by Joseph Kenny | 10/30/08

Credit cards come in many different types. Although the essential principle behind credit cards stays the same from one form of plastic to the next, the terms and conditions that apply to them vary greatly. For instance, if you're going to school, then you can obtain a student credit card which enables you to make purchases and build credit even when you don't have a financial history backing you up. If you have bad credit, you can pursue a secured credit card, which is based on money you put up front to cover any debt you may potentially end up owing on it. For those who like having bonuses returned to them, there are cash back cards and frequent flier cards as well.

Truth be told, the number of cards is seemingly endless. However, one of the card types that people most often are confronted with is the retail credit card. Because of the frequency at which the average consumer shops at retail locations, the companies that sell to the individual often promote a line of credit cards that are co-branded with their business. Typically speaking, purchases at any retailer will often reward you with points, but purchasing at the retailer that sponsors the card gives you double or even triple points that can be redeemed towards obtaining goods or services from that specific retailer.

Retail credit cards are a great way to reward yourself if you a a loyal shopper at the company that provides them. If you shop at an electronic store such as Best Buy, you may find yourself earning something like 4% cash back on every purchase that you make. This can quickly add up to provide you a great opportunity obtain what you want as literal reward. However, as with any card, you should always strive to moderate your spending and maintain a zero balance by making full monthly payments on time.

Another thing retailers like to do is offer discounts and special opportunities for financing to individuals who possess their respective credit card. This can be a great deal for people looking to maximize the quality of shopping that they do at their favorite stores.

Retail rewards credit cards are very tricky, however. They can compel you to purchase more, but in doing so you run the risk of creating a large balance, overcharging, missing payments, or making minimal payments every month. Often enough, the cards that come from retailers are combined with very high interest rates that can quickly punish you if you don't pay off your balances on a monthly basis.

Truth be told, the best thing you can do to save your money is to purchase using cash or a debit card. By controlling how much you spend and paying in full, you do a whole lot more than whatever deal of the week retailers will present you when it comes to using their cards of choice. Of course, if you must use a card to charge a purchase because you can't afford it otherwise, then you should ideally use a general purpose credit card because it'll likely have a lower interest rate. This saves you money over time by limiting the amount you spend altogether.

If you can afford the purchase and the opportunities that retailers give you are very advantageous, then you should definitely consider it. Just keep in mind that with every credit card comes the responsibility of making monthly payments for what you charge. You want to keep your balance clear and pay everything you owe on time every month.