What are the different types of Credit Cards available in America

Credit Card companies offer different types of credit cards available in America to different type of consumers. They look at demographic and accordingly create credit card for their needs. For example for Student community they have low interest credit cards or pre loaded debit cards. They offer various type of business cards for small business community loaded with incentives such as points, or cash back. Similarly they have a wide variety of credit cards for individuals, business and corporations.

Types Of Credit Cards

Now the question is how do you choose which card is better for you. There are many banks offering same credit card and how do you choose one out of them. Let's look at various type of credit cards offered by Banks, Credit Card companies, Departmental stores, Gas companies, Retail and Associate unions.

Secure or Unsecure Credit Cards

Secure Credit Cards:- This type of credit card is common with Students or people using first time credit card. In this type of credit card issuing bank requires that you make deposit amount which is held as security against the possibility of card holder being unable to repay the amount charged on the card. The main purpose of secured credit card is to build your credit history and credit score. Once credit line is established and there is history of payment transactions and no derogatory remarks mentioned in consumers file, improves your chances to get a unsecured credit card.






Unsecure Credit Card

The unsecured Credit Card is issued to customers having good credit history and banks will trust their  trustworthiness. In this type of credit card bank doesn't require you to deposit money upfront, Bank looks at your positive credit history and credit score and establishes  a balance on your credit card account and that decision is done based on your credit history.

Regular or General purpose credit cards

These type of credit cards are issued by credit companies like VISA, AMEX, MasterCard, Discover etc. These credit cards can be used at stores, retailers, Gas station, departmental stores, restaurants, Malls, or for travelling, etc. These cards also carry incentives such as points, cash back and rewards. Some credit card companies provide 1% to 5% cash back on purchases made with there credit card. The two important factor Credit history and Credit score are used to set the credit limit for each consumer.

Store or Retailer Cards

These type of credit cards are issued by individual stores having association with either credit card company or Banks. The single purpose of these cards is to use them only at there stores. For example on Shell or BP Gas cards you can buy gasoline on at their gas pumps. Similarly you can use Macys or Koal's credit card only at there stores for retail shopping.


How does it help to consumers? Suppose you want to improve your credit history, you can apply for these cards but not actually use that credit. The additional credit against your name will help to boost your credit score.

Additionally, if you like particular store for shopping you can use that credit card to get grace period days to repay the money to store. Some of these stores let you use there credit cards outside of there store but it comes with a cost. The interest rates for outside store shopping will be higher and it is advisable to read terms and conditions before using store card for outside purchases.

VIP or Premium Credit Cards

These type of credit cards are given to consumers with high credit score , excellent credit history and a sound financial account balance. These cards are also called as Platinum or Gold cards and come with excellent perks such as low APR, low interest rate, cash back, and free  travel upgrades. Usually these cards are offered to consumers with credit score above 750 and with no blemish credit history.

Charge Cards

A Charge cards is much like credit card except it doesn't involve rolling of  account balance  but it is required for consumer to pay full amount at the end of billing cycle. This card doesn't include interest rates but has account maintenance fees associated with it , which is usually very high. Read Terms and conditions before accepting or using the charge card.

Union credit cards or Association credit cards

These type of credit cards are only issued to the people who are part of a association which is issuing credit cards Such as universities, trade unions or private corporations.

Debit Cards

Your debit card is linked to Checking or saving account. The purchases made on debit card are paid directly to merchant on same day. These type of cards are mostly issued by banks but some credit card companies issue debit card which require depositing money upfront.

Types of Credit Cards - Bank Of America

 Bank of America - Understand Bank of America credit card types to know what's right for you

Bank of America is a leader in banking and issuer of Credit Cards to million of users in America. They provide General purpose credit cards, Student credit Cards, Charge Cards and Store cards for those stores associated with Bank of America.


In addition to above mentioned cards Bank of America also provides others credit Cards such as Popular Credit Cards, Cash rewards card, Travel and Airline reward card, Lower interest Rate cards, Cards to build or rebuild credit score etc.


Read more about Credit card types at Bank Of America

Types of Credit Cards - American Express (AMEX)

American Express - Understand American Express Credit Card types to know what's right for you


American Express is one more powerful leader in credit card industry issuing a variety of credit cards to fit the demand and purchasing need of consumers. Currently offering Charge Cards, Credit Cards, Reward Cards (General reward card, Cash back cards, Airlines miles card, Hotel / Travel cards, Retail or Store cards), Pre-Paid cards and a strong line of business credit cards.


American Express categorizes there credit  offering in four categories such as Personal credit cards, Small business credit cards, Corporate Credit cards and Prepaid cards.


Read more on Types of credit Cards available from American Express

Types of Credit Cards - Discover

 Discover - Understand Discover Credit Card types to know what's right for you





From a Credit Card pioneer to a full fledged bank , the Discover company puts customer first as their main tag line. In almost 30 years the company has built a formidable credit card business issuing credit cards to consumers worldwide.


Currently offering student credit cards, cash back credit cards and a host of business cards. Read more at Discover about the types of credit card available - Read more.  

Types of Credit Cards - Citi

Citi Credit Card types: Understand Citi Credit Card types to know what's right for you


One of the popular credit card company issuing credit cards under both MasterCard and VISA to consumers world wide.


The Citi is currently offering following credit cards:

0% intro APR Credit Cards

Balance Transfer Credit Cards

Rewards Credit Cards

No Anuual Fee Credit Cards

Cash Back Cards

Business Credit Cards

Student Credit Cards

Travel Credit Cards

Visa Credit Cards

MasterCard Credit Cards

Read more on Citi Credit Cards types and there current offerings. Read more.

Types of Credit Cards - VISA

 VISA Credit Card types- Understand VISA Credit Card types to know what's right for you


Company's tag line is whatever you need we have that card. VISA not only lets other credit card companies and banks to use there logo to issue credit cards but also issue directly credit cards to consumers.


Visa offers Credit  Cards, Debit cards, Student credit cards, Prepaid and Gift cards, Business cards, Signature Business cards etc.


Read more at VISA about the various credit card types available. Read more.




     
 

Capital One® - Capital One has several credit card options depending on your needs. They have cards that offer double miles on every day purchases all the way to cards that allow you to build credit while earning cash at the same time. They also have cards with a 0% intro APR on balance transfers so that you can transfer balances from other cards with high rates.

 

Chase - Chase has several types of credit cards to choose from such as rewards, travel, cash back, 0% intro and business. The most popular cards are the Chase Freedom(SM), Slate(SM) from Chase, Chase Sapphire(SM) and Chase Sapphire(SM) Preferred.

 
 
 

First PREMIER® Bank - First PREMIER® Bank offers secured and unsecured, fee-based credit cards. These credit cards are popular with people who have less-than-perfect credit and cannot get approved for a prime credit card, which requires a good credit history.

 

MasterCard® - MasterCard offers services that include easy bill pay, emergency assistance and safer online shopping. In addition to these services, you also get shopping protection, personal assistance and protection, travel assistance and protection as well as access to a wide range of experiences, promotions and savings.

 

Pentagon Federal - Offers consumers a variety of credit cards with some of the best terms, rates, and benefits available. Choose from PenFed Premium Travel Rewards American Express® card, PenFed Promise Visa card, and the Visa Platinum Gas/Cash Rewards card.

 

Simmons First National - One of the lowest APR rates available in the country. The Simmons First Visa Platinum Card offers a low fixed APR and no annual fee, as well as global acceptance anywhere Visa cards are accepted, travel insurance, car rental loss/damage waiver covering collision, theft and vandalism, and emergency cash and credit card replacement.

 
Source - Credit Card Guide - Read more: