Many consumers get lost in choosing the right credit card for their needs, not knowing for sure the difference between them. Before choosing the credit card that best suits your needs, you need to better understand how their various types work and what they are for.
Credit Card Templates
There are basically four types of cards, the main difference being their place of acceptance, as detailed below:
National / Local Credit Card
They are only accepted in Brazil and generally have lower annuities and credit limits. They mainly serve people with lower purchasing power; Most only offer credit, but in some cases some benefits are also offered.
International credit card
Accepted both in Brazil and abroad; In general, annuities are more expensive, because some benefits are offered. It is possible to withdraw abroad for a fee, but without interest.
Gold Credit Card
They are accepted in Brazil and abroad and are more differentiated than international cards, with higher annuities and limits. Many of the benefits are related to services offered abroad, which vary from institution to institution.
Like gold cards, they are accepted in Brazil and abroad, but are even more differentiated, being granted only to very special customers, who have great financial movement.
As the costs associated with each of these cards vary greatly, increasing the benefits offered increase, before choosing a card you must weigh well what you are looking for. If you have no intention of using these benefits, it is best to opt for the simpler modalities, otherwise you may end up throwing money away.
For foreign travelers, international cards are required. Now if you are one of those who like to receive differentiated service, gold cards and platinum cards may be a good option.
Issuing institutions, also known as administrators, are banks and service companies that issue and manage your credit card. The issuer is the one who actually finances your credit card, as well as sets the credit limits, and is responsible for the benefits of your card (consultations, service, invoicing, frequent flyer programs, etc.).
In addition to the broadcaster, there are flags that, as you may already know, are as described above. Within each banner, the issuer may partner with other companies, such as supermarkets, department stores, airlines, which offer advantages to the consumer. We will report below in more detail the five credit card modalities that exist for each of the four card types discussed above:
Institutional Credit Card
These are the cards issued by the bank in which you have an account and are usually offered at the opening of the checking account, and the limit depends on the balance you have and other contracted products. This group includes multiple cards, which as its name suggests, have multiple functions and debit and credit cards at the same time.
Corporate Credit Card
These are cards purchased by companies and provided to employees who incur expenses on behalf of the company. This type of credit card facilitates the cash management of companies by avoiding repayment and accountability procedures. This mode is only offered by some issuers.
Co-Branded Credit Card
Also known as a co-branded card, this credit card represents a sales and marketing partnership aimed at customer loyalty. This type of credit card carries the associated company logo and flag, bringing specific advantages to its members, such as miles and progressive discounts on purchases. We can cite an example of co-branded card: Airline Cards, auto industry, retail chains, etc.
Affinity Credit Card
It is the partnership between the credit card manager and non-profit organizations. This is a card that has an appeal that aims to identify the customer with the company, and he chooses to contribute financially, even indirectly, with these organizations. In this type of card the customer is informed how much and how he is contributing to the company. An example is the Socio-environmental Credit Cards (SOS Atlantic Forest Foundation, Amazonas Sustainable Foundation, etc.)
Prepaid Credit Card
In this type of credit card the limit is determined by the member himself, who credits a certain amount on the card. One of the advantages of these new cards is the ability to plan credit card spending. Thus, many cardholders are expected to use the new card at their children’s allowance. After all, parents can “carry” the card with a certain amount, above which their children will not be able to spend, avoiding the famous “overflow” limit. It is also helpful in educating children, getting them used to planning and spending only what they have available to them.
Now that you are more familiar with the major players in the credit card market, it is probably easier to choose the card of your choice. Do not choose your card based solely on the annual fee and interest charged.
Ask how customer service works, how many merchants accept the flag you have chosen, what benefits you are entitled to, talk to others who have a card from this issuer, this flag, ask if they are satisfied, or not.
Many people end up with credit cards from various issuers and brands, and forget that loyalty sometimes pays and has advantages, that is, using a single credit card can get you a higher credit limit, more benefits, etc. . Also, having multiple credit cards can turn into a nightmare if you don’t know how to use them consciously!