Credit cards can be a bit confusing. They are one of the most common forms of personal credit, easy to use, and they have almost become essential when you are buying things through online merchants or websites. But there are so many different types of credit card available on the market that it can sometimes be hard to know which is best for you. So if you are asking yourself: “What type of credit card should I get?” in this article we give you some hints and tips and a bit of guidance on the different types of credit card that you can choose from.

Standard Credit Cards

These are the most common type of credit cards, these are general purpose cards that provide you with a line of credit based on your credit record. The credit limit is established at the time that the card is issued and an interest rate is applied to any unpaid credit balance.

Reward Cards

An increasingly popular form of credit card are reward programs that are affiliated to credit cards. The general structure is that points are accrued for any amounts spent on the credit card. Sometimes this type of card comes with high annual fees or higher interest rates and generally work best for people who are able to pay off the full amount of expenditure each month before any interest is applied to the outstanding amount.

Secured Credit Cards

This type of card effectively gives you the convenience of a credit card without actually providing you with any credit – any expenditure is taken directly from your own funds. This is particularly useful for people who would not otherwise qualify for a credit card. If you are looking to rebuild your credit history, this is a good way to demonstrate to a financial institution that you can manage your finances and eventually apply for a standard credit card.

Specialty Credit Cards

These are also known as white-label credit cards and are often issued as a store card or through other service providers. Sometimes this type of card will deliver a percentage of expenditure to the charity or service provider that has issued the card to you.

When you are asking yourself the question, “What type of credit card should I get?”, think about your financial circumstances and your financial objectives to help you consider the different options available and make the choice that is right for you.