Specialised Credit Cards
There are numerous specialised credit cards available. A specialised credit card is a card aimed at a specific group of people, with particular advantages from which they would benefit. Most banks and building societies offer a number of specialised credit cards. The most common types are: student credit cards, which offer benefits including introductory gifts, or free travel insurance; and credit cards for people with a bad credit history, which give people regarded as 'high-risk' the opportunity to obtain credit when they would otherwise be unable. To qualify for specialised credit cards, you will need to fulfil the target customer criteria.
Student credit cards are useful for young people who do not have a steady income and would therefore be unable to obtain conventional credit. Although the interest rate tends to be higher for student credit cards, they offer the same flexibility and benefits associated with standard cards, such as an interest-free purchase period. In addition, these cards help young adults to build up a good credit history. Bad credit history cards enable customers to obtain credit but also give them the chance to prove that they are now able to efficiently manage their finances. Customers with a poor credit history who use the credit card appropriately and never fail to make repayments are able to begin to improve their credit rating.
It will not always be advantageous to apply for a credit card which is tailored to a particular consumer group, even if you fit the profile of the target customer. Although the card may offer you certain benefits, you might find that these are counteracted by drawbacks in other areas. For example, you may receive a student discount on purchases at particular shops, but incur higher interest charges on your outstanding balance than you would with a standard card. Research the options available to you and do not assume that a credit card which claims to offer you a good deal will necessarily suit your needs. However, specialised credit cards tend to offer credit to those who would not normally be offered it and you may find that a specialised credit card is your only option. In this case, you should weigh up the pros and cons of having credit card, and consider alternatives, such as Debit Cards or Prepaid Cards, which may be better able to meet your financial needs.
