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Navy Federal Credit Union logo.
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NARRATOR: Navy Federal Credit Union. Credit cards. Types of credit cards.
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Graphic image of several credit cards in different colors.
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When it comes to credit cards, you have lots of options. Here's a quick look at the types of cards that are available. If you're going to carry a balance, you'll want one with a low interest rate. But if you'll pay off your balance each month, the rate will be less important.
Let's talk about some other types of credit cards.
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Graphic image of a dress on a hanger and a gasoline pump.
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Many retailers, like department stores and gas stations, offer their own credit cards. They aren't usually issued by a financial institution. And they may be easier to qualify.
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A credit score gauge divided by scores of 300, 500, 600, 660, 780. The gauge's dial points to 660.
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Just be aware, that although they can help you build credit, they can have high interest rates.
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Graphic image of a rewards credit card. A pile of money shows up to the left of it, followed by a rolling number dial that stops at 400 on the right.
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Rewards cards will give you cash back or points based on your purchases. You can redeem your points for cash, travel, gift cards or merchandise.
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Graphic image of a premium credit card. Bubbles pop up from it with images of an airplane, tickets, and a hotel.
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If you're willing to pay an annual fee, premium cards offer additional perks, like priority airline boarding, early access to concert tickets and hotel upgrades. But you'll pay at least $50 or more a year.
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The credit score gauge dial falls from nearly 780 to below 500.
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What if you don't have much credit or you're rebuilding your credit? Consider a secured credit card.
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Graphic image of a secured credit card with a security lock symbol.
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You deposit money into an account as collateral, like a security deposit. For example, if you put $250 into a deposit account, you can make $250 in purchases. Some secured cards even earn rewards.
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A gift box image appears above the secured credit card.
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Whatever your lifestyle, there's a credit card for you.
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Graphic image of three credit cards with a thumbs up symbol above them.
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Our members are the mission. For more information, visit makingcents.navyfederal.org.
This is not a commitment to lend, and conditional/subject to the verification and accuracy of the information submitted to Navy Federal. This video is intended to provide general information and shouldn't be considered legal, tax or financial advice. It's always a good idea to consult a tax or financial advisor for specific information on how certain laws apply to your situation and about your individual financial situation. NFCU copyright 2020. Federally insured by NCUA.