Defining banking cards: are they all created equal?
People have different views on opening credit cards to establish credit and more and more consumers are choosing banks that offer  the best identity theft protection.  Some think it is a good way to start out with credit, while others think it is a bad habit using money you don't have.  With the latter being said, it is important to only open a credit card if you have the funds to actively pay your bill.  The point of a credit card is not so you can spend money when you don't have it, but to use them and pay them on time to build a financial relationship with creditors and lenders.  It exemplifies your ability to be responsible with your finances.  Now that we have established why not to get a credit card, which one should you choose if you do get one?


Which Card Should You Get?

We are constantly approached via mail, email, and telephone by credit card companies offering us many different cards with many different advantages and disadvantages.  In addition, there are other types of cards offered that are not to be confused with cards that offer credit.  Some types of these are banking cards and travel/leisure cards.  Your ATM or Debit card is linked through your bank to your personal banking accounts.  These cards are issued by major credit card companies like MasterCard and Visa.  When you use these cards, the funds will come directly from your checking or savings account and in some cases, there aren't any interest charges or fees.  It is no surprise that these cards have increased in usage and popularity.  However, it is up to the bank and its bank card policy to decide whether or not to put interest, fees, or other terms in connection with the issued card.  These terms can be exclusive and tailored for each customer, making it important to check around with several banks before you make that decision.

In addition to choosing whether to get a bank card or not, there are different types of bank cards that customers should know about.  There are affinity cards, which are offered with famous company logos attached and will usually offer some financial incentive to gain consumer loyalty.   They are usually attached to some kind of charity, which might make them seem attractive, but do not be fooled by their famous branding (such as Disney, Hello Kitty, or even designing your own card).  Most profit is taken by the banks offering these cards, with very little going to a charity and their benefit not outweighing their terms and conditions.  You would fare better to just simply donate to a charity without the conditional terms.

Secured and Unsecured Credit Cards
Secure cards are another option.  With this type of card, you would deposit funds into an account in order to secure the credit you will use with the card.  These are very ideal for people with credit issues, as it is a way to use credit while still have a guaranteed source of funds to cover it.  However, a secure credit card could be a good idea for anyone, as it is used and protected just like an unsecured credit card.  Before you proceed in getting a secure credit card, check the interest rates, annual fees, as well as benefits from becoming a responsible and loyal user of the card.  You can get all of your inquiries answered by simply calling and talking with any bank who offers secured credit cards.

In addition to the above, unsecured cards are also offered and are the most popular.  They are what one would consider a typical credit card to be.  There are interest rates, minimum balances, credit limits, and other terms and conditions as well.  If you do not pay your balances, an unsecured credit card company would be forced to sue you and force you to file bankruptcy in order to collect the funds.  There are also other types of cards that are specific to areas of interest, like travel and leisure with American Express cards.  Their interest rates do not vary based on the consumer's credit, but are a set rate for every member.  Another specific card is a house credit card, which are the ones that you would get from retailers, like a department store card.  These are also fixed with their interest rates and do not vary.

The difference between ATM and Debit Cards
The card options still expand further, through your personal banking establishment.  There are ATM cards and Debit cards.  ATM cards are used to take out personal funds from your bank account.  You will use a pin number at an ATM cash machine and does not have any type of credit association with major credit companies.  Like an ATM card, a debit card also takes funds from your bank account with its usage and you are also issued a PIN to use it as a bank card or ATM card.  Unlike ATM cards, debit cards are associated with credit companies, like VISA of MasterCard and are usually accepted everywhere a 'regular' credit card is used.  This is ideal, as you can use a debit card like a credit card, but unlike a 'regular' credit card the funds used are immediately deducted from your bank account.  You will never have to deal with payments or a balance to payoff.  Be careful where you use a debit card, as it might not offer as much protection as a 'regular' credit card.

Remember, do you research and learn about the benefits and costs of having any other above cards.  They can help build or establish credit, but can also hurt your credit should you choose the wrong one. All cards are not created equal, so take note of this website:  bankrate.com/cic.  This can be a great resource for defining and learning about all of the different secure and unsecured credit cards out there.  Each card has its advantages and disadvantages you must consider and this site can help you find the right card for your specific needs.