Credit cards are not uncommon today. The idea of credit cards began over a century ago, but that initial idea is very different to the way credit cards function today. It’s rare to find a person that does not carry a credit card in his or her wallet. Most of the time, those who don’t have credit cards are ones who haven’t begun to use them at all or those who have used them and abused them in the past.
Credit cards are something that’s almost a rite of passage in today’s day and age. Most people get their first credit card just before college or during college. Most teens begin to get jobs in high school anyway, and most parents require that their children are capable of paying their own bills in order to get a credit card. This is not always the case, but it probably should be because getting a credit card is fairly easy, especially getting a card designed for someone who doesn’t have credit history yet.
This is one of the many ways that credit cards are being used today—to establish credit history and credit standing. The way a person uses his or her credit card will later on determine credit standing. The better your credit standing, the higher your credit limit could be. There are even credit cards out there that are virtually limitless. That’s certainly something to aspire to, but it’s not that easy to get there, especially if you don’t take care of your monthly obligations.
Two Kinds of Credit Cards
There are two different kinds of credit cards you can acquire today: unsecured credit cards and secured credit cards. They differ vastly not only in their requirements but also in their benefits. To start the comparison and to show why it makes sense to carry an unsecured credit card at all times, we must discuss what secured carts are.
First off, an initial deposit is the only way to acquire secured cards. This initial deposit will be your initial credit limit and will vary depending on what the credit card company requires. Unsecured credit cards are usually the best option for those who have damaged their credit standing in the past and are working to rebuild their credit altogether. There are a few limitations to owning secured credit cards, and usually that limitation is in the amount of money you could have in it. Since its mostly reliant on how much money you’re going to put in initially, you’re pretty much limited to how much you can actually put down. For most people who are trying to acquire a secured card, it usually always is not a lot.
Unsecured credit cards are basically the most traditional sense of how a credit card functions today. Different credit card companies supply them, and the credit limit on these cards are not dependent on how much you can deposit initially. Getting approved for an unsecured credit card relies heavily on how great your credit standing is. The better your credit score is, the higher your credit worthiness will be.
Higher Credit Limits
This is one reason why it makes sense to carry an unsecured credit card. For the most part, unsecured credit cards usually carry a higher credit limit than secured cards do. So while secured cards are useful, they won’t give you the thousands that you might need for a particular purchase. Unsecured credit cards give you that benefit plus more.
With an unsecured credit card, you can get access to a lot of different types of rewards. There are various rewards programs out there depending on the industry, but some of the most common ones include travel rewards, store rewards, and gas rewards among so many others. Just to get the gist of it, if you use your unsecured credit card that’s part of a travel rewards program, you can accumulate points that can help you build points for flight mileage. The more you use your unsecured cards, the more points you could get. It’s quite simple. You can use the same travel rewards unsecured credit card to make travel purchases and earn some of that back.
This is the biggest reason why you should carry an unsecured credit card at all times. You never know when an opportunity to swipe and earn points can present itself.