These cards are also called ‘Plain-Vanilla’ cards because they do not offer frills or rewards. They are relatively easy to understand. It can be defined as a card without any special feature, perks or annual fee. They are basically the same from one issuer to the next. Interest rate depends on the cardholder’s credit score and if the balance is being paid in full and on time each month, the card issuer does not charge any interest. The card’s credit limit also depends on the cardholder’s credit worthiness. These cards are best for customers who do not want to interpret complicated fine print and like better not to bother with credit card rewards programs or who do not spend enough to earn meaningful rewards. New credit card users will find these cards as the best option because they need to focus on learning to use a card responsibly.
There are several reasons why you might forgo the rewards card and get a plain vanilla credit card. For one thing, these cards come with so many additional features that can make them a great value. This card does not have any annual fee, late fee, and penalty fee and offers 0% interest on purchases for the first 21 months. This makes it a good choice if you need a long time to pay off your balances or tend to make the occasional late payments. Generally these cards have better interest rates than rewards cards. The interest rate assigned to you will depend on your credit worthiness. Having an excellent credit score simply means that you will get better interest rate. Some of plain vanilla cards give you a chance to get your FICO credit score (free).
More and more people are choosing plain vanilla cards over rewards cards and they have a plenty of reasons.