Credit Cards 101: What Are Different Types Of Credit Cards?

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Credit cards make life more convenient because with just a swipe, we can already secure the things we want to have. However, new applicants need not overlook that each type of card functions differently. To effectively use it, one must know how his or her chosen card works.

There are times when a person can get an approval for low interest credit cards but cannot qualify for a business credit card. By the help of bank experts, you can identify which one will suit you best.
Here are the different types of credit cards to choose from

Standard Credit Cards

This type of credit card is coined as "plain vanilla" because aside from being readily available, these cards offer no points or miles rewards. However, one can have a standard credit card without having to make a security deposit. These cards offer varying APRs, examples of which are the balance transfer and low interest credit cards.

Balance transfer credit cards are those that typically offer a low promotional rate allowing its bearers to manage a balance with high interest rates. As the terms vary on every bank, every applicant should be wise enough to be familiar with the conditions that come with the application.

Low Interest cards give its bearers two advantages: either they get a low starting APR that will eventually increase over a period of time or they get an APR with a low fixed APR. These are beneficial whenever consumers purchase bulk orders as it takes an ample amount of time to complete the payment as low interest credit cards have very little to no interest.

Rewards Credit Cards

This type of credit card provides card holders with incentives for being making constant transactions using the card. Bearers earn points and can take advantage of certain rewards that can be worthwhile. Some of these include Cash Back and General Rewards.

The Cash back reward is guaranteed to those credit card holders who pay their bills without fail. The more frequent you use the cards the more likely you are to receive cash back points.

The general rewards type is quite similar to cash back programs because they depend on the frequency of its usage. Rewards will vary from one card provider y receive appliances, gift cards, and even precious items such as jewelry.

Accommodation and Travel cards offer discounts on hotel bookings and airfare makes jetsetters earn more savings. With these types of cards, users can even make necessary upgrades on certain hotels.

Retail rewards are those that are partnered with major retailers such as Disney and Amazon. Depending on which retailer card you choose, you are able to get rewards under a point system their company implements.

Gas Cards can either cater any gas company or be exclusive only to one gasoline company. Bearers are able to take advantage of this card by getting rebates. These types of cards benefit those in the transportation business as their vehicles need to be filled every once in a while.

Air Travel

Frequent fliers can take advantage of these cards as they can earn mileage credits for every transaction they make. Cards that can be used on any carrier enable consumers to earn points without being restricted to a single airline. On the other hand, those that are tied up to a specific carrier, allowing a loyal passenger to get incentives like getting baggage fees free-of-charge.

Credit Class

Beginners who have no credit or people who have poor credit score due to their inability to secure a stable job can still apply for credit cards. These types of cards can be a wise option for those who are currently struggling with their finances and want to fix their credit status.

Secured types of credit cards require security deposits depending on the predetermined amount calculated by the representative. It can be in the form of a land title, car, or jewelry.

Specialty Cards

These cards are designed for the status of the user. For professionals, banks offer the business credit type for executives who want to gain bonuses related to their line of work. They can enjoy business rewards and get a higher credit line.


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