Since we at Club Thrifty love travel, these are easily our favorite type of credit cards. The big kahuna of credit card rewards, travel cards earn cardmembers points that can be redeemed for airfare, hotels, and other travel expenses. Most credit cards work this way, but I’m using the term “traditional” to distinguish basic credit cards from rewards cards, low interest cards, and other types of specialty cards. In addition, it’s highly likely your interest rate will increase. If you don’t make your minimum payment by the due date, you’ll pay the interest plus a late fee…and your late payment will be reported to the credit bureau. Annual interest rates (also called APR, for annual percentage rate) vary, but typically fall between 15% and 20%.

But here’s the kicker: You will be charged interest on the unpaid portion of your balance. If you make at least your minimum payment, but less than the full balance, your account remains in good standing. If you pay that balance in full every month by the due date, you won’t pay any interest. The full statement balance is the sum of all transactions made during the statement cycle. Every statement includes the full statement balance, a minimum payment, and a due date. That gap between the end of the statement cycle and the payment due date is called the grace period. They’re used to conduct financial transactions during a statement cycle (approximately one month), with payment due within at least 21 days of the end of the cycle. Traditional credit cards are what come to mind when most people hear the term “credit card.” They are widely accepted in most parts of the world and operate on one of four major networks: Here is a rundown of some of the different types of credit cards that may fit your needs. There are a plethora of credit cards out there, and I bet at least one of them will work for you. Of course, rewards cards aren’t the only ones in the deck. When used appropriately, rewards cards deliver a ton of value for the money. They’re convenient, they make tracking expenses a breeze, and they offer zero-liability protection on purchases.

You can probably guess that at Club Thrifty, we’re in the second camp. Others legitimately love nerding out and finding ways to maximize credit card rewards to travel the world for free. Some avoid them altogether, finding that cash in hand is the easiest way to stick to a budget. For more about our advertising policies, read our full disclosure statement here.Ĭredit cards can be a divisive topic in the personal finance community. Should you click on these links, we may be compensated. This article may contain references to some of our advertising partners.

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