8 different types of credit cards
Editor's Note
Credit cards come in a variety of flavors and cater to a diverse audience. For example, if you prefer a credit card that earns travel or hotel rewards, you can pick from cobranded cards from a specific airline or hotel chain or a general travel card that will earn you flexible reward points.
If you prefer earning cash back or you want a credit card that's tailored toward a specific store, they also have those. We'll go over eight different types of credit cards, showing you how they work and what they have to offer.
Related: How to choose the best credit card for you
Rewards credit cards
Rewards credit cards offer some form of cash back or points on all purchases, and many offer bonus points on specific categories such as travel, dining, groceries and gas.
Rewards credit cards give cardholders numerous ways to redeem points, including statement credits, gift cards, travel and transfers to airline and hotel partners.
Some examples of reward cards include:
The information for the Bilt Mastercard has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
Related: Best rewards credit cards
Cash-back credit cards
Cash-back credit cards offer a percentage of money back on purchases made with the card. Some cash-back cards offer an elevated earning rate for specific bonus categories, while others offer a flat rate on all card purchases.
Bonus cash-back cards can target fixed categories that include travel, drugstores and gas, while some cash-back credit cards entice cardholders with rotating bonus categories that change quarterly.
You can redeem the cash back you earn in a few ways, such as statement credits, direct deposit into your bank account and gift cards. Some cash-back cards have relatively low annual fees, while others have no annual fees. Depending on your spending habits, it may be better to have a flat-rate cash-back card or one that offers bonus cash back in specific categories.
Examples of cash-back credit cards include:
- Chase Freedom Unlimited® (see rates and fees)
- Citi Double Cash® Card (see rates and fees)
- Blue Cash Preferred® Card from American Express (cash back is received in the form of Reward Dollars that can be redeemed as a statement credit and at Amazon.com checkout)
Related: Top cash-back credit cards
Travel credit cards
Travel credit cards are designed to make travel more affordable by awarding you points that you can redeem for travel-related expenses. Most travel credit cards will award you with bonus points on travel-related purchases.
Some travel cards offer transferable points, such as Chase's Ultimate Rewards points or American Express Membership Rewards points. These points can be transferred to other participating rewards programs.
Most travel credit cards have annual fees ranging from $95 to $895. Higher annual fees usually translate to more lucrative rewards and other perks, such as TSA PreCheck or Global Entry benefits, airport lounge access, complimentary travel-related insurance coverage and elite status for a specific hotel chain.
Some of the top travel cards include:
- Chase Sapphire Preferred® Card ($95 annual fee; see rates and fees)
- The Platinum Card® from American Express ($895 annual fee; see rates and fees)
- Capital One Venture Rewards Credit Card ($95 annual fee)
Related: Best travel cards
Business credit cards
A business credit card can help business owners separate their business and personal expenses. Business credit cards offer varying rewards, such as points, airline miles or cash back, and can often be divided into categories such as travel or cash-back credit cards.
If you own a business and are eligible to apply for a business credit card, you can earn rewards alongside what you are earning from your personal credit cards. And many business credit cards offer bonus rewards in business-related spending categories, such as advertising, internet services and office supplies.
Of course, the main reason to have a business credit card is to keep track of your business expenses and avoid mixing business and personal transactions.
Some top business cards include:
- Ink Business Preferred® Credit Card (see rates and fees)
- Capital One Venture X Business
- Delta SkyMiles® Reserve Business American Express Card
Related: Best business credit cards
Student credit cards
Student credit cards are beginner credit cards made for young people who have yet to establish their credit. As such, student credit cards are fairly easy to obtain; however, don't be surprised if you are approved with a low credit limit. Most student credit cards do not have an annual fee and offer fairly limited rewards such as cash back on purchases or a bonus for good grades.
My first credit card was the Discover it® Student Cash Back, and I was initially approved with a $500 limit. Despite the low limit, my spending habits and positive behaviors, such as on-time payments, led the issuer to increase my credit limit within a year.
The information for the Discover it Student Cash Back card has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
Related: The best credit cards for college students
Secured credit cards
Secured credit cards are designed for borrowers with poor credit history who want a credit card but cannot be approved for an unsecured one. Secured credit cards require you to provide money upfront to be used as collateral before the issuer will extend a credit limit.
