Remember when you saw that awesome Seahawks jersey signed by Matt Hasselbeck, but you did not have the cash in the bank to buy it right then and there? Situations like this require you to to buy a credit card and examine credit card interest rates. As one of your first steps to enter the financial world, the credit card you choose can have a big impact.
Seattle Banking Rates has compiled a short list of the most common credit card types, with each one’s particular advantages. Consider which one fits your situation best before committing to a Seattle credit card.
Secured Credit Card: When you apply for this card, the bank will require you to give them a secured deposit which they use whenever you default on your payments. As a result, your credit limit will usually be equal to your deposit. Look carefully to determine what the minimum and maximum deposit amounts are, if there are any eligibility restrictions, and how quickly the creditor can take your deposit after a late payment.
Unsecured Credit Card: These cards are usually issued to people with good credit scores, with a credit limit issued on an individual basis. Essentially this card serves as a way to obtain more cash than you actually have in the bank when you purchase something.
Reward Credit Card: Reward cards offer the extra perk of letting you earn cash back, free travel, and other gifts whenever you use them.
Debit Card: These cards require you to have a balance in the bank which you can add and subtract money from using your card. No interest is charged, but overdraft fees can be high. Some debit cards also double as credit cards.
Student Credit Card: As a young person, this is one of the best cards to get. It offers low introductory interest rates, free rewards programs, and the opportunity to own a credit card without having an extensive credit history. Watch for high APRs and make sure to pay your monthly bill on time.
Once you decide which card is right for you, look to Seattle Banking Rates to provide you with the latest credit card rates and connect you with the newest offers on the market.