February 26, 2026
Written by Catherine Hiles
Certified Financial Education Instructor®
Certified Financial Education Instructor®
Catherine Hiles, CFEI®, originally hails from the U.K. and currently resides in Ohio, where she writes about finance, parenting, pets, home improvement, and more. In her spare time, Catherine enjoys running, reading, and hanging out with her husband, two young children, and energetic dog.
There are seven main types of credit cards: secured, standard, rewards, cash back, travel, store, and business. Each serves different financial goals and credit levels.
Secured cards help you build credit, while rewards cards typically require good to excellent scores, which are often 670 or higher.
Look beyond rewards at fees, interest rates, and whether the card's benefits match your actual spending habits.
If you're ready to apply for a credit card, understanding the different types available helps you pick one that supports your financial goals. We'll walk through seven main types, from cards for building credit to options for earning rewards.
The seven main types of credit cards are secured, standard/unsecured, rewards, cash back, travel, store, and business. These types differ based on their structure, such as secured versus unsecured, and their purpose, like building credit, earning rewards, or managing business spending.
Your credit score and financial goals determine which types you can qualify for. We'll start with cards for building credit and move to reward options you can work toward.
Card Type | Best For | Credit Needed |
|---|---|---|
Secured | Building/rebuilding credit | None |
Unsecured | Everyday purchases | Good |
Rewards | Points for various redemptions | Good |
Cash Back | Money back on spending | Good |
Travel | Frequent travelers | Good to excellent |
Store | Loyal shoppers at specific stores | Varies |
Business | Separating business expenses | Good to excellent |
Secured credit cards require a cash deposit for collateral. This deposit serves as your credit limit. Similar to a standard credit card, you'll need to make a minimum monthly payment to keep your card current.
Your payments on this card are reported to the three major credit bureaus – Experian, Equifax, and TransUnion – to help you build your credit score.
Your credit limit is based on your deposit amount. If you use your card wisely and make timely payments, some card issuers may increase your credit limit after a few months.
You may be able to upgrade your secured credit card to an unsecured card after a few months if you use it responsibly.
Some secured credit cards have variable interest rates and charge annual or monthly fees.
If you pay off your balance in full and close the secured card account, you can have your initial security deposit returned.
Advantages | Disadvantages |
|---|---|
Easy to qualify for | Upfront deposit required |
Helps you build credit | Lower credit limit |
Could upgrade to an unsecured card in the future |
Standard credit cards – also known as unsecured credit cards – don't require collateral or a down payment. These cards offer a credit limit based on your credit score, allowing you to make purchases and pay off the balance over time. The better your credit score, the better terms you'll likely receive. Generally, you'll need a "good" credit score of at least 670 to apply.
You can borrow against your credit limit throughout the month. You'll need to make at least the minimum payment by the end of the monthly billing cycle to avoid fees. You'll be charged interest based on your remaining balance.
Credit limits increase with higher credit scores.
The annual percentage rate (APR) on standard credit cards is around 22.33%, though rates vary by card.
Most cards have variable interest rates that shift with market conditions.
Watch for annual fees, late payment fees, and foreign transaction fees.
Advantages | Disadvantages |
|---|---|
Variety of card options | May not qualify with poor credit |
Higher credit limit with a good credit score | Some cards have monthly fees and high interest rates |
Pay off purchases over time | Potential to overspend |
Rewards credit cards offer you points for purchases that you can redeem for various benefits. Some cards reward all purchases, while others offer higher points in specific spending categories, like dining or gas.
You can redeem rewards for travel, statement credits, gift cards, merchandise, or other perks, depending on the card. This type of credit card is best for people with good or excellent credit scores who make a significant number of monthly card purchases.
Rewards cards usually require a good to excellent credit score of 670 or higher to qualify.
Some cards may have an annual fee.
Many rewards cards offer a sign-up bonus, allowing you to earn a lump sum of reward points once you spend a certain amount during the first few months of opening your card.
Some rewards cards limit the total points you can earn in a given quarter or calendar year.
Advantages | Disadvantages |
|---|---|
Earn rewards for everyday spending | May not qualify with poor credit |
May offer a sign-up bonus | Some cards have an annual fee |
Tiered rewards in select categories for some cards | Some cards have reward limits |
Cash back cards put money directly back in your pocket with each purchase. Most offer a flat rate, such as 1.5% on everything, while others provide tiered rewards based on spending categories.
For example, you might earn 5% back on groceries, 3% on gas, and 1% on everything else. You can redeem your cash back as a statement credit, check, or direct deposit.
Most of the best cash-back cards require a credit score of 670 or higher.
Some cash back cards don't have an annual fee.
Some cards may offer a higher cash back bonus for certain spending categories.
Advantages | Disadvantages |
|---|---|
Earn cash back for everyday spending | May not qualify with poor credit |
Maximize rewards in specific spending categories | Some cards have an annual fee |
Different reward redemption options | Some cards have reward limits |
Travel credit cards offer reward points or miles that can be redeemed for travel expenses like flights, hotels, and car rentals. These cards also offer travel-related benefits like travel insurance, airport lounge access, and baggage protection.
These credit cards make sense for people who travel often and want to earn rewards to help cover travel costs. However, these cards may have higher interest rates and fees than others.
Travel cards typically require an excellent credit score of 670 or higher.
Many travel cards offer a sign-up bonus, allowing you to earn a lump sum of bonus points or cash back for spending a certain amount during the first few months.
Some travel cards have an annual fee and a foreign transaction fee for purchases made abroad, but others don't.
Advantages | Disadvantages |
|---|---|
Earn rewards to redeem for travel | Need good or excellent credit to qualify |
Sign-up bonuses | Some cards have high annual fees |
Additional travel perks | May not be worth the cost if you don't travel much |
Store credit cards, also called retail cards, are issued by specific retailers and can usually only be used at that store or its partner locations. These cards often offer store discounts, cash back, and perks like free shipping or extended warranties.
Store cards can have higher interest rates and fees than other credit card types.
Rewards are limited and only available through the specific store or retailer.
These cards also tend to have lower limits than traditional unsecured credit cards.
Advantages | Disadvantages |
|---|---|
Earn rewards for shopping at your favorite store | Limited use, as they often can't be used at other stores |
Receive benefits like store credit, free shipping | Higher interest rates and fees |
May save money on purchases | Lower credit limits |
If you have a business or are self-employed, a business credit card can help you keep personal expenses separate from business expenses. These cards can provide rewards for business-related spending while helping you separate your finances.
Some business credit cards offer higher credit limits, which can be helpful when making larger business purchases.
Sign-up bonuses or low introductory APR offers are common.
You'll need your business tax ID and credit score to apply.
Higher spending limits help you maximize rewards on business purchases.
Many include business perks such as discounts on accounting software or purchase protection.
Advantages | Disadvantages |
|---|---|
Higher credit lines | Need business details to apply |
Helps build business credit | Typically need good or excellent credit |
Earn rewards | Risk of carrying a high balance |
The decision you make when choosing the right credit card depends on your financial needs, lifestyle, and spending habits. Your credit score may also affect the types of credit cards you qualify for.
Having more than one credit card can also help you improve your score and earn different benefits and rewards. Just be sure not to take on more cards than you can comfortably handle.
Networks like Visa®, Mastercard, Amex, and Discover process payments, while card types such as secured, cash back, and rewards describe the card's features and benefits. You can have a secured Visa or a rewards Mastercard – the network and type are separate.
Yes, having different card types can improve your credit mix. Start with one card you can manage well before adding others.
Credit score requirements vary by card type: secured cards don't require a minimum score, while many unsecured cards typically require applicants to have a credit score of 670 or higher.
Yes, secured cards are designed to help build or rebuild credit and require a refundable deposit rather than a minimum credit score. Paying on time helps you build history and eventually qualify for unsecured cards.
Check your bank statements from the last three months to see where you spend the most. Choose cash back if you buy lots of groceries and gas, or travel cards if you fly frequently.
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