Connections

While most of us are very familiar with credit cards, we appreciate that understanding the differences between all of the types is not as common. That’s why we’ve created an overview of the most common types of credit cards and their features.

Standard: Standard credit cards, also known as unsecured credit cards, are the most common type of card issued. These “no-frills” credit cards typically feature lower fees and interest instead of rewards or perks. They can be a great option if you are trying to improve your credit history.

Rewards: As the name suggests, a rewards credit card provides perks for making purchases such as earning cash back, dividends, digital credits, travel credits, and more. Depending on your card, you may earn a fixed percentage on all purchases or have rotating categories (ie: groceries, gas, etc.) that earn a specific percentage during a given time period. It’s important to note that rewards cards may feature annual fees or higher interest rates than standard credit cards.

Secured: Secured credit cards are designed to help individuals build or improve their credit history when they may be ineligible for other types of cards. Typically, a secured credit card requires the cardholder to make a refundable security deposit as collateral. This provides the opportunity to build credit history while helping to ensure the balance accrued remains manageable to pay off. 

With a little more insight into the pros and cons of the different cards available, we hope we’ve made it easier for you to choose the best type of credit card the next time you’re in the market!