Credit cards are not one-size-fits-all. There are many different types of credit cards, each built for a specific purpose. Whether you’re a student, a traveler, a small business owner, or someone rebuilding credit, understanding types of credit cards can save you money and stress.
People search for what are the different types of credit cards because they want to make smart choices. Some ask how many types of credit cards are there? The answer depends on how you count, but most experts agree there are 3 types of credit cards at the core: rewards, low-interest, and secured. Others expand to 4 types of credit cards by adding business cards.
This guide covers all types of credit cards, including types of credit cards Visa, Mastercard, types of credit cards brands, and even types of credit cards in USA and types of credit cards UK. We’ll also look at Bank of America types of credit cards and types of credit cards Bank of America offers.
By the end, you’ll know what types of credit cards are there, what are the 4 types of credit cards, and what are the three types of credit cards that matter most.
The Core 3 Types of Credit Cards Everyone Should Know
Let’s start simple. Most financial experts group credit cards into three types of credit cards:
- Rewards Credit Cards
- Low-Interest Credit Cards
- Secured Credit Cards
These 3 different types of credit cards cover 90% of what people need. But there are more. Let’s explore each one in detail.
1. Rewards Credit Cards – Earn While You Spend
Rewards cards are the most popular among the types of credit cards. Why? Because you get something back every time you swipe.
How Do Rewards Cards Work?
You earn points, miles, or cash back on purchases. The more you spend, the more you earn. But only if you pay your bill in full each month. If you carry a balance, interest can wipe out your rewards.
Different Types of Credit Cards in the Rewards Category
There are four main kinds of rewards cards:
a) Cash-Back Credit Cards
- Flat-rate: Earn the same percent on everything (e.g., 2% on all purchases).
- Tiered: Higher rates in bonus categories like dining (3%) or gas (4%).
- Rotating categories: 5% back in changing categories (e.g., grocery stores this quarter).
Example: The Citi® Double Cash Card gives 2% cash back — 1% when you buy, 1% when you pay.
b) Travel Rewards Cards
- Earn airline miles, hotel points, or flexible travel points.
- Best for frequent flyers or road trippers.
- Often come with perks like free checked bags or airport lounge access.
Tip: Use travel cards for flights and hotels to maximize value.
c) Points-Based Cards
- Earn points you can redeem for gift cards, merchandise, or travel.
- Flexible but sometimes less valuable than cash back.
d) Co-Branded Credit Cards
- Tied to a specific brand (e.g., Delta SkyMiles®, Amazon Prime Rewards).
- Earn extra when you shop with that partner.
Rewards cards require good to excellent credit (670+ FICO score).
2. Low-Interest Credit Cards – Save on Debt
If you sometimes carry a balance, this is one of the smartest types of credit cards for you.
Why Choose Low-Interest Cards?
High interest can turn a $1,000 balance into $1,500 in just a year. Low-interest cards help you pay less over time.
Two Key Types of Credit Cards in This Group
a) 0% Intro APR Cards
- No interest for 12–21 months on purchases or balance transfers.
- Great for big buys (like furniture) or paying off old debt.
Example: The Wells Fargo Reflect® Card offers 0% intro APR for 21 months.
b) Balance Transfer Cards
- Move debt from a high-rate card to a low-rate one.
- Often come with a 3–5% transfer fee, but save much more in interest.
Warning: After the intro period, APR jumps to 15–29%. Pay off before then.
3. Secured Credit Cards – Build or Rebuild Credit
Secured cards are one of the most helpful types of credit cards for beginners or those with bad credit.
How Do Secured Cards Work?
You put down a deposit (usually $200–$500). That becomes your credit limit. Use the card, pay on time, and build your score.
Key Features
- Refundable deposit – Get it back when you close the account in good standing.
- Reports to all 3 credit bureaus – Helps raise your score fast.
- No credit check for many cards.
Example: The Discover it® Secured Credit Card offers 2% cash back at gas and restaurants.
After 7–12 months of good use, you may “graduate” to an unsecured card.
4. Business Credit Cards – For Entrepreneurs and Side Hustlers
Many experts say there are 4 types of credit cards when you include business cards.
Who Needs a Business Card?
- Small business owners
- Freelancers
- Gig workers (Uber, DoorDash, Etsy sellers)
Benefits of Business Cards
- Higher credit limits
- Expense tracking tools
- Employee cards at no extra cost
- Build business credit (separate from personal)
Example: The Ink Business Preferred® Credit Card from Chase earns 3X points on advertising, shipping, and travel.
You don’t need a big company – even sole proprietors qualify.
Other Special Types of Credit Cards You Should Know
Beyond the 3 types of credit cards or 4 types of credit cards, there are niche options.
