Credit Card Types 101

Saturday, January 14th, 2012
Updated: January 14th, 2012
The content is accurate at the time of publication and is subject to change.

Amidst the stiff competition that exists today, credit card providers are constantly introducing different kinds of cards to target people from different categories and with specific benefits. The most common kind of credit card is the ‘general credit card’ meant for common public. Besides this type of card, there are also a number of other options such as business credit cards, student credit cards, airline credit cards, store credit cards, secured credit cards and many more. Let us try to understand the different types of general credit cards available today.

Standard Unsecured Credit Cards: This type of card is provided by all credit card providers and is meant specifically for the general public. They are unsecured cards and offered to customers without any security, mortgage or guarantee. Most companies examine the credit rating of applicants before providing them the cards. This kind of card can also be of different varieties such as rewards credit cards and low interest credit cards. Standard credit cards offer the highest spending limits, and many might charge interest in the form of an APR, in addition to an annual fee.

Rewards Credit Cards: These types of cards are good for consumers who understand credit, and want to make their credit card a little more rewarding. Only standard, unsecured credit cards come with a rewards option, but it is not uncommon to find a business credit card with a rewards option as well. With a rewards credit card, consumers are offered cash-back bonuses or redeemable points for using their credit within a certain shopping category. Consumers can get between 1% and 5% cash-back on their purchases in grocery stores, gas stations, retail centers, restaurants and more. With a point reward system, consumers are awarded points based on their purchases, which can be cashed in at the company’s online mall.

Business Credit Cards: Many companies offer credit cards to small or large businesses, which they can use for making purchases related to the company or wherever desired. Business credit cards are similar to standard unsecured credit cards, but offer more flexible payment options, bigger credit lines, business-centered rewards programs, and accounting options to make running a business smoother.

Secured Credit Cards: These types of cards are also known as credit cards for people with bad credit. Therefore, it is obviously meant for people who have a poor credit history and cannot obtain a general credit card due to the same reason. The companies offering the card often put certain restrictions on its use, which is not typically seen in other cards. The credit limit is also lower in comparison to other cards. For example, limits are approximately 50 to 100% of the security deposit. That means, if a consumer puts up a $2,000 for their secured credit card, they will have a limit between $1,000 and $2,000. The most important thing that sets this credit card apart from the rest is that the customer has to deposit a particular amount as security to get this credit card. Since the credit history of the applicant is not checked for this type of card, therefore it is ideal for people who have a bad credit record.

You can easily apply for any credit card online. All you need to do is fill out an online application form, and then submit it directly on the website of the issuing bank or company. Within few minutes, you will be informed whether or not your application has been approved through an email. Once approved, your credit card will be mailed to your address within just a few days. The only requirement is that for secured credit cards you must have enough money to deposit in the form of a security deposit, and for unsecured credit cards a certain credit rating is required for instant approval. Please make sure you read the fine print before signing up for any credit card, so you know exactly what you’re getting into.

All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.

Latest Low APR Credit Cards Guides

What Is Credit Cards’ 0% Intro APR and How to Use it Right? July 5th, 2020

Of course, everyone knows that the most effective way to get rid of credit card’s interest is to pay off the entire debt before the due date every month. However, this is life, and everything may happen. For example, you can make some major purchase, or you may suddenly need a large amount of money […]

Continue »
0% APR Credit Cards’ Pitfalls You Should Be Wary Of March 3rd, 2020

When choosing a credit card, one of the most important criteria for many applicants, apart from a $0 annual fee and rewards program, is the presence of a 0% intro APR period. In brief, once you apply for a 0% interest credit card and get approved, you can make purchases during the specified intro period, […]

Continue »
Variable APR on a Credit Card – What Is It? February 22nd, 2020

Even if you are new to the world of credit, you, probably, noticed that some cards’ terms contain the word “Variable” relative to interest rates. Most applicants tend to never pay attention to this addition and have no haziest notion about its exact meaning. However, credit cards with a variable rate are the majority. So what does variable APR mean?

Continue »
How to Lower Your Credit Card APR January 24th, 2020

APR is an annual percentage rate or an interest rate you need to pay on your credit card for certain operations. There are some types of APR: a purchase APR, a cash advance APR and a balance transfer APR. They can either be different or the same.

Continue »
How To Know If A Low APR Credit Card Is Right For You February 2nd, 2019

Do you pay your credit card balance off in full every month without fail? Or do you find that some months, it’s difficult to deliver the total amount due, and you need to let some of it ride until next month? Perhaps you can only pay the minimum amount due, as interest mounts with each statement that comes into your mailbox.

Continue »
Best Credit Offer
Best Credit Cards from
Check off the cards you want to compare. Then click the Compare link to go to the comparison table.
Consumer Rating: 5 / 5
Horizon Card Services Group One Freedom Card
Copyright © 2001-2024 All Rights Reserved.

See the credit card's terms and conditions on the online application page. Note that this website may be compensated by credit card issuers when the visitor applies for a card through the links on this website. We do our best to maintain all information accurate and up to date. However, we do not warrant the credit card information won't change. Click the "Apply Online" button and review the current info on the secure credit card terms page.

Information in these articles is brought to you by Banks, issuers, and credit card companies mentioned in the articles do not endorse or guarantee, and are not responsible for, the contents of the articles.

The webpage is a free service and an information resource for credit cards and financial products and services available to eligible United States consumers. does not offer any warranties and is not a direct service. There are no guarantees for approval or offers when applying for a credit card. Please refer to the application if you would like more information on each credit card. When you click "Apply" for a particular credit card, please take the time to review the terms and conditions of the product/service at the issuer's website. All logos on the website are property of their respective owners.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer. Opinions expressed here are the author's alone, not those of the credit card issuer, and have not been reviewed, approved or otherwise endorsed by the credit card issuer. Reasonable efforts are made to present accurate info, however all info is presented without warranty. Consult a card's issuing bank for terms & conditions. makes every effort to keep information up to date and accurate. However, the information regularly changes and is presented without warranty. Therefore, we strongly recommend all our readers to visit the credit card application page by clicking "Apply Online!" button to review the detailed credit card's terms and conditions. Note that may be compensated by the credit card issuers when the readers apply for a credit card through this site. is an independent, advertising-supported website which receives compensation from the credit card issuers and companies whose offers appear on the site. Compensation may impact how and where products appear on our site, including, for example, the order in which they may appear on the site pages. does not review or list all available financial or credit offers.

You've successfully subscribed!

Please specify the following:All these fields are optional

Thank you for providing this information! We will make sure our letters are useful for You.

User Generated Content Disclaimer: These responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.