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Low Interest
Intro
APR
GoToRate Annual Fee
0%* 11.99%* None*

Balance Transfer
Intro
APR
GoToRate (As Low As) Annual Fee
0% 11.99% (V) None

Rewards
Intro
APR
GoToRate Annual Fee
0% on purchases 13.90% (V) None

Find the best card for your lifestyle.

Here are four of the most-common types of cards.

4 types of card
  1. Zero-or-low interest rate
  2. Rewards
  3. Secured
  4. Student

1. Zero-or-low interest rate

Best for: Anyone willing and able to pay down existing credit card debt relatively quickly.

Pros: Most cards offer the bargain rate on balance transfers from other cards. The lower rate can save you a bundle on your current interest costs.

Cons: The low rate usually lasts for only six to nine months, then reverts to something higher, usually around 14 percent to 16 percent. One late payment and the card will revert to the higher rate immediately. If you transfer a large balance but don't pay it off during the favorable rate period, you may end up with a higher rate than you had to begin with.

Find the best rate.

2. Rewards

Best for: People who make the majority of their purchases on a credit card and pay off the balance each month.

Pros: Cards offer cash back, airline miles or points toward purchasing select merchandise based on the amount you spend. Some rewards cards, for instance, currently offer as much as 5 percent cash back on select purchases with no annual fee.

Cons: Some cards have high interest rates and annual fees that cancel out the reward benefits. Other have complicated and unfavorable redemption policies. Always read the offer carefully.

Find the best deal.

3. Secured

Best for: Someone with has gotten into trouble with credit cards in the past.

Pros: Most secured cards report to the three credit bureaus, so using one responsibly can be a way to establish or repair your credit rating.

Cons: The secured part means you put down a deposit, usually between $200 and $250, with your application. Many secured cards have high interest rates and annual fees. Read the fine print very carefully.

Find the best rate.

4. Student

Best for: College students who can handle money responsibly.

Pros: Students can qualify for theses cards without an established credit rating. Many offer extra benefits such as cash back or bookstore discounts.

Cons: Some companies charge higher interest rates for students. It's easy for students who are inexperienced with handling credit cards and finances in general to rack up unmanageable debts quickly.

How to Choose?


Good financial management starts with a solid education. At LoveToKnow Credit Cards, we offer a one-stop information portal so you can make the best decisions for your financial goals.

Types of Credit Cards is a vital component to this site. Our experts do the research, make the comparisons and present the options necessary for sound financial decisions regarding the use of credit. In today’s electronic society, using credit wisely can make life easier, but not every form of credit is right for everyone.

The clear, unbiased approach of this site will hopefully help you avoid the pop-ups and cut through the clutter of offers clogging your mailbox and inbox. When you’re ready to compare the myriad types of credit card options, you’ll find them all right here.

LoveToKnow Types of Credit Cards Will Help You Decide

The choices for credit cards vary tremendously, based on user interests and specifics. A mere handful of options include prepaid, limited, no limit, merchant exclusive, business only, annual fee, no annual fee and incentive-based cards.

We hope you’ll use this site to gain knowledge about credit cards, using credit wisely, and protecting yourself from problems associated with identity theft. You'll also find information here about dealing with debt. Please feel free to leave relevant comments on any of the articles, and let us know if we can provide you with additional information.

Comparing the various types of credit cards

Card types have multiplied in recent years; find the right one for you

By Emily Starbuck Gerson and Ben Woolsey

When you look back at the history of credit cards, they started out simple and standard: Each issuer produced one card with one set of features. Today, credit cards come in multiple levels with ranging interest rates, fees and reward programs, so before you fill out an application, it's important to know which will best suit your financial situation and lifestyle.

The following is a brief description of the most common types of credit cards available.

Standard credit cards
These credit cards are the most common and are readily available from most banks and financial groups. They are unsecured, which means you do not have to put down a security deposit to prove the money can be repaid. The way the annual percentage rate is offered or calculated for these cards can vary. Here are two examples:

  • Balance transfer credit cards
    Balance transfer credit cards allow consumers to transfer a high interest credit card balance onto a credit card with a low interest rate. Typical in the market today are balance transfer credit cards with an introductory annual percentage rate (APR) of 0 percent, with that introductory or "teaser" rate lasting several months up to a year. The terms of balance transfer credit cards varies between offers, so be sure to thoroughly read the terms and conditions for each card. Compare balance transfer credit cards.
  • Low interest credit cards
    Low interest credit cards offer either a low introductory APR that jumps to a higher rate after a certain period, or a single low fixed-rate APR. Low interest cards can be very useful when consumers need make a large purchase because it allows several months to a year to pay it off with very low or no interest. Before using a low interest card, read all the terms and conditions of the introductory rate so you will not be surprised by fees or accumulated interest. Compare low interest credit cards.

