Types of Credit Cards - Online Credit Cards

Types of Credit Cards

Paying for the products and services that you need on a daily basis has never been easier. The convenience brought about by online credit cards has made it possible to pay for almost anything without the need to carry a lot of cash in your pocket. However, not all online credit cards are created equal.

Today, there are several types of online credit cards that you can choose from which will surely fit your needs as a consumer. Below is a quick yet comprehensive list of the type of credit cards that you can use to conduct financial transactions.

First, there is the typical credit card where you will basically borrow money from the credit card company who will initially pay for the services or products that you purchased. This will be paid back with corresponding fees, charges or interest rates once you receive your monthly statement. Traditional online credit cards will also allow you to have a credit limit which determines the maximum amount of charges that you can incur.

Second, there is the charge card which does not include interest rates or extra charges, provided that the full amount purchased is paid in full for each month.

Third, there is another type of credit card used for general purposes - which range from buying goodies from stores, to paying for your dinner in restaurants, to withdrawing a cash advance against the credit card that you are holding. AmEx or American Express, Discover, MasterCard and Visa online credit cards are general-purpose online credit cards.

Fourth, gas card is an example of a sole-purpose credit card, where you can only conduct one type of financial transaction or use the card in a single store.

Fifth, there is the stored value, prepaid card or smart cards where a predetermined amount of funds is charged on the account. Once this amount is spent, you would either need to purchase a new card or 'charge' the card again for future financial transactions.

Now that you know about the types of online credit cards that you can use, all you need to do is analyze your spending needs, as well as your financial status to get the credit card that will suit your lifestyle in the best way possible.