The funds are held in a secure account that you cannot access until you either close the credit card or qualify for an unsecured credit card.
For example, if you want a secured credit card with a $500 credit limit, most issuers will require a $500 deposit. If, at some point, you are unable to pay off the balance, the issuer can use the collateral to clear your debt.
Secured credit cards report your payment history to the credit bureaus, making them ideal for those looking to rebuild their credit after a difficult financial situation, such as bankruptcy.
Related: Best secured cards
Cobranded credit cards
Cobranded credit cards involve partnerships between well-known brands and credit card issuers such as Citi, Chase, Bank of America and American Express. Cobranded cards that partner with an airline earn miles with its specific frequent flyer program, whereas hotel cobranded cards earn points with a specific hotel chain.
Cobranded airline credit cards may include benefits such as a free checked bag, priority boarding and airport lounge access, whereas cobranded hotel credit cards include perks such as elite status, statement credits and free nights.
Some examples of cobranded credit cards include:
- Delta SkyMiles® Platinum Business American Express Card
- Aeroplan® Credit Card (see rates and fees)
- Marriott Bonvoy Boundless® Credit Card (see rates and fees)
Related: Best credit cards for air travel
Store credit cards
Store credit cards are similar to cobranded credit cards in that the credit card issuer partners with a specific retail store, offering enhanced rewards to entice cardholders to shop there. Most store credit cards can only be used at a specific store, though some can be used elsewhere.
Store-branded credit cards may offer cardholders a 0% annual percentage rate (APR) or deferred interest plans when spending at a specific store. For example, my first store-branded credit card was a Best Buy credit card, which I opened to help finance home appliance purchases. The card offered deferred interest for 24 months.
Some examples of store credit cards include:
The information for the Best Buy card and Prime Visa card has been collected independently by The Points Guy. The information on this page has not been reviewed or provided by the card issuer.
Related: The best store credit cards
Bottom line
As you can see, there are many different types of credit cards available, catering to frequent travelers, avid shoppers, students and more. If you're in the market for a new credit card, you're bound to find something that fits your spending habits, credit profile and how you prefer to earn and redeem credit card rewards.
You'll likely need to do some research, but finding the right credit card will help you organize your finances and earn valuable rewards.
Related: The best rewards credit cards for each bonus category
For rates and fees of the Amex Platinum, click here.
TPG featured card
at American Express's secure site
Terms & restrictions apply. See rates & fees.
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 5X | New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App. |
| 3X | Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines. |
| 2X | Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Pros
- Valuable dining and food-related credits
- Flexible rewards with airline and hotel transfer partners
- Multiple travel and purchase protections
- No foreign transaction fees
- Access to Amex Offers for additional savings (enrollment required)
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $8,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App.
- Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines.
- Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- Pay It® lets you tap in the American Express® App to quickly pay for small purchase amounts throughout the month and still earn rewards the way you usually do. Plan It® gives you the option to split up big purchases into equal monthly payments with a fixed fee. You’ll know upfront exactly how much you’ll pay.
- Updated! $120 Dining Credit: Earn up to a total of $10 in statement credits monthly when you pay with the Gold Card at Grubhub (including Seamless), Buffalo Wild Wings, Five Guys, The Cheesecake Factory, and Wonder. This can be an annual savings of up to $120. Enrollment required.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year at over 10,000 qualifying U.S. Resy restaurants after you pay for eligible purchases with the American Express® Gold Card. That’s up to $50 in statement credits semi-annually. Enrollment required.
- $84 Dunkin' Credit: Earn up to $7 in monthly statement credits after you pay with the American Express® Gold Card at U.S. Dunkin’ locations. Enrollment required.
- $120 Uber Cash on Gold: Enjoy up to $120 in Uber Cash annually with your Gold Card. Just add your Card to your Uber account and you'll get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an Amex Card for your transaction.
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- Take advantage of a $100 credit towards eligible charges* at over 1,300 upscale hotels worldwide when you book The Hotel Collection through AmexTravel.com or the Amex Travel App **. *Eligible charges vary by property. **The Hotel Collection requires a two-night minimum stay.
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- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.