What Are The Nine Different Types of Credit Cards?

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As with most things in life, there is no such a thing as a one size fits all credit card. Credit cards were designed with many different individuals in mind. Here are nine different types of credit cards, some of which will fit your situation better than others do.

Unsecured Credit Cards

These are the most typical kinds of credit cards today. They are generally intended for individuals who have a range of from fair to excellent credit

Secured Credit Cards

These cards usually make you pay a security deposit in cash. It usually equates to all or half of the credit card limit. These cards are intended for those individuals who either lack credit or need to work on rebuilding their credit

Balance Transfer Credit Cards

Such cards allow you to transfer credit card balances from other credit cards to the new one in an effort to save on interest costs. Usually such new cards come with an introductory rate of 0 percent APR for a certain amount of time

Travel Rewards Credit Cards

This type of card gives you either points or miles which you can later redeem for purchases related to travel like hotels and airfares

Cash Back Rewards Credit Cards

Such credit cards give you a pre-set percentage in cash back on all eligible purchases

Gas Rewards Credit Cards

This card type rewards you with cash back when you use it at gas station pumps

Zero Percent Intro APR Credit Card

Such cards permit you an extended interest free grace period for upfront balance transfers and purchases

Student Credit Cards

Intended to be starter credit cards that can help you to establish or rebuild your credit, they usually start with smaller credit lines

Retail Cards

A card that is valid at one set retailer, it provides you with point rewards for goods or services that you purchase at that retailer

With all of these credit cards, it is critical that you discipline yourself and remember that credit is not a cash substitute. Anything that you charge you need to be able to repay. Otherwise you will fall into a seemingly never ending debt trap.

Remember that some debts are better than others too. Debts that you have the money already in the bank to pay off are good ones that help you to build your credit by paying them on time. Debts for which you can not afford the purchase you are making are bad ones.