Choosing a credit card: credit card types

When it comes to credit cards, there are quite a few different types to choose from. Each type of card comes with its own set of features and benefits, so it's important to think about what's most important to you before selecting one.

These are the most basic credit cards. They have a credit limit, which is how much you can spend. You have to pay back what you spend, plus interest, which is a fee for using the credit. You can pay the full amount or a part of it every month. Some standard credit cards have annual fees, which are charges you pay every year to use the card.

These are credit cards that give you some benefits for using them, such as points, cash back, miles, or discounts. You can use the benefits for things like gift cards, merchandise, or travel. Rewards credit cards may have higher interest rates or annual fees than standard credit cards, and they may have rules or limits for the benefits. They are a great choice for people who are disciplined about paying off their balances each month.

These are credit cards that need you to deposit some money as a guarantee that you will pay back what you spend. The deposit is usually the same as your credit limit. You can get the deposit back when you stop using the card or switch to a regular credit card. Secured credit cards are for people who have no credit or bad credit, and want to improve their credit score.

These are credit cards for college or university students. They usually have lower credit limits and interest rates than regular credit cards. Student credit cards can help students build and keep a good credit history, which can help them after graduation. But students also have to be careful not to spend too much or miss payments, as this can hurt their credit score and cause debt problems.

These are credit cards for business owners or employees who need to pay for business-related expenses, such as travel, supplies, or equipment. They usually have higher credit limits and interest rates than personal credit cards, and they may offer some benefits, such as rewards, cash flow, or tax deductions. Business credit cards can help separate personal and business finances, and track and manage spending.

These are credit cards that are issued by specific retailers, such as department stores, gas stations, or online shops and they can only be used at those retailers. They usually have lower credit limits and higher interest rates than other credit cards, but they typically offer some benefits, such as discounts, coupons, or loyalty points.

As you can see, there are many different types of credit cards to choose from. Consider your spending habits and your financial goals to help you choose the card that's right for you.