The 11+ types of credit cards you should know

Balance transfer cards

A balance transfer card gives you a sweet incentive to move your debt to another card provider. Namely, it offers a low interest rate on balance transfers — often 0% — for a long time. Pick up a balance transfer card if you need to get away from high interest rates for a while.

For example, consider the Citi Simplicity® Card, which offers a 0% intro APR on balance transfers for 21 months. You could transfer all of your credit card debt to the Citi Simplicity® Card and pay no interest on it for almost two years. In the meantime, you can slowly pay off the debt over time.

What credit score is ideal?

Card providers only want to take on your debt if they’re reasonably certain you’ll pay it off. That said, you’ll typically need a good to excellent credit score of 680 or higher to get a balance transfer card.

Why do card providers offer long low-APR periods on balance transfers?

It’s an incentive for you to ditch your current provider and switch allegiances. When you transfer your balance, a card company scores big because it acquires you as a customer.

Additionally, there’s a chance you won’t pay off your debt before your intro APR expires. At that point, you’ll start paying interest on whatever you owe — and that’s when your card issuer really starts making money.

Travel cards

As you spend with a travel card, you’ll receive points or miles that you can later redeem for travel around the world.

You’ll usually find three types of travel cards: general, hotel and airline cards.

General travel cards offer rewards that you can spend on a variety of travel expenses. You can often redeem rewards for flights, hotels, cruises and even rental cars. Because these cards are flexible, they’re very popular among travelers.

Compare travel credit cards

• Chase Sapphire Reserve®
• Capital One Venture Rewards Credit Card
• American Express® Gold Card

What is a hotel card?

A hotel card is cobranded with a hotel chain. You’ll receive more points when you spend money at the specified chain that you can redeem for free hotel stays. This type of card usually offers exclusive perks such as automatic status upgrades in a hotel’s loyalty program.

Compare the best hotel cards

What is an airline card?

An airline card is cobranded with an airline. It gives you more miles when you spend with a specified airline that you can later redeem for free flights. This type of card typically offers benefits like priority boarding and free checked bags.
Compare the best airline cards

Subprime cards

Subprime cards are aimed at customers who can’t get credit anywhere else. Unfortunately, they often come with expensive activation fees, high APRs and shady terms.

Consider getting a secured card instead, or apply for a personal loan if you need funds quickly.

What credit score do I need?

Subprime cards are designed for those with severely damaged credit. Still, consider a card that allows you to prequalify — this way, you’ll get a good sense of whether you’ll be approved before you submit an application. Even better, skip subprime cards entirely and pick up a secured card.

Compare the best subprime cards

Prepaid cards

The easiest way to understand a prepaid card is to think of it like a gift card. Before you can use one, you have to load it with funds. Then just swipe it like a normal credit card.

Unlike a normal card, however, you don’t use a prepaid card to borrow money: You’re only allowed to spend the funds you’ve preloaded. Once you spend the money, you have to reload your card before you can use it again.

What credit score do I need?

You can get prepaid cards no matter what your credit looks like. However, they don’t help you rebuild your credit. Use these cards when cash is inconvenient — not to increase your credit score.

Compare the best prepaid credit cards

Student credit cards

As a college student, it’s an excellent idea to get a credit card. You can start building your credit well before you need it, and you can learn how to manage your money wisely.

You might not have a credit history yet, which means it could be tough to be approved for most credit cards. That’s where a student credit card can help — it’s designed for someone new to credit.

You won’t find amazing rewards with this type of card, but you can use it to build your credit.

What credit score do I need?

Usually, you can be approved for a student credit card with at least a fair credit score of 620 or higher. Keep in mind that you may still be denied for a card if your credit is too low. In that case, consider a secured card.

Compare the best student credit cards

Store credit cards

You can use a store credit card only at specified stores. For example, if you get the Hot Topic Guest List Credit Card, you can only use it only at Hot Topic.

Beyond that restriction, you can use the card like a normal credit card, charging purchases to it and carrying a balance if you’d like. This type of card typically offers store-specific perks to keep you coming back, such as certificates for store credit.

What credit score do I need?

If you have at least a fair credit score of 620 or higher, you’ll probably qualify for a store credit card. Retailers want to encourage you to spend with them, so they can be lenient about extending credit.

Will a store card help me build my credit score?

It’s possible. With a fair credit score, you’ll probably qualify for a store card.

As you make purchases with your store card and regularly pay off balances, you’ll steadily build your credit score. Then you can apply for the rewards cards you’ve wanted all along.

Compare store credit cards

• Target REDcard™ Credit Card
• Walmart Rewards™ Mastercard®

Gas credit cards

If you spend a lot on gas, consider a gas credit card. You’ll find general gas cards that offer rewards on gas spending no matter which brand you choose. (The Blue Cash Preferred® Card from American Express is an excellent pick.) You’ll also find brand-specific cards that reward you for pumping at specific gas stations.

A general gas card often gives you cash back when you spend on fuel. For example, the Blue Cash Preferred® Card from American Express gives you 3% cash back at US gas stations. On the other hand, a brand-specific card will likely give you fuel credits or a discount on fuel — say, $0.05 off each gallon of fuel.

Keep in mind that some gas cards are like store cards, limiting purchases to fuel at specific gas stations.

What credit score do I need?

It’s not as easy to get a gas card as it is to get a store card. You may still qualify if you have fair credit, but it’s much easier to be approved with a good credit score of 680 or higher.

Compare gas credit cards

• Blue Cash Preferred® Card from American Express
• Costco Anywhere Visa® Card by Citi

Compare the best gas credit cards