Different Types of Credit Cards: A Comprehensive Guide

With so many options available, choosing the right credit card can feel like finding a needle in a haystack.

Should you focus on rewards? Travel perks? A low interest rate? How to decide?

Or maybe you’re just starting out and need to build your credit history from scratch. Which card is best for that? The experience can be overwhelming.

But here’s the good news: understanding your options for different types of credit cards can make your choice much easier. Information is power. And whether you’re a college student, a frequent flyer or a small business owner, there’s a card out there that can meet your needs.

Let’s take a look at the most common types of credit cards and what they have to offer.

Standard Credit Cards

Also known as traditional credit cards, standard cards are unsecured credit cards that let you borrow money up to a certain credit limit. This limit is set by the card issuer based on your credit profile. Unlike some other credit cards, these options typically don’t offer rewards or perks – they’re simple, straightforward, and a great tool for everyday purchases and building a solid payment history.

Standard credit cards often are best for consumers looking to establish or rebuild their credit without the complexity of rewards programs. If used responsibly – meaning you pay your balance on time and in full every month – they can help build your credit scores over time.

One example is the Juzt Card, an unsecured credit card designed for people building or rebuilding credit. Juzt doesn't require a security deposit, offers instant digital access upon approval^[1], and reports to Equifax on a monthly basis to support credit growth.

Juzt Credit Card is issued by tbom®, Perryville, MO. Standard credit approval required. Terms, rates (APRs), and fees are subject to change. See the Juzt Credit Card Terms and Conditions for complete information, including APRs, fees, and repayment obligations. Not a commitment to lend.

Rewards Credit Cards

Rewards credit cards give you something back every time you use them. These rewards can come in the form of bonus points, airline miles or cash back, depending on the card.

These cards generally reward specific spending categories, like groceries, dining or gas. Some also may use bonus categories that rotate quarterly, while others apply a flat rewards rate to every dollar spent on everyday purchases.

If you pay your balance in full each month and want to earn rewards for your spending habits, a rewards card can be a smart financial tool. Just watch out for steep annual fees and higher interest rates, which can offset the value of your rewards if you carry a balance.

Rewards programs vary by issuer and may be subject to caps, category restrictions, devaluations, blackout dates, partner availability, and redemption rules. Some transactions may be ineligible for rewards. Review the applicable rewards program terms.

Cashback Credit Cards

A subset of rewards cards, cash back credit cards, let you earn cash on your purchases. Some cards in this category offer a flat rate – for example, 2 percent back on all purchases – while others feature tiered rewards or rotating bonus categories.

Usually, cashback redemption is flexible and may include statement credits, gift cards or physical checks. Whether you're spending money on dining, groceries, streaming services or online advertising, a cashback card can generate high-value returns, especially if your highest spending categories match the card’s highest-earning features.

Travel Credit Cards

If you spend a lot on travel-related purchases, a travel credit card can give you major benefits. These cards earn miles or points that you can redeem for flights, hotels and more.

There are two main types of travel credit cards, as outlined below:

• General travel rewards credit cards: These cards are fairly flexible and let you redeem rewards across a wide variety of travel providers. You also may be able to transfer rewards to partner airlines or hotels.

• Co-branded travel credit cards: These credit cards are affiliated with specific brands (like co-branded airline cards) and may include perks like free checked bags, flight upgrades and early boarding.

Travel cards often come with annual fees, but frequent travelers can easily outweigh the cost of such fees with statement credit reimbursements, exclusive access to airport lounges and other benefits. Whether you're a casual traveler or a globe-trotting road warrior, these cards are a powerful way to maximize the value of your spending while you’re on the move.

Secured Credit Cards

Secured credit cards require you to pay a refundable security deposit – usually an amount equal to your initial credit line. This cash deposit reduces risk for the lender, making secured cards easier for those with bad credit or no credit history to be approved for.

Despite the required deposit, secured cards work just like unsecured cards – you borrow against a credit line and pay off your balance each month. Many secured credit cards also report to all three credit bureaus, helping you build or rebuild your credit report over time. Some unsecured cards may even offer rewards for everyday spending.

And, of course, with responsible use, you may qualify to upgrade to an unsecured credit card once you've built a positive credit history.

If you'd prefer to avoid tying up cash in a deposit, an unsecured alternative like Juzt could be a smart option. It’s available with no deposit required and is designed specifically for people with limited or no credit history.

Student Credit Cards

Student credit cards are designed as starter credit cards for college students who may not yet have an established credit history. These cards usually have lower credit limits, more lenient approval criteria, and either very small or no annual fees.

To apply for a student credit card, you typically need to be enrolled in school and able to show a source of income. You also may need a co-signer, especially if you're under 21. Some student cards offer modest rewards or bonuses for good grades, and, if used wisely, they can be an easy and effective way to start building a solid credit profile.

