Credit Card : Meaning, Pros and Cons and also types of credit cards

There are different modes of payments and users decide what method is serving them for good. A credit card is also one of them. The credit card is issued by a bank and its operation is pretty easy to understand.

Suppose you owe a credit card and you want to buy something, it does not matter whatever amount the good is charging from you because by inserting a credit card, the amount will be paid by the bank. Now the real struggle comes into the picture.

Once you have spent whatever amount, you will have to return that amount in 25-30 days. But if the duration of time gets extended, so is your interest will rise. Before deciding whether you should be a credit cardholder or not, it is necessary to look at the pros and cons of the credit card.


  1. It is not a matter of concern if you want something worthy of large amount, you don’t have to wait whole life as the bank will pay for it.
  2. In this world full of treachery, one cannot keep a large amount of cash with him/her. Also, it is more preferred than cheques.
  3. If you spend at a sustainable rate, then the credit card will build up a useful credit which will be coming to your aid in the near future, for example travelling via airlines or staying in hotels.
  4. A credit card also provides a reward point which is generally 1% or more than the money you have invested.


  1. As the credit card does not come with a limit over the amount to spend, you can literally sink into the heap of debt.
  2. As it is the easiest method to spend more and more, the credit score of yours can decrease at a rapid rate.
  3. As bank charges interest over the amount after some days, and you fail miserably to pay the amount you have spent, the interest percentage over a small amount will be large enough to never look for a credit card.

There is a term called as co-signer which is apparently your friend or family who signs the contract that if you fail to make the payment, then they will clear your dues on your behalf.


Before applying for a credit card it is necessary to choose what kind of credit card are you looking for? There are several types of credit cards on the market.

  1. Standard Credit Card

Standard card, also known as plain-vanilla card is basically running out of reward points, i.e. making the card less complicated than others. It is the simplest form of a credit card which does not build you a credit but likewise, it is expected to make the payment at earliest to avoid late penalties.

  1. Balance Transfer Credit Card

This card is considered as the best option for a better promotional offer. The thing about this card is that it will demand good credit from your side to qualify for a card.

  1. Reward Credit Card

This is just opposite to the standard credit cards. It is a famous option for travellers and businessman. This card offers the reward points in the form of cash-back or free travelling and hotel stays.

  1. Subprime Credit Card

There are many people with bad credits, and although this card has many loopholes and is not used by many peers, still it has managed to slide under the sleeve of many users as they cannot get credit somewhere else.

  1. Business Credit Card

There are many businessmen here who need a separate section for their personal and business aspects. This credit card allows them to go with the transaction separately.