10 Types of Credit Cards (and How to Use Them)

There are hundreds of credit cards spread across dozens of credit card issuers. If you're looking for a credit card, start by figuring out the type of credit card you want. The types of credit cards 

on the market range from basic or "plain vanilla" with no frills to premium cards with lots of perks and benefits. Low Credit Line Credit Cards

Standard credit cards are also called "plain-vanilla" credit cards because they offer no frills or rewards. They're also uncomplicated and relatively easy to understand.

The standard credit card allows you to have a revolving balance up to a certaincredit limit. Credit is used up when you make a purchase and made available again once you've made a payment. A finance charge is applied to outstanding balances at the end of each month. Credit cards have a minimum payment that must be paid by a certain due date to avoid late-payment penalties.

Rewards Credit Cards

Just as the name indicates, rewards cards are those that offer rewards on credit card purchases. There are three basic types of rewards cards: cashback, points, and travel. Some people prefer the flexibility of cashback rewards, while others like points that can be redeemed for cash or other merchandise. Travel rewards cardsremain a favorite among frequent travelers because of the ability to earn free flights, hotel stays, and other travel perks. Low Credit Line Credit Cards