Finance companies, banks, and non-bank providers offer secured and unsecured credit cards. There are prepaid, department store, no annual fee, and other products.
Products for Creditworthy Customers
Clients with good credit can choose from different products, including low-interest loans and credit cards. The choice of card depends on whether you pay the HBC credit card balance in full or make minimum payments. A reward card is one option for customers with excellent credit in that they earn bonus points that can be redeemed for gift cards and certificates, airfare, hotel accommodation, and more. A cashback card is another option that allows customers to save money on purchases. Credit card companies offer rewards and incentives to encourage use and attract more customers. Airmiles and rewards cards are good choices for borrowers who pay their balance in full. Issuers offer benefits such as complimentary bonus points that can be redeemed for CDs, holidays, and days out. There are other benefits to using rewards cards, including travel accident and lost luggage reimbursement insurance. Other benefits include no pre-set spending limits and stolen and lost card reporting.
These cards are usually offered to existing customers and borrowers with a good credit rating.
Prepaid, Department Store, and Secured Cards
Customers with poor credit have several options depending on their credit score and income. Given that they are considered high risk, borrowers with bad credit often turn to non-bank entities. While there are some options for such customers, the interest rate can be as high as 40 percent. One alternative is to apply for a department store credit card that allows borrowers to save money on big-ticket purchases. Issuers offer plenty of benefits such as discounts on jewelry, cosmetics, clothing, appliances, gifts, and holiday purchases. It is important to monitor your spending in order to build or rebuild your credit history. Whether using a standard or secured credit card, payments are usually reported to the credit bureaus. A student credit card is another option for students who are enrolled in college or university. Students enjoy benefits such as attractive interest rates, no annual fee, discounts, and others.