Credit cards with rewards programs
Reward credit cards allow users to earn incentives for making purchases with their credit card. Points accumulate for each dollar charged on the card, and cardholders can redeem these points for various rewards. Reward cards usually require better-than-average credit for approval. There are seven major types (not including airline miles / frequent flier cards, which we'll discuss a bit later).

  • Cash back credit cards
    This type of credit card allows you to earn cash rewards for making purchases. The more the card is used, the more cash rewards you receive. Most cash back cards earn users around 1 percent of total purchases, excluding interest and finance charges. Some cards offer a higher cash back percentage with increased usage; others offer a higher cash back percentage at select merchants or for particular types of purchases. Since cash back programs are costly to credit card companies, some of these cards have an annual fee that can vary from $50 to $100. This type of card is best for people who are faithful about paying off their balances each month. If used appropriately, a cash back credit card can earn the cardholder a significant amount of money over time. Compare cash back credit cards.
  • General reward points credit cards
    Reward credit cards are similar to cash back cards in that cardholders can accumulate points toward a reward structure, which is based on how much the card is used over time. General reward cards offer cardholders a variety of items to cash points in for: gift cards, electronics, hotel stays, plane tickets, jewelry, pet supplies and more. Some rewards can be attained for 1,500 points; others cost 200,000 points. Reward programs and promotional offers often change; thoroughly review a card's terms and conditions before applying.
    Some general reward credit cards come with an annual fee ranging from $50 to $100, although most have no annual fee. Reward cards are best for people who regularly pay off their balances each month. By minimizing their finance charges, individuals will reap greater benefits from the associated rewards credit card. Compare reward points credit cards.
  • Hotel or travel points credit cards
    This is a genre of credit cards specific to hotels and travel. Some cards are co-branded with hotels, such as the Marriott Rewards Visa card, or the Hilton HHonors American Express card. These credit cards allow you to earn points for all purchases, in addition to bonus points for dollars spent on stays at the respective hotel chain. You can redeem your points for free nights and upgrades at the hotel chain your card is co-branded with.
    Then there are broader hotel and travel cards such as the Bank of America's MilesEdge Visa, with which points can be redeemed for travel, theme park admission, stays at major hotel chains and more. Blue Sky from American Express is similar -- points can be applied toward plane tickets, hotel stays, rental car use or cruises.
    Because these reward programs can be costly for credit card companies, many of these cards come with an annual fee. If you are not a frequent traveler, the annual fee may negate the benefit of the rewards earned. Compare hotel/travel points credit cards.
  • Retail rewards credit cards
    These credit cards are co-branded with a major retailer, such as Disney, Amazon.com or Best Buy. Points are accumulated by making everyday purchases, though cardholders are awarded with double or triple points for making purchases from the co-branded retailer. Reward points must be redeemed for products or services from that specific retailer. With the Best Buy MasterCard, for example, you earn up to 2 percent back from any purchase with the card, and 4 percent back from Best Buy purchases. Cardholders receive the reward money in the form of reward certificates that can be used only at Best Buy. With the Disney Visa card, points accumulate for every purchase, and they can be redeemed for Disney products or vacations. Compare retail rewards credit cards.
  • Gas cards with points or rebates
    Gas cards come in two species: general and brand-specific. General cards treat all gas companies equally, while brand-specific cards favor one gas company. The Discover Open Road card, a general gas rebate card, gives you 1 percent cash back for general purchases but rewards you with 5 percent back for buying gas or having auto maintenance done at any company. The BP Visa, in contrast, will give you a 1 or 2 percent rebate for regular purchases, but you will earn 5 percent rebate only when buying gas at BP stations.
    If you tend to be loyal to a certain gas company, a brand-specific card may benefit you, but if you tend to just stop at whichever station is closest, you may be best with a general gas rebate card. Additionally, it's important to remember that a gas company may be very popular in one state, but uncommon or nonexistent in other states, making brand-specific credit cards less than ideal for long road trips. For example, BP is a very common gas station in Florida, but there are few of them in Texas. Sinclair gas stations are in 21 states, but if you have a Sinclair MasterCard and are driving through California, you're out of luck. Compare gas cards.
  • Automobile manufacturer rewards cards
    Auto rewards cards allow consumers to earn points that can be redeemed toward the purchase of a new or used car, auto-related expenses or merchandise. With the GM Flexible Earnings MasterCard, for example, cardholders can opt for cash back rewards, or apply their earnings toward the purchase of a new GM vehicle. This card is most beneficial to those looking to purchase a vehicle in the near future. Compare auto rewards cards.
  • Home improvement rewards credit cards
    These credit cards allow consumers to earn reward points for all purchases, while earning extra points for home-related expenditures. For example, with the Citi Home Rebate MasterCard, you earn 1 percent back on regular purchases, but 6 percent back on purchases involving utilities, cable/satellite TV, Internet connection and telecom for the first year.
    Rebates earned are automatically applied to your mortgage principal. Bank of America's Home Advantage World MasterCard works the same way, though points can be redeemed for cash back, travel, gift cards, merchandise if you decide not to apply them to your mortgage. Compare home improvement rewards cards.

