Types of credit cards, explained

Credit cards can be a beneficial addition to your wallet, as long as you choose the right one and use it wisely. Many rewards credit cards come with varying perks, such as cash back or travel rewards. And if you are a student looking to get your first card, or if you are struggling with credit card debt, finding a card to meet your needs can save you time and money. So it is important to know how to choose a credit card that’s right for you.

Types of credit cards

reward cards

A rewards credit card is a card that allows you to earn points, cash back, or airline miles on purchases. Some cards have a flat-rate cash back rewards rate, while others offer higher points on purchases made in specific spending categories. Flat rate rewards cards offer a set percentage of cashback or points on all purchases made with your credit card, and are good for cardholders who prefer a straight-forward rewards structure. On the other hand, tiered rewards cards offer higher reward earnings on purchases in various categories, like travel and dining. Using a rewards credit card is an easy way to earn on the purchases you’re already making.

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