by Gary Bunn

Cash-Back Cards

These are another type of reward card but specifically designed for cashback. This is where a small percentage of your purchase is awarded back to you as cashback. The amount of cash that is given back usually ranges from 1-5% depending on the card and the purchases made. This cashback is then given back to you at the end of the month. There's a great way to benefit from these cards called credit card stoozing. Best suited to those who clear their balance in full each month.

Secured Credit Cards: These type of cards are secured by a deposit and generally used for those who have a poor credit history and would like to begin to repair it. Such cards can only be used for purchases equal to the amount of the deposit. Alternatively, some companies may accept a personal asset as collateral instead of a cash deposit, but be careful when considering this type.

Prepaid Credit Cards

These are just like any other prepaid item, just like a mobile phone prepaid scheme. You pay the amount up front and can use the card until the balance is used up, after which you have to top up the balance again. These cards usually do not carry any financial charges but may carry a small annual fee.

Business Credit Cards

These cards are just right for small and medium business owners who can use these cards exclusively for business purposes. Generally these cards come with a high credit limit and allow a business owner to keep his personal and business expenses separate. Of course, these cards often carry the usual benefits such as low introductory APR, rewards, benefits etc.

Student Cards

These cards teach students on how to go about building a good credit history, and can really help the creditworthiness of students in later years provided they use the cards wisely. As such these cards do not carry the frills of other cards such as rewards.

This is just a brief introduction to the types of credit cards you can find in the market today. There are a few common rules you should think about regardless of the card type you are looking for. Firstly you should think carefully about the type of credit card that will suit you best. Secondly, be responsible. Don't overspend and stay within your financial limitations. Finally make certain you maintain your payments. If you run into trouble at any point make sure you let your provider know. They will be happy to help you out rather than have you miss a payment! You can read more on the types of credit cards available here.

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About the author

Gary is the Editor of Think-CreditