miles or points can offset travel-related expenses through a statement credit.

Credit cards work as a revolving line of credit. You can make a purchase even though you don’t have the money upfront. And you’ll also earn rewards for using it.

FOR MORE ABOUT THIS POST, VISIT RADICAL FIRE