Your Guide to the Different Types of Credit Cards
7 Min Read | Published: 2 December, 2025
This article contains general information and is not intended to provide information that is specific to American Express products and services. Similar products and services offered by different companies will have different features and you should always read about product details before acquiring any financial product.
New to credit cards? Compare the different types of credit cards to find the best fit, from secured and unsecured to travel and reward cards.
At-A-Glance
- Some of the major types of credit cards are unsecured cards, secured cards, charge cards, and revolving credit cards.
- You can also classify cards based on how you spend, like rewards cards, business cards, student cards, and travel cards.
- The credit card that’s right for you may depend on your financial goals and your lifestyle, so consider these factors as you decide on a card.
When you’re considering getting a new credit card, you may notice that there are several different types—and how they work impacts how you can benefit from them. Some cards are designed to help users build credit, while others are intended to help maximize rewards. Some cards require a deposit, while others don’t. Let’s walk through some of the main types of credit cards based on how they’re financed and how you might use them to help you decide which type best fits your needs.
Credit Card Types by Structure: Money Management
Credit is an important part of your financial profile, and having a better credit score may allow you to qualify for different types of loans, home rentals, and credit cards. For that reason, some credit cards may be best if you want to establish and build your credit, while others may be better if your credit is already strong. Let’s take a look at some of the types of credit cards based on how they function.
Unsecured Credit Cards
Most credit cards are unsecured, meaning that they’re not backed by any collateral. Approval for unsecured credit cards depends on your creditworthiness, which is based on your history of paying debts on time, your credit utilization, the length of your credit history, the types of credit you’ve taken out in the past, and how recently you’ve had a new hard credit inquiry. Once you’ve built up your credit, you may be able to qualify for an unsecured credit card with rewards and more benefits.
Secured Credit Cards
Secured credit cards are designed to help you build and establish your credit. They typically require a refundable deposit that serves as collateral. The amount you deposit usually sets your credit limit.
Like an unsecured credit card, you make regular payments to pay off the balance on your card. While you’re using your secured credit card, your deposit stays with your card provider. If you make timely payments, you may be able to graduate to an unsecured credit card, at which point you would receive your deposit back in full.1
Charge Cards vs. Revolving Credit
Some credit cards, known as charge cards, require you to pay your balance in full each month, whereas others offer revolving credit, which gives you the flexibility to make a minimum payment and carry a balance from month to month.
With revolving credit cards, if you make a minimum payment, you’ll generally owe interest, so if you know you’ll be able to pay off your balance in full every month, you might consider a charge card. You can also avoid interest charges on revolving credit cards by paying your statement balance in full each month. The type of card you prefer may depend on how you like to pay your bills and manage debt.
Credit Card Types by Use: Spending Habits
People spend money in all sorts of ways, and some credit cards are tailored to different habits or categories, from travel to grocery shopping to dining out. Let’s walk through some of the different card types that cater to different spenders.
Rewards Cards
Many credit cards are broadly referred to as rewards cards, meaning they earn points, miles, or cash back on your spending. Points can often be redeemed for cash back, statement credits, gift cards, or other benefits, and miles can be redeemed for discounts on airline travel.
You may want to earn rewards on everyday purchases, such as groceries, gas, or other general expenses. Alternatively, if you’re a frequent traveler, you may want a card that earns miles on airline purchases. With so many different types of rewards cards, odds are that you can find a card that works with your spending habits.
Cash Back Cards
Some credit cards offer cash back on your purchases, which you can, in turn, redeem as cash, statement credits toward your balance, or other rewards. Some may offer cash back at a flat rate, so you’ll earn a set percentage back on every purchase. Tiered-rate cards offer cash back based on specific spending categories, so you might earn a higher percentage back on gas or groceries, for instance. Depending on whether you have more specific spending habits or broader rewards goals, you may prefer a tiered-rate card or a flat-rate card.
Travel Credit Cards
If you’re someone who flies frequently (or wants to earn rewards to fly more frequently at a discount), then you might want to explore travel credit cards. Travel cards reward you with miles or points that you can redeem on air travel or hotels bookings. They may also offer other perks that make your travel experience smoother, like no foreign transaction fees, travel credits, or member status at certain airlines or hotel groups.
Student Cards
Designed for new credit card users, student cards can help young people establish credit while offering simple rewards like cash back.2 Because students are typically still building their credit history, student cards may have lower credit limits than other types of credit cards.3
Business Cards
Entrepreneurs and business owners have unique spending needs, such as tracking their business expenses and providing their employees with cards. Business card accounts may help them accomplish these goals. Plus, some may reward business owners based on their industry-specific expenses, like offering statement credits for accounting software or points on fuel used for company vehicles.
Balance Transfer Cards
If you’re having trouble managing payments for multiple high-interest debts, a balance transfer card could help. When you consolidate your debt with a balance transfer card, you can keep track of payments on one account, ideally with a lower annual percentage rate (APR) to help you pay less in interest.
Balance transfer cards may offer an initial 0% APR,4 so you can avoid interest for a set amount of time. That gives you the chance to get a head start on paying down your debt.5
How to Choose the Right Type of Card for You
When you’re deciding on a credit card, you may want to think about your lifestyle and how you could make the most of your frequent expenses. For example, if you travel frequently, you might want a card that rewards you for your travel expenses and helps you earn discounts on future flights. If you want to earn points on a wide variety of spending categories, you may want to get a flat-rate cash-back credit card that gives you rewards on all your purchases.
Alternatively, you may want to think about your financial goals. If you have limited credit history and want to start establishing credit, a student credit card could be a suitable option for you. Or, if you’ve had some financial missteps and want to focus on reestablishing your credit, a secured credit card might check the boxes. Consider your options and find a card that helps accomplish your goals.
Frequently Asked Questions
From a financial management perspective, the four primary types are secured, unsecured, charge cards, and revolving credit cards. Each one serves different financial needs and could benefit different types of people.
Some experts group credit cards by rewards, cash back, and travel cards. That said, the categories often overlap, so different cards could earn rewards in more than one way.
The card that best suits your needs may depend on several factors. For example, if you have a well-established credit history, you may look for a card with great rewards. However, if you’re still building your credit, a secured credit card may be a good option.
The Takeaway
Credit cards aren’t one-size-fits-all, so knowing the differences among the various options may help you choose the one that matches your goals. Whether you’re building credit, chasing rewards, or managing expenses, there’s likely a card that’s designed to meet your needs.
Explore and compare a wide range of options in the American Express Card Shop to help find a card that helps you achieve your goals.
1,2,3 “Should You Get a Student Credit Card or a Secured Credit Card?,” U.S. News
4 “What is a balance transfer — and should you do one?,” CNBC
5 “The Pros and Cons of a 0% Balance Transfer,” U.S. News
Scott Drueding Hanson is a content writer and copywriter based in Brooklyn. His work focuses primarily on personal finance.
All Credit Intel content is written by freelance authors and commissioned and paid for by American Express.
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