Explore the 20 types of credit cards in USA available to consumers. Learn about rewards, cash back, travel, and other specialized credit cards to find the right one for your financial needs.
When it comes to managing your finances in the USA, understanding the 20 types of credit cards in USA can help you make the best choice based on your spending habits and financial goals. Whether you’re looking for rewards, low-interest rates, or credit-building options, there’s a card for every need. In this guide, we’ll break down the most common types of credit cards available, so you can find the perfect match for your lifestyle and maximize your benefits.
1. Rewards Credit Cards
One of the most popular 20 types of credit cards in USA, rewards cards allow you to earn points, miles, or cashback on purchases. These rewards can be redeemed for travel, merchandise, or statement credits.
Pros:
- Earn rewards on purchases.
- Flexible redemption options.
Cons:
- Higher interest rates.
- Annual fees may apply.
Best Reward Credit Card: Chase Sapphire Preferred® Card
2. Cashback Credit Cards
Cashback credit cards give you a percentage of your purchases back as cashback. These are straightforward and easy to use, offering cash rewards that can be redeemed for statement credits or checks.
Pros:
- Simple and direct rewards.
- No need for complex point systems.
Cons:
- May offer lower reward rates compared to other cards.
Best Cashback Credit Card: Chase Freedom Unlimited®
3. Travel Credit Cards
For frequent flyers, travel credit cards are among the best 20 types of credit cards in USA. These cards often offer miles or points for travel-related purchases and can include additional perks like airport lounge access and travel insurance.
Pros:
- Earn miles for travel-related purchases.
- Access to travel perks and insurance.
Cons:
- High annual fees.
- Points may expire if unused.
Best Travel Credit Card: Chase Sapphire Preferred® Card
4. Secured Credit Cards
Secured credit cards are designed for people with limited or poor credit histories. You make a deposit, which acts as collateral, and your credit limit is typically equal to the amount you deposit.
Pros:
- Easier approval with no credit history.
- Helps build or rebuild credit.
Cons:
- Requires an upfront deposit.
- Often comes with high interest rates.
5. Student Credit Cards
Student credit cards are specifically tailored for young adults who are just starting to build their credit. These cards often come with lower credit limits and fewer rewards.
Pros:
- Easier to qualify for.
- Helps establish credit history.
Cons:
- Lower credit limits.
- Higher interest rates.
6. Business Credit Cards
For entrepreneurs and business owners, business credit cards offer rewards for business-related expenses such as office supplies, travel, and marketing.
Pros:
- Separate personal and business finances.
- Earn rewards on business purchases.
Cons:
- High annual fees.
- Requires a good credit score.
7. Balance Transfer Credit Cards
Balance transfer credit cards help consolidate debt by offering 0% APR on balance transfers for a set period, allowing you to pay off existing debt without incurring additional interest.
Pros:
- 0% APR on balance transfers for a limited time.
- Lower interest rates for paying off existing debt.
Cons:
- Balance transfer fees may apply.
- High APR after the introductory period.
8. Low Interest Credit Cards
These cards offer lower APRs compared to standard credit cards, making them ideal for carrying a balance from month to month without accumulating high interest.
Pros:
- Lower interest rates.
- Ideal for ongoing balances.
Cons:
- Fewer rewards compared to other cards.
- May still have annual fees.
9. Prepaid Credit Cards
Prepaid credit cards are not traditional credit cards, but they function similarly. You load money onto them in advance, and they can be used for purchases just like a debit card.
Pros:
- No credit check required.
- Easy to control spending.
Cons:
- No credit-building benefits.
- May come with activation and usage fees.
10. Charge Cards
Charge cards are similar to credit cards, but they require full payment of your balance each month. They don’t have a preset spending limit, but failure to pay in full can result in hefty penalties.
Pros:
- No preset spending limit.
- Avoid interest charges if paid in full.
Cons:
- Must pay balance in full every month.
- High penalties for late payments.
11. Store Credit Cards
Issued by specific retailers, store credit cards offer discounts or promotional offers when you shop at that retailer. However, they typically come with high interest rates.
Pros:
- Discounts and special offers at retailers.
- Easier approval for those with poor credit.
Cons:
- High interest rates.
- Limited rewards outside the store.
12. Affinity Credit Cards
Affinity credit cards are offered in partnership with organizations like universities, charities, or professional associations. They often come with unique perks related to the partnered organization.
Pros:
- Special rewards related to an affinity group.
- Often comes with exclusive perks.
Cons:
- Limited redemption options.
- Higher fees or interest rates.
13. Secured Business Credit Cards
Secured business credit cards are designed for business owners with poor or no credit history. They require a deposit but offer similar features to business credit cards.
Pros:
- Helps build or rebuild business credit.
- Easier approval with no business credit history.
Cons:
- Requires a deposit.
- May have high fees.
14. No Annual Fee Credit Cards
These cards don’t charge an annual fee, making them a good choice for those who want to avoid extra charges while still enjoying rewards or benefits.
Pros:
- No annual fees.
- Simple and easy to use.
Cons:
- May have fewer rewards or benefits.
- Higher interest rates.
15. Premium Credit Cards
Premium credit cards offer luxurious perks like airport lounge access, concierge services, and higher rewards. However, they often come with high annual fees.
Pros:
- Exclusive perks and benefits.
- Higher rewards rates.
Cons:
- High annual fees.
- May require a high credit score for approval.
16. Zero Interest Credit Cards
These cards offer 0% APR on purchases, balance transfers, or both for an introductory period, allowing you to avoid interest charges while paying off debt.
Pros:
- 0% APR for a limited time.
- Helps save money on interest.
Cons:
- High APR after the introductory period.
- Balance transfer fees may apply.
17. Hybrid Credit Cards
Hybrid credit cards combine features of various credit cards, such as cashback, travel points, and rewards, giving you flexibility across multiple spending categories.
Pros:
- Earn rewards in multiple categories.
- Flexible redemption options.
Cons:
- May have high annual fees.
- Complicated reward structures.
18. Foreign Transaction Fee-Free Credit Cards
These cards are perfect for travelers, as they don’t charge extra fees on purchases made abroad, making international spending more affordable.
Pros:
- No foreign transaction fees.
- Ideal for international travel.
Cons:
- May come with higher annual fees.
- Limited availability of rewards.
19. Cash Advance Credit Cards
Cash advance credit cards allow you to withdraw cash up to your credit limit, but this feature usually comes with high fees and interest rates.
Pros:
- Provides quick access to cash.
- Can be used in emergencies.
Cons:
- High fees and interest rates.
- Not recommended for regular use.
20. Retail Store Credit Cards
Retail store credit cards offer discounts and special promotions for store purchases. While convenient for frequent shoppers, they often come with high interest rates.
Pros:
- Special offers and discounts at specific stores.
- Easier approval for those with poor credit.
Cons:
- High interest rates.
- Limited benefits outside the store.
Conclusion: The 20 Types of Credit Cards in USA
Choosing the right credit card among the 20 types of credit cards in USA depends on your personal spending habits and financial goals. Whether you want to earn rewards, consolidate debt, or build credit, there’s a credit card designed for every purpose. By understanding the features, pros, and cons of each type, you can make an informed decision that helps improve your financial situation. Explore your options today and select the card that best meets your needs.