Airline mile / frequent flier credit cards
While certain general reward credit cards allow points to be redeemed for plane tickets among other things, there is a subset of reward cards specifically for air travel. This type of card allows consumers to earn airline mile credits whenever they make purchases. Some cards are co-branded with a specific airline, while some are generic and can be redeemed for tickets with a variety of airlines. Points can be redeemed for airline travel, much like frequent flier miles.

  • Airline-specific credit cards
    These cards are associated with one airline. Typically, the cardholder accumulates points from both making purchases with the card and by flying on the specified airline. For example, with Chase's Continental MasterCard, cardholders accumulate Continental frequent flier miles (called OnePass miles) both from spending with the card and from flying with Continental. These cards come with other perks -- for example, some allow you to earn double points when you use the card to purchase plane tickets with that airline. Compare airline-specific cards.
  • Generic airline miles cards
    Credit cards such as Miles by Discover allow you to redeem your reward points for air travel through any airline, travel agent or online travel site. This is a great option for people who aren't involved in a frequent flier program and aren't loyal to any particular airline. It allows you the flexibility of redeeming your miles for whichever airline best suits the needs of your trip. With a generic airline card, you gain points for every dollar spent on the card, but because it is not associated with a particular airline, you can't gain additional points by flying. Compare generic airline miles cards.

Each airline credit card is a bit different, so be sure to read the card's terms and conditions to find out how many miles you gain for every dollar spent. Other things to look for are how many miles you need before you qualify for a free plane ticket, if there is a cap on points that can be earned annually and whether or not unused airline miles expire. Some expire in five years while others do not expire at all. Airline mile reward programs can be costly for credit card companies, so many of these cards come with an annual fee. This type of reward program is beneficial for frequent travelers or those who want to use their card to plan vacations, but the associated fee might make them impractical for other cardholders.

Bad credit and/or credit repair cards
Credit can easily go from good to bad due to poor budgeting or simply by an overlap between jobs. If your credit score is less than satisfactory, it does not mean you cannot qualify for a credit card. There are several options available to those who have had bad credit in the past and for those who are currently trying to repair their credit.

Depending on your specific situation, debt consolidation or use of introductory APRs on balance transfers may be wise choices. If you still need credit or want to start repairing your credit by proof of action, there are several credit cards designed to help rebuild poor credit histories.

  • Secured credit cards
    Secured credit cards require collateral for approval. A security deposit of a predetermined amount is needed in order to secure the credit card, and the security deposit generally needs to be of equal or greater value than the credit amount. Collateral can come in the form of a car, boat, jewelry, stocks or anything else of monetary value. Secured credit cards are for people with either no credit or poor credit who are trying to build or rebuild their credit history.
    Cards that help rebuild credit often come with low credit lines (such as $250) and additional fees, such as an application fee, may apply. Be sure to read over any terms and conditions for these add-on services before applying. If you use the card responsibly and pay all your bills on time, you can ask for a credit line increase down the road. The extra fees and low credit lines will be worth it if a secured credit card helps you get your overall credit back on track. Compare cards for bad credit.
  • Prepaid credit cards
    Prepaid cards are not credit cards at all, but are used and accepted just like them. The advantages of prepaid cards is that there are no finance charges and they help you avoid debt since all purchases are paid for beforehand. With these cards you determine the credit line by transferring however much money you'd like to have available to spend to the card. This eliminates the risk of running up credit card debt and makes the budgeting process much easier.
    Although most prepaid cards do not charge finance fees, other fees may apply, including monthly fees, startup or application fees, over-limit fees, ATM fees, reload fees and more. Be sure to thoroughly look over the terms and conditions for each specific card before applying. Compare prepaid cards.