Applicants under age 21 must demonstrate independent ability to pay or obtain a qualified cosigner, consistent with the Credit CARD Act requirements.

Business Credit Cards

Business credit cards are built for small business owners who want to keep personal and business expenses separate. These cards generally offer higher credit limits, employee card management tools, and specialized rewards cards that align with common business expenses like combined purchases, shipping, or online advertising.

Some business credit cards also offer statement credits, travel perks or even cash back. Like personal cards, they can be either secured or unsecured, and they may require a personal guarantee based on your credit history.

A business credit card can also help establish business credit, which may be useful for future financing needs.

Some business credit cards require a personal guarantee and may report certain activity to consumer reporting agencies. Policies vary by issuer.

Balance Transfer Credit Cards

If you're juggling high-interest debt, a balance transfer credit card may help. These cards allow you to move an existing balance from one card to another – often with a 0% introductory APR for anywhere from 12 to 21 months.

This introductory window can give you time to pay off debt without racking up more interest. But remember: balance transfer cards may charge a balance transfer fee, and you typically can’t transfer between cards from the same card issuer.

Used carefully, balance transfers can be a powerful strategy for debt consolidation and interest savings.

Balance transfer fees typically apply (e.g., 3%–5% of the amount transferred). Transfers are often not permitted between cards from the same issuer. Payments may be applied to lower-APR balances first, which can increase interest on higher-APR balances. Review your cardholder agreement for details.

Low-Interest Credit Cards

Not everyone can pay their credit card balance in full each month. That’s where low-interest credit cards shine. These cards may offer a permanently lower APR or a deferred interest period with 0% introductory APR on purchases.

Introductory 0% APR offers differ from “deferred interest” promotions. With deferred interest, if the promotional balance is not paid in full by the end of the period, interest may be charged retroactively from the purchase date. Review terms carefully.

These cards are especially useful if you plan to make a large purchase and then pay it off gradually. After the intro period ends, however, standard interest rates generally apply – so it’s important to understand your card’s terms and fees.

Charge Cards

Unlike credit cards, charge cards don’t allow you to carry a remaining balance from month to month. Instead, you’re required to pay the full amount due during each billing cycle.

Charge cards often have no preset spending limit and may include premium perks, but they also come with higher annual fees and stricter approval requirements. They’re usually best for consumers with excellent credit and strong payment history.

Store Credit Cards

A store credit card is tied to a particular retailer or group of retailers. There are two major types of store credit card, as outlined below:

• Private-label store cards can only be used at that specific store or its affiliates.

• Co-branded credit cards (also called co-branded cards) are issued by a financial institution and can be used anywhere that accepts credit cards, though they typically offer better rewards or perks at the partner store.

Store credit cards may offer discounts, special financing, or rewards for store purchases, but they usually carry higher interest rates and lower credit limits. If you use them responsibly, store cards can help you build credit and enjoy store-specific perks at your favorite stores.

Prepaid Credit Cards

Though often grouped with credit cards, prepaid credit cards function more like debit cards. Prepaid cards are not credit cards and do not provide access to credit. You load them with your own money up front and then spend until your balance runs out. Since you’re not borrowing money when using prepaid credit cards, they don’t help build your credit history, and they aren’t reported to the three major credit bureaus.

That said, prepaid cards are great for budgeting, travel or giving someone controlled access to funds. Some even offer limited rewards or online account management.

But if your goal is to build credit, you might consider options like the Juzt Card, which reports to credit bureaus and helps establish creditworthiness over time.

Co-branded Credit Cards

A co-branded credit card is issued in partnership between a retailer, airline or hotel and a card issuer. You’ll often find these labeled as co-branded airline cards or hotel cards.

Co-branded credit cards combine the versatility of a traditional credit card with brand-specific perks – like bonus points for purchases with the partner, free nights in a hotel, or free checked bags with your favorite airline.

If you’re loyal to a particular brand and spend a lot of money with them, a co-branded card can offer strong value and meaningful perks.

Affinity Credit Cards

Affinity credit cards are issued in partnership with charities, universities or nonprofits. When you use this kind of card, a portion of your spending is donated to the affiliated organization, often at no extra cost to you.

While they may not offer the most competitive rewards structure, these cards appeal to people who want their everyday spending to reflect their values.

Elite or Premium Credit Cards

At the top end of the credit card spectrum are elite or premium credit cards. These often come with high annual fees – but also with luxury perks, including airport lounge access, travel insurance, statement credits, concierge services and exclusive event access.

These cards typically require excellent credit and are designed for people who spend heavily and want top-tier benefits in return.