List of some of the most common types of credit cards, how they work, and some pros and cons to consider when deciding on a new card.

1. FIVE TYPES OF
CREDIT CARDS
LOW-INTEREST RATE
CREDIT CARDS
Most low-interest rate credit cards do not come with
a strong rewards program. To get the best interest
rates you will also need a good to excellent credit
score.
CASH-BACK REWARDS
CREDIT CARDS
Cash back rewards cards pay you cash back every
time you use the card to make a purchase. Some cards
offer higher reward rates for bonus categories.
TRAVEL REWARDS CREDIT
CARDS
Travel rewards cards offer miles or points for every
dollar you spend. They are often connected to
specific airlines or hotels and inlclude perks such as
upgraded status, free checked bags or hotel stays.
BALANCE TRANSFER
CREDIT CARDS
STORE CREDIT CARDS
Some stores offer their own credit card, such as
Kohl’s and Target REDcard. Other stores offer a
branded version that can be used everywhere else.
H T T P S : / / F A V E A B L E . C O M / H O W - D O - C R E D I T - C A R D S - W O R K
Balance transfer credit cards allow you to transfer
your balance from one card to another at a lower
interest rate. This helps you simplify your
payments, while you pay off your debt.
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