Let’s review the most popular types of credit cards, how they work and who they are best suited for. Here’s what you need to know about the different types of credit scores. Not all credit scores are created equally. So, if you’re looking to earn some cash back on certain types of purchases or dream about accumulating miles or points to redeem for free travel, the choice is yours to make.Īs long as you behave responsibly by not missing payments or spending more than you can repay in a timely manner, your options can become limitless. Some credit cards charge an annual fee in exchange for exclusive benefits and many other cards do not. Once your credit score moves into the “good” range (typically a FICO Score above 670), you’ll find that you can qualify for a wider range of credit cards that offer rewards programs and a variety of perks and benefits, along with larger credit limits from which to borrow and repay.ĭepending on your creditworthiness, spending patterns and lifestyle choices, there’s most likely a credit card that meets your needs. You’ll be granted a low initial credit limit until you can prove that you can handle credit responsibly by paying your bills on time every month and not maxing out the card. If you’re just starting out on your credit journey, you’ll most likely have to start with either a secured card, a student card or a retail card, as those are the easiest to qualify for. While there are many types of credit cards catering to almost every type of card-seeker, the most popular ones fall into seven buckets: cash-back, travel, student, balance transfer, business, retail and credit-building or secured cards. How many types of credit cards are there? We’ll cover several of the most popular types of credit cards on the market, how they work and what type of person will most likely benefit from each. However, once you narrow down exactly what type of credit card you can qualify for, plus how you plan to use it, selecting a credit card that fits your spending patterns and lifestyle can be more clear. There are so many different types of credit cards that it can be difficult to navigate which one will serve you best. Today, the world of credit cards has grown so exponentially that there seems to be a credit card that caters to almost everybody - from NASCAR fans to Harley-Davidson bikers to Trekkies. A little over 70 years ago there was just one credit card - the Diners Club card.
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