Ever Heard the One about the Online Credit Card?
Contributed by Stephanie Litaker
They're not just for the mall anymore! Find out about online credit cards
Remember the good old days when there were only two different credit cards, and neither of them was an online credit card? Well, if you do remember them, forget them. These days of greater competition has led to a variety of credit cards, all of which offer their own perks and rewards. But a new type of credit card most people don't know about is an online credit card that is only used with specific merchants, and can only be used online.
In reality, this is basically a department store credit card that can only be used on the store's Web site. So obviously you won't take an online credit card to the local grocery store and buy your food for the week.
Benefits of an online credit card
If there aren't any benefits of using an online credit card, nobody would use one. Would they? Well, yes some people would. But there are benefits of an online credit card too. Unlike traditional credit cards that can be used anywhere that accepts credit cards, an online credit card has "restrictions" of sorts, that allow you to only shop at certain Web sites.
This may be considered a benefit because typically you can shop online and save money, since the competition and overhead expenses aren't as great as they are in the "real world." Also, having a limited amount of places to use your online credit card may also save you money from going on a wild shopping spree, or splurging while you're on vacation, or even going overboard at the make up counter at Macy's.