Types of Credit Cards UK (Experian Focus)
In the UK, types of credit cards include:
- Credit-builder cards – For poor credit
- Purchase cards – 0% on new buys for 12–24 months
- Balance transfer & purchase cards – Combo deals
- Money transfer cards – Send cash to your bank account at 0%
- Travel cards – No foreign transaction fees
Learn more: Experian UK – Types of Credit Cards1
Student Credit Cards
- Low limits ($500–$1,000)
- No annual fee
- Help build credit before graduation
Store Credit Cards
- High APR (25%+)
- Only work at one retailer
- Good for discounts, bad for carrying balance
How to Choose the Right Types of Credit Cards for You
Ask yourself these 5 questions:
- What’s your credit score?
- Below 580 → Secured card
- 580–669 → Low-interest or starter rewards
- 670+ → Any card
- Do you pay in full every month?
- Yes → Rewards card
- No → Low-interest card
- What are your goals?
- Build credit → Secured
- Save on debt → 0% intro APR
- Earn rewards → Cash back or travel
- Do you travel?
- Yes → Travel rewards card
- Do you own a business?
- Yes → Business card
Credit Card Networks: Visa, Mastercard, and More
You’ll also see types of credit cards Visa, Mastercard, Amex, and Discover. These are payment networks, not card types.
| Network | Accepted Everywhere? | Best For |
| Visa | Yes | Everyday use |
| Mastercard | Yes | Travel perks |
| American Express | No (fewer places) | High rewards |
| Discover | Yes in the U.S. | Cash back |
Bank of America types of credit cards include both Visa and Mastercard options.
Real Examples of Types of Credit Cards Bank of America Offers
Bank of America has cards for every need:
| Card Name | Type | Best For |
| Bank of America® Customized Cash Rewards | Cash Back | Flexible categories |
| Bank of America® Travel Rewards | Travel | No annual fee |
| Bank of America® Premium Rewards® | Premium | High spenders |
Common Myths About Types of Credit Cards
| Myth | Truth |
| “All cards are the same” | No — different types of credit cards have different rules |
| “Rewards are free money” | Only if you pay in full |
| “Secured cards hurt your score” | No — on-time payments help |
Statistics That Prove Types of Credit Cards Matter
- 72% of Americans have at least one credit card (Federal Reserve, 2024)
- Average cash-back card user earns $300–$500/year (NerdWallet)
- 1 in 3 cardholders carry a balance (Experian)
- Secured card users see 30–100 point FICO increase in 12 months (U.S. Bank2)
Tips to Use Any Types of Credit Cards Safely
- Pay on time – Avoid late fees and credit damage.
- Keep balance under 30% of limit.
- Read the fine print – Know fees and APR.
- Set up autopay – Never miss a payment.
Track spending – Use apps like Mint or your bank’s tool.
FAQs About Types of Credit Cards
What are the 3 types of credit cards?
The 3 types of credit cards most experts agree on are:
- Rewards cards – Earn cash back, points, or miles.
- Low-interest cards – Save on interest with 0% intro APR.
- Secured cards – Build credit with a deposit.
What are the 4 types of credit cards?
Add business credit cards to the list above. So the 4 types of credit cards are:
- Rewards
- Low-interest
- Secured
- Business – For entrepreneurs and expense tracking.
How many types of credit cards are there?
There are 7+ main types if you count sub-categories:
- Cash-back
- Travel
- Balance transfer
- Secured
- Student
- Store
- Business
What types of credit cards are best for beginners?
Secured credit cards are best. You pay a deposit (like $200), get the same limit, and build credit by paying on time. No credit check needed for most.
What types of credit cards are best for bad credit?
- Secured cards
- Credit-builder cards (common in the UK)
- Student cards (if you’re in school)
What types of credit cards have no annual fee?
Most cash-back, low-interest, and secured cards have a $0 annual fee. Examples:
- Discover it® Secured
- Citi® Double Cash
- Wells Fargo Active Cash®
What are the different types of credit cards for rewards?
There are 4 main reward types:
- Cash back (flat, tiered, rotating)
- Travel miles
- Flexible points
- Co-branded (airline, hotel, store)
What types of credit cards are Visa and Mastercard?
Visa and Mastercard are payment networks, not card types. Any type of credit card (rewards, secured, etc.) can be Visa or Mastercard.
Conclusion: Pick the Right Types of Credit Cards Today
You now know all types of credit cards — from three types of credit cards to what are the 4 types of credit cards, types of credit cards in USA, and types of credit cards UK. Whether you want rewards, low interest, secured, or business cards, there’s one for you.
Start by checking your credit score. Then match your goals to the right card. Avoid high APR traps. Pay on time. And enjoy the benefits.
Pro Tip: Use tools like NerdWallet’s Credit Card Finder to compare options3.
What’s your biggest credit card goal right now — building credit, earning rewards, or paying off debt? Let us know in the comments!
References
- Experian UK – Types of Credit CardsComprehensive UK-focused guide on card types, eligibility, and risks. ↩︎
- U.S. Bank – Different Types of Credit CardsClear U.S. breakdown with real card examples and decision tips. ↩︎
- NerdWallet – Types of Credit CardsData-driven advice with comparison tools and user-focused insights ↩︎