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Written by Jacky Chou

Different Types of Credit Cards

Credit cards have been around for decades, but they are still a viable option. There are different types of credit cards that vary in features and benefits based on the issuing bank; choosing which card is right for you can be difficult.

Credit cards are a type of payment that is used to purchase items. There are 4 types of credit cards: Visa, MasterCard, American Express, and Discover. Read more in detail here: what are the 4 types of credit cards?.

These are just a few of the benefits of owning a credit card. Plus, taking credit cards rather than cash is safer while buying – particularly when traveling overseas. You are not required to use a currency exchange service. 

You may also schedule your purchases and earn no-interest delayed payments. And, if you’re disciplined, you’ll be able to keep track of your spending since your monthly statement will show you how much money you’ve spent. 

So now you’re thinking of applying for a credit card. The next step is to learn about the many sorts of credit cards and choose which one best suits your requirements and goals. As previously said, properly managing a credit card may result in you saving money and receiving additional rewards. 


Before you obtain one, keep in mind that not all credit cards are made equal, and some may be more beneficial to you than others. 

Credit Cards with Cash Back. 

You may use your points to get award travel, online shopping credits, or gift cards with this sort of card. Cash rewards credit cards are more likely to pay a flat cashback every time you make a transaction. Some cards, for example, reward you with 2% cash back for every dollar you spend. 

When you purchase anything, you earn one percent, and when you pay, you earn another. Other cards provide benefits of 5% cash back on purchases of $1,500 USD or more. Other cards provide 2% cash back on grocery purchases and 4% cash back on restaurant and other entertainment purchases. 

It all depends on the credit card, so read the tiny print carefully. Some cash-back credit cards also allow you to deposit money into your bank account. 

Credit Cards with Travel Rewards. 

This is arguably the most common sort of credit card. There are several sub-types of travel rewards credit cards. 

The Airline Hotel Flexible Rewards Credit Cards are one of the most frequent sub-types. This has the most potential in terms of profits. This sort of card may enable you to earn points for expenditures such as groceries and petrol. 

There are branded airline travel rewards cards that provide perks such as priority boarding and free checked baggage for loyalty programs. 

This is especially useful if you travel often. 

Some of these cards give reward points for purchases made at various airlines and hotels. Other cards provide excellent perks such as access to airport lounges, trip upgrades, and travel credits. 

Credit Cards for Businesses. 

This sort of credit card, as the name implies, allows you to maximize the usage of your company costs. Some of these cards reward you with additional points for things like office supplies, petrol, and even vacation. 

Others provide perks for online purchases, such as social media advertising. There are different sorts of business credit cards in this category, just as there are travel rewards credit cards. 

Examine the cards that assist you in establishing a company credit score. It’s also worth looking at ones with no yearly costs.

Credit Cards for Students 

Although this sort of credit card has modest scale limitations, it enables students to get more rewards than non-students. If a student maintains a specific grade point average, certain credit cards give a statement credit. 

After college, if you’re a good payer, you may be eligible for awards credit. Some cards may also come with greater credit limits, no annual fees, and the ability to earn points on every transaction. 

That’s a weight off your shoulders, and you won’t have to worry about the extra charges. 

Credit Cards with Balance Transfers 

This type of credit card provides a convenient way for the user to pay off their debt. Some of these cards may have longer introductory zero percent offers. 

It might be a fantastic option for you, particularly if you have strong credit, since you can earn points on your new card purchases in addition to the zero percent offer. Some cards, on the other hand, are dedicated only to balance transfers. 

It’s still a good idea, particularly since most of them have a zero percent interest rate. This card is ideal for people who need to regain control of their financial flow. 

Your credit score will improve as long as you manage your credit cards responsibly, regardless of the sort of credit card you get. In the long term, you could be eligible for cards with additional perks and benefits, as well as more reward points.

There are many different types of credit cards in the United States. These include, but are not limited to: Visa, MasterCard, American Express and Discover. Reference: types of credit cards in usa.

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