Credit Card Types

January 14, 2021

Reward Credit Cards
Travel Rewards Credit Card

Travel Rewards credit cards are the most common kind (airline, hotel, flexible). You may want to start out with one that has the highest earning potential for how much you currently spend.

Airline and Hotel Credit Card

Most airlines and hotels offer their own reward programs. Branded cards that usually have an annual fee attached to them offer additional loyalty benefits. Airline mile cards usually offer free checked bags and priority boarding. It is not uncommon for hotels to offer a free night for their rewards or free upgrades.

Cashback Rewards Credit Card

Some cashback reward credit cards may let you redeem points on gift cards, amazon credits, or even travel. Offer the ability to earn flat cashback where you can earn the same amount on each purchase. On the other hand, you can earn tiered rewards where you earn a certain percentage on the first purchase and a lower percentage after; or you can earn different percentages on various categories of purchase.

Balance Transfer Credit Card

Balance Transfer credit cards allow you to pay of a credit card balance interest free. Some travel and cash reward cards offer )% introductory offers; good if you have excellent credit score (740 or higher). Citi Simplicity Card and Chase Slate are the cards to look at as they have high interest rates and can help you get back on your feet.

Business Credit Card

Business Credit Cards help you maximizes the purchases you would make in your business. Some cards offer bonus points and online-related purchases, other cards prioritize physical purchases. No annual fee cards are available in order to build your credit score. It is possible to redeem your points on travel, cash, or both.

Student Credit Card

A student credit card spending limits are kept small. Some credit cards offer a statement of credit by maintaining a 3.0 grade point average.

Secured Credit Card

With a secured card, your credit limit is equal to your deposit amount (your deposit may be as high as $500). Once your credit score increases, you will be able to apply for unsecured credit cards. Most credit cards are insecure which means they do not need a security deposit and are more likely to offer purchase rewards. If your credit score is 620 or below, a secured card would be a better option.

Low-Interest Credit Card

With a low-interest credit card, if you cannot pay your balance in full each month, it will reduce the amount of interest you have to pay. Consider the low interest rate on purchases, cash advances and balance transfers and low annual fees before putting a low-interest rate credit card in your wallet.