Credit cards can help you if you choose to use them wisely, or they can bring you a whole new world of financial pain if you squander them.  You can also make credit cards work to your full advantage if you go with the type which suits your financial condition.

If you have experienced credit difficulties in the past, you can opt for one with higher rates; if your credit status leaves much to be desired, there are banks that will approve a secured credit card for you.  Secured credit cards let you place collateral on your credit by depositing money on a savings account.  This is the best option for people who want to rebuild their credit, especially after a bankruptcy.  But if your credit score is exceptional to begin with, you can secure a higher limit for your card by applying for gold or platinum status; these carry the same interests, but on a slightly increased yearly fee.  The road to obtaining such statuses is uphill though.  You should have an annual income of at least $35,000 dollars to qualify for a gold card; this requirement is even higher for platinum cards.

People with good credit are the usual targets of pre-approved credit cards; these afford a higher limit than their current cards (as an opening pitch), though some involve a catch.  Usually, this comes in a fine-print provision which authorizes the card company to transfer the full balance of the current card to the new, increased-interest account; if you are considering on going for a pre-approved card, make sure you read everything thoroughly before you sign the documents.  If you opt to decline the offer, ensure that you get rid of the evidence at once, by shredding or tearing it to pieces with your own hands.  This will prevent other people from going through your financial information, with the intent to impersonate you.

With these said, there are basically three kinds of credit cards which are available for you – this is if your rating is average at the very least.  Bank cards provided by banking institutions like MasterCard and Visa, travel and entertainment credit cards like American Express, and house cards which are only recognized within a specific store chain (such as oil and phone companies, Sears, and local department stores).  T&E credit cards follow the same provisions and terms wherever you choose to use them.  Another, less well-known card is the affinity card.  This is basically a MasterCard or Visa which carries both of the organization and the lender’s logos.  These offer perk benefits for its users, such as frequent-flyer miles or perk points for merchandise.

With such a variety, it is expected that there is no one card which is ideal for everyone.  The best card for your particular case should be the one which is accepted in the stores you frequently shop, and charges you with the least amount for the services you need.  Most establishments usually honor both MasterCard and Visa cards, so if you only make your purchases within the U.S. you potentially wouldn’t need to carry both of them at one time.