Did you know that there are different credit card types? Here’s a guide to a few of them:

General Credit Cards

• General-purpose cards are issued by banks and other lenders. You get a bill once a month. If you don’t pay off the whole balance, you are charged interest.
• Premium cards offer extra perks, like cash back or airline miles. They may have a higher spending limit and lower rates than other cards. But they often require a higher credit score and higher income.
• Secured cards require a deposit. The spending limit is based on the deposit amount. They can be help you start or improve a credit record.

Specialty Cards

• Store credit cards can be used only in a certain store or group of stores. In general, they have higher interest rates.
• Affinity credit cards give a percentage to a charity or nonprofit. These cards usually have fees.

Other Types of Credit Cards

• Charge cards are the same as credit cards, except they must be paid off every month. They sometimes have a yearly fee.
• Debit cards are tied to your bank account. Money comes out of your account as soon as you buy something.

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GreenPath is a non-profit credit counseling organization. GreenPath’s goal is to offer guidance and support to individuals seeking to manage and overcome financial challenges through education, financial counseling and debt management programs. The information provided is for educational purposes only. Consulting with a licensed financial advisor and tax advisor is recommended before making any major financial decisions. GreenPath is not a debt settlement company, credit repair company, credit repair service, nor does GreenPath provide debt consolidation loans. By using this website, you acknowledge and agree that GreenPath is not responsible for any financial decisions you make based on the information provided on this site.