Specialty credit cards
These types of cards are for consumers with unique needs for their credit use, such as business professionals and students. These credit card programs are designed specifically to meet the needs of those individuals.

  • Business credit cards
    These cards are available for business owners and executives and have many of the same features as traditional credit cards: low introductory rates, cash back programs and airline rewards. The difference is these cards come with many additional benefits and perks exclusively for those in the business world.
    Some of these bonuses include: Business expenses kept separate from personal expenses; special business rewards and savings; expense management reports; additional cards for employees; and higher credit limits.
    Every credit card is a bit different and promotional offers often change, so be sure to thoroughly look over the terms and conditions for each specific card before applying. Compare business credit cards.
  • Student credit cards
    Many college students need a credit card, but they generally have little or no credit history, which makes it difficult to get approved for a traditional card. Student credit cards are specifically designed for those enrolled in accredited four-year colleges and universities to help them build a credit history from the ground up.
    Compared to consumer credit cards, student credit cards are often scaled back somewhat in terms of rewards, features and other benefits, but they can still be a valuable commodity. If used wisely, a student can take the first step toward building a solid credit history with this type of credit card. Once they've proven financial responsibility, it will be much easier to qualify for reward cards and higher credit lines. Compare student credit cards.

Further Credit Card Links


Pakistan Credit Cards

Pakistan Credit Cards evolved with the introduction of credit cards by Habib Bank, the biggest bank in the country, when it launched the gold card a couple of decades ago. Credit cards gained popularity in Pakistan, however, only in the 1990s when Citibank launched its Citibank Pakistan Visa Card. The aggressive marketing and huge investment not only made Citibank the industry leader in Pakistan but proved to be a turning point in the history of credit cards in the nation.

After the successful launch of the Citibank credit card, Muslim Commercial Bank, the National Bank of Pakistan and Bank of America soon followed suit with their own credit cards.

Credit Cards Pakistan: Types

The various credit cards used in Pakistan currently are as follows:


  • Balance Transfer Card: This type of card can be used to transfer a high interest balance onto a low APR credit card.

  • Instant Approval Card: This type of card offers instant approval on

  • select credit cards from specific banks.

  • Business Credit Card: This card offers an expense management service that facilitates keeping track of outgoing business money. Additional credit cards for employees may be availed for their business travel expenses.

  • Student Credit Card: These are credit cards for high school and college students with lower credit limits and fewer incentives to help keep their spending in check.

  • Prepaid Credit Card: This type of card aims at controlling spending.

  • Reward Credit Cards: These are credit cards that "reward" purchases in the form of Cash Back or Points when the card holder spends on gas, airlines, hotel stay, travel or finance.
  • Pakistan Credit Cards: Major Issuers and Banks

    The largest issuers of credit cards in Pakistan include:

    Allied Bank

    • Allied Bank Essentials MasterCard
    • Allied Bank Premium MasterCard

    American Express

    Bank of America

    Citibank

    • Citibank Silver Credit Card
    • Citibank Gold Credit Card
    • Citibank Caltex Credit Card-Silver
    • Citibank Caltex Credit Card-Gold
    • Citibank Clear Credit Card
    • Citi Mobilink Credit Card

    Habib Bank Ltd

    • Habib Bank Gold Card
    • Habib Bank Green Card

    Muslim Commercial Bank

    National Bank

    United Bank Limited

    • UBL Chip Credit Card
    • UBL Auto Credit Card

    HSBC Bank

    Standard Chartered Bank

    • American Express Credit Card
    • Easy credit Card
    • Master Card
    • VISA Card
    • PIA Co-Brand Credit Card
    • Cricket Credit Card

    Pakistani law currently does not allow e-commerce retailers to accept payment by credit cards online. This is why no Pakistan-based site can transact business via credit card on the internet. However, credit cards issued in Pakistan are accepted elsewhere on the internet.

    The government is actively working on removing credit card payment obstacles, in order to facilitate expansion of the internet in Pakistan.