Various Types of Credit Cards – Pros and Cons associated with each
There are several different types of credit cards to choose from on the market. It can be almost overwhelming to look over all of the options and opportunities which are offered these days by credit cards companies.
To make the process easier you need to narrow down what it is you are looking for in a credit card and weigh out the pros and cons of each card you are considering. This makes comparing cards against one another easier and can help you make a decision on one quickly and with ease.
Below are some of the basic pros and cons associated with some of the most popular credit cards options on the market.
Pros and Cons of AMEX cards
The American Express line of cards, or AMEX cards, has several pros and cons associated with them. One of the major pros of having one of these cards is that they offer their cardholders more credit card cash back than the Visa or MasterCard available today.
American Express cardholder can get up to 5% cash back on all of their purchases. An American Express card also has other pros such as giving cardholders the ability to attend exclusive events and do enter places such as first class airport lounges by simply showing their card.
One of the cons associated with American Express cards is their steep annual fees. The fees differ with each card offered through American Express.
Each type of American Express card offers different benefits. Each card also features different requirements for paying off balances.
Some American Express cards require the balance to be paid in full at the end of the month while others will allow for the balance to be paid off in monthly payments. The annual fees vary with each of these card options.
Diners and Affinity Cards
The Diners Club card was originally designed for people who traveled a lot and were putting items such as an airline ticket and a dinner on them. These cards have a great pro for their cardholders great reward benefits for each time they use their card.
Some of the cons of these cards is that charge a $35 for them to be used by unauthorized card holders and if your Diners Club card does not have the MasterCard logo on it then it will only be accepted in a limited amount of places.
Affinity cards offer many different pros and cons. These credit cards are ones which are offer through one organization and either Visa or MasterCard. The logo for the organization which the card is offered through will be printed on the top of the card while the Visa or MasterCard logo will be present at the bottom of the card.
These cards are offered through several organizations. The pro of these cards is that are accepted any place where Visa or MasterCard are accepted, no matter where you obtained the card originally.
The cons are that all of these cards offer varying fees and benefits. Be sure to carefully review the options available with any affinity card before you apply.