Types of credit cards

When you look back at the history of credit cards, they started out simple and standard: Each issuer produced one card with one set of features. Today, credit cards come in multiple levels with ranging interest rates, fees and reward programs, so before you fill out an application, it's important to know which will best suit your financial situation and lifestyle. 

The following is a brief description of the most common types of credit cards available. 

Standard credit cards : 

• Balance transfer credit cards 
  
• Low interest credit cards 
  
  

Credit cards with rewards programs :

• Cash back credit cards
• General reward points credit cards
  
• Hotel/travel points credit cards
  
• Retail reward credit cards
  
• Gasoline points / rebates credit cards
  
• Automobile manufacturer reward credit cards 
  
• Home improvement rewards credit cards 
  
  

Airline miles / frequent flier credit cards :

• Airline-specific credit cards
  
• Generic airline miles cards 
  
• Credit cards for bad credit
  
• Secured credit cards
  
• Prepaid debit cards 
  

Specialty credit cards 

• Business credit cards
• Student credit cards

What is a creditcard?

A credit card is part of a system of payments named after the small plastic card issued to users of the system. The issuer of the card grants a line of credit to the consumer (or the user) from which the user can borrow money for payment to a merchant or as a cash advance to the user. A credit card is different from a charge card, which requires the balance to be paid in full each month. In contrast, credit cards allow the consumers to 'revolve' their balance, at the cost of having interest charged. Most credit cards are issued by local banks or credit unions, and are the same shape and size, as specified by the ISO 7810 standard.