Definition:

A basic credit card is a type of credit card that offers a low or no annual fee, basic rewards or cash back, and limited benefits.

Key Features:

• Low or No Annual Fee: Basic credit cards typically have a low or no annual fee, making them affordable for those with lower credit scores or limited budgets.
• Basic Rewards or Cash Back: Some basic cards offer rewards or cash back on certain purchases, but the rewards programs are usually less generous than those on higher-end cards.
• Limited Benefits: Basic credit cards typically have fewer benefits than premium cards, such as limited purchase protection, no rewards on balance transfers, or no concierge services.
• Minimum Requirements: Basic credit cards often have lower credit score requirements than premium cards, making them more accessible to those with lower credit scores.
• Rewards or Cash Back: Some basic cards offer rewards or cash back on certain purchases, although the rewards programs are usually less generous than those on higher-end cards.
• Purchase Security: Basic credit cards typically offer purchase protection against fraud, but the coverage may be limited.
• Cash Advance Fees: Basic credit cards may have cash advance fees, which apply to advances made with a credit card.
• Interest Rates: Basic credit cards usually have higher interest rates than premium cards.

Examples of Basic Credit Cards:

• Visa Platinum Select
• Mastercard Everyday
• Discover it® Cash Back
• American Express Serve

Advantages:

• Affordability
• Accessibility
• Rewards or Cash Back
• Purchase Protection

Disadvantages:

• Limited Benefits
• Higher Interest Rates
• Cash Advance Fees

Target Audience:

• Consumers with low or no credit score
• Students
• Individuals on a tight budget
• Those who value affordability over rewards and benefits

Overall:

Basic credit cards offer a low-cost way to build credit and access basic credit card benefits. However, they typically have higher interest rates and limited benefits compared to premium cards.