13 Different Types of Credit Cards

Different Types of Credit Cards

There are many different types of credit cards with different benefits. Each individual card is unique in terms of their specific benefits, but all cards fall into a few general categories Which card is best for you depends on your goals.  Let’s take a look at the types of credit cards out there and see if any would work for you.

Standard Cards

Standard credit cards, often called vanilla or plain vanilla cards, are the most basic of the types of credit cards, as they do not offer rewards and are pretty straightforward in their terms.

Rewards credit cards are very similar to cash back credit cards (and even include cash back cards), but in this case your spending is earning points or miles that can be redeemed for travel and other things.

Personal Cards

A personal credit card is just what is sounds like: for personal use. Lenders look at your personal credit score in determining qualification, and these cards are generally used for personal expenses.

Business Cards

Business cards are generally used by small business owners and their employees for business expenses. Business cards are reported to a business credit reporting bureau, resulting in a business credit score.

Unsecured Cards

Unsecured cards are what most people think of when they think of credit cards. These cards allow you to spend up to a set limit without putting up any form of collateral. You can borrow and spend up to your limit with periodic repayment.

Secured Cards

Secured credit cards require collateral in the form of a cash deposit when you open the account. This deposit typically becomes your credit limit, and reduces the risk to the company issuing the card. If you default on your payment, the card issuer can take the funds from the cash deposit.

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