Question

6. Special types of bank credit cards

Many credit cards offer features that are tailored to users’ preferences and lifestyles. In the following situations, identify which credit card is a good choice to achieve the user’s goal.

Special Bank Credit Cards for Different Lifestyles and Preferences

Carlos has a history of charging a lot on his credit card and doesn’t carry a high monthly balance. Carlos loves cars and plans to trade in his cars every two years, if not more often, for new ones.

Which credit card is the best choice?

A reward card with an automobile rebate program

A secured card

Any affinity card

Why is that card the best choice?

Carlos’s low monthly balances will protect his collateral.

The high-charge volume will provide funding for Carlos’s favorite political organization.

The high-charge volume will provide points to use toward supporting Carlos’s relatively expensive plans.

It is January and Felix just realized that he forgot to make his annual contribution to his favorite charity. He wants to make sure he doesn’t forget again to make a contribution. Felix has good credit and should easily qualify for a new credit card.

Which credit card is the best choice?

A secured card

The affinity card sponsored by the charity

Any reward card

Why is that card the best choice?

Felix can donate the reward card points to his favorite charity

He can’t default on the card

The charity will receive a portion of the card’s profits

Larry has $1,000 in cash. Larry also has a very bad credit history, but wants a credit card.

Which credit card is the best choice?

The affinity card sponsored by the alumni association

A reward card with a frequent flyer program

A secured card

Why is that card the best choice?

It’s the only card he will probably qualify for.

He can offer the $1,000 as collateral.

Both of these.

Answer 1

Credit Cards - People preference towards credit cards will vary depending on their lifestyle. Different credit cards which has their own significance, like

• Affinity credit card : Affinity credit cards are mostly preferred in retail shopping, airlines, professionals, sports team, alumni associations, e.t.c.
• Secured Credit card: Secured cards are applied by mostly people with no credit history or any bad history. This cards require collateral security as deposit.
• Reward Cards with rebate programme: Reward cards are good for individuals who trades or with lots of nterchanging money. Rewards are added as points for specific/each transaction based on choice, these points are used while purchase for things as per rebate program.

Carlos: Reward card with automobile rebate programme is the best Credit cad for Carlos.

Among Secured credit card and affinity card from any organization, Reward Card is best choice for Carlos. As Carlos has good credit history and low montly balances it reflects his good creditworthiness. Carloes love towards cars makes him to often trade cards, by using Reward card with automobile rebate programme helps in savings with good rewards while trading cars.

Flexi: Affinity credit card sponsered by charity is best choice for Flexi.

As flexi makes contribution to his favorite charity anually, affinity credit cards are offered to the members of organisations. By this charitable organisations gets funds to their accounts from its members automatically on the specifed due dates. Through this flexi can contribute to its charity on or before the due dates without any default. Secured credit cards and rewards cards are having less benefits.

Larry: Secured credit card is preferably good choice for Larry

As mentioned earlier, Secured credit cards are offered with collateral security as Larry has $1000 to offer as collateral. With very bad credit history no others credit cards are issued to Larry and Secured credit cards are best choice for individuals with bad or nil credit history.