Different Types of Credit Cards

9 min read

Last Updated: October 10, 2025

Table of contents

Key Takeaways

Some rewards credit cards offer fixed rewards rates, while others allow you to earn more in specified spending categories.
If you’re new to credit, a student or secured card may help you build your credit history.
The best credit card for you depends on your unique needs and qualifications.

There are many types of credit cards available, each with its own perks, requirements, and conditions. With so many credit card options, how do you find the right one for you?

The best credit card for you depends on your personal financial situation and how you plan to use it—for travel, everyday spending, emergencies, or anything else. Whether you have an established credit history or are just starting out, there may be a card for you.

Different types of credit cards are best for different uses

When evaluating credit card options, it's important to think about your financial goals. Maybe you want to maximize rewards on eligible purchases, build credit history, or manage credit card debt.

Different types of credit cards may be better suited to different goals. For example, you may use a rewards card to earn cash back, points, or miles on everyday expenses, which you may redeem as a statement credit, for travel expenses, or for cash. Credit-building cards, on the other hand, may be better for establishing a credit history or repairing your credit score. Compare your options to find the best fit.

Other kinds of payment cards, like a debit card, gift card, or prepaid card, may look like credit cards. But they don’t give you access to a credit line or build credit history.

Credit cards with fixed rewards

Some types of rewards credit cards earn miles or cash back at the same rate on all eligible purchases, regardless of category. With fixed-rate credit cards, you’ll earn the same rewards per dollar for each eligible purchase, no matter how much you spend.

Fixed-rate rewards cards might offer a lower rate than other rewards cards. But you may still earn a lot of rewards by using the card on most of your normal purchases. Credit card interest may cut into your rewards, so it’s important to repay your balance quickly and avoid charging more than you can afford on a debit card.

Credit cards with bonus rewards categories

If you mainly use your credit card for certain types of purchases, like travel, dining, or gas, you may want to opt for a rewards credit card with bonus rewards in these categories. Tiered rewards cards, like the Discover it^® Chrome Gas & Restaurant Credit Card, let you earn more rewards in specified categories, and may allow you to make the most of your shopping habits.

Some cash back credit cards have bonus categories that change throughout the year. The Discover it^® Cash Back Credit Card allows you to earn 5% cash back on everyday purchases at different places you shop each quarter, up to the quarterly maximum when you activate.

To make the most of a rotating rewards card, keep track of the bonus categories and remember to activate your new offers each quarter.

Travel rewards credit cards

When you shop with a travel credit card, you earn rewards that you may redeem for flights, hotels, gas, rental cars, or other travel-related purchases. Some cards may also offer more flexible redemption options.

For example, the Discover it^® Miles Card lets you earn 1.5x Miles on every purchase. Easily redeem Miles as a statement credit for travel purchases or get cash.² And Discover^® matches the Miles you’ve earned on your credit card at the end of your first year.³

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Some card companies may offer additional perks on their travel credit card option that make trips easier, like room upgrades or access to an airport lounge.

Types of credit cards to build credit history

If you’ve just started your credit journey, you may not be eligible yet for every type of rewards card. However, you might qualify for a card designed to help you begin building your credit history.

Secured credit cards

If you’re starting from scratch or have little credit history, you may qualify for a secured credit card. When you open a secured credit card account, you put down a refundable deposit that secures your credit limit. If you don’t repay your credit card debt, the issuer may keep your deposit and apply it to the outstanding balance. Otherwise, secured credit cards work like unsecured credit cards. As long as the credit card company reports your activity to a credit bureau, a secured card helps you build credit history.

Did you know?

You don’t have to miss out on rewards as you start building credit history. The Discover it^® Secured Credit Card offers cash back — earn 2% Cashback Bonus^® at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter, automatically.⁴

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Student credit cards

If you’re at least 18 years old and are enrolled in a two- or four-year college, you might qualify for a student credit card. Student credit cards are unsecured credit cards designed to help college students build credit history and learn responsible credit habits. A student credit card account may come with tools to help you improve your financial literacy, like an expense tracker on the credit card company’s mobile app.

Some student cards may offer rewards at places college students shop, like convenience stores and gas stations. For example, both the Discover^® Student Cash Back and Chrome for Students cards are cash back credit cards.

Types of credit cards to save on interest

Any balance that you carry from month to month on your credit card typically accrues interest. To save on interest, pay your balance in full each month or look for cards with a low introductory Annual Percentage Rate (APR) on balance transfers and purchases.

Balance transfer credit cards

With a balance transfer credit card offer, you may move debt from one credit card or personal loan to another credit card with a lower interest rate. Credit card companies may offer a 0% or low introductory APR for balance transfers. Transferring high-interest debt may help you pay down your balance more quickly and keep interest charges under control.

To benefit from a balance transfer card offer, try to repay your balance in full before the introductory period ends. Any balance that remains will typically accrue interest at the credit card’s standard interest rate.

For some credit cards, the low intro APR applies only to the transferred balances, not new purchases, so it’s important to keep your spending to a minimum while you pay down your balance.

0% intro APR credit cards for purchases

Some credit cards may come with a low or 0% introductory interest rate for purchases in addition to—or instead of—balance transfers. Low intro APR credit cards may help you break down an expensive purchase, like a vacation, into more affordable monthly installments without high interest charges increasing the amount you owe.

Keep track of the introductory period and the standard APR. Any balance left on your credit card after the promotional period ends accrues interest at the standard rate.

Other kinds of credit cards

You may encounter more specialized credit cards on your credit journey. They differ from traditional personal credit cards in important ways.

Business and corporate credit cards

Business credit cards work like personal credit cards, but they’re designed to handle professional expenses. Transactions on business cards often earn rewards, like miles or cash back, that you may redeem to help with business expenses. Because business purchases may cost more than everyday personal purchases, business cards may have higher credit limits, plus perks like expense tracking. A business of any size may be eligible for a business credit card.

A corporate card is a type of business credit card designed for major corporations with substantial revenue. A side hustle likely won’t cut it for a corporate card—your organization usually has to report millions of dollars in income, have multiple employees, and be able to prove good financial standing.

Corporate and business credit cards may help your organization build a business credit score, which may make it easier to qualify for business financing.

Co-branded credit cards

Sometimes, companies like airlines, retail stores, or hotel chains may partner with a credit card issuer to offer co-branded credit cards. A co-branded card may offer special perks with the partner brand, like discounts, bonus hotel nights, flight upgrades, or a higher rewards rate on purchases from the brand. Co-branded cards aren’t restricted to the partner brand. You may use co-branded cards anywhere you use a regular credit card.

Store credit cards

Some merchants, like department stores, clothing stores, or furniture stores, may offer store credit cards. You may usually only use a store credit card at the business that issued it or multiple retailers under the same corporate umbrella.

A retailer may offer you a store card to finance an expensive purchase, like a mattress. Qualifying for a store card may be easier than qualifying for a standard card, and many offer perks and rewards. However, a store credit card may charge a particularly high interest rate, so that credit card debt may mount quickly.

Charge cards

Unlike typical credit cards, a charge card doesn’t allow you to carry a balance from month to month. Instead, charge card issuers expect you to pay your balance in full each month. Paying any less than the total amount you owe typically results in late fees and high interest charges until you pay in full.

Most charge cards don’t have a set credit limit, either. You may use your card as much as you want, as long as you pay back the balance by the monthly due date.

What’s the best type of credit card for you?

The right credit card for you depends on your unique priorities and needs. Before deciding on a card, compare fees, perks, and terms to determine which is best for your financial goals.

You may choose to get multiple credit cards with complementary rewards programs to maximize your perks. However, applying for multiple cards at once may hurt your credit score, so it’s best to wait between applications.

The bottom line

No matter what credit card you choose, responsible credit habits pay off. By repaying your balance in full whenever possible and making each monthly payment on time, you may foster a positive credit history. With a strong credit score, you might qualify for a broader range of rewards credit card options in the future.

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