If you’re looking to get a new credit card, there are endless options out there. But, picking a card that suits your spending habits, preferences, and budget is not the easiest thing to do. That’s why we’ve compiled a list of the most popular types of credit cards in the market, so you can pick one that’s a good fit for you.
General Rewards Card
These cards help you earn rewards when you charge eligible expenses to the credit card. The rewards you earn will likely be in the form of points, which you will be able to redeem for things like gift cards or merchandise.
General Travel Credit Card
If you aren’t insistent on only traveling by a particular airline or staying at a certain hotel, general travel credit cards can be a great option. Many of these credit cards let you redeem the rewards you earn for travel at an excellent rate. While each travel credit card may work in a different way, these cards typically help you redeem your points for credits that you can use against travel purchases. Two popular types of travel credit cards are airline credit cards and hotel credit cards.
Cashback Credit Cards
These credit cards work in a pretty straightforward manner. The simplest cash back credit cards offer you a flat percentage of cashback on eligible purchases. Cards with more complicated rewards structure coils offer you different levels of cashback for different spending categories. Regardless, as long as you charge eligible expenses to your card, you will earn your cashback.
Secured Credit Cards
These credit cards are best suited to people who don’t have a credit score or a credit rating that’s taken a beating. Secured credit cards help you build your credit score, but you will need to put down a certain security deposit (as decided by the lender). Your credit limit is usually restricted to how much security deposit you put down. This helps the company get their money back in case you default on your payments.
Balance Transfer Credit Cards
These cards allow you to transfer your existing credit card debts to the balance transfer card, and repay it during the interest-free period (usually offered for up to a total of 21 months from the time of receiving your credit card).