Types of credit cards

Surely you will have noticed that there are different types of credit cards, how are these types different? What advantages and disadvantages does each of them have?

You probably know that a credit card is an instrument that gives you access to financing on your purchases. And the importance of this instrument to form a credit history that allows you to access other financing. But you may not know the types of credit cards that exist in the market.

Types of credit cards

Types of credit cards.

Traditional credit cards

They are the traditional credit cards issued by banks or financial institutions. Generally, banks issue them acting as franchises of international credit card brands. Thus the brand gives global acceptance to this credit instrument, while the bank is responsible for collections.

The main credit card brands that work in our country are

The main credit card brands that work in our country are

  • Diners Club
  • American Express
  • Visa
  • Mastercard
  • Yes card

If you have this type of credit card, you can pay with it in countless shops and service companies. The establishments that accept them are innumerable, both in nature and quantity.

Another advantage that it offers you is that some of them can accept charges in foreign currency. In such a case, you can use them to cancel both trips abroad and online purchases.

On the other hand, when using this type of card as payment instruments, you will not get additional discounts on purchases. On the contrary, some discounts offered by stores do not apply to this payment instrument.

Department store cards

cash

They are credit cards issued by department stores, usually in association with a bank. In most cases, they are not related to international credit card brands. Examples of this type of credit card are:

  • Suburbia card .
  • Iron Palace Card .
  • Liverpool card .
  • Soriana Card

If you have any of this type you can enjoy attractive discounts at the issuing store. You may also enjoy points accumulation programs, which you can exchange for some kind of prize.

At the other extreme, you must be very careful with its use, since they usually have high interest rates. And be aware that she will only be accepted in a few stores, so she will be of limited use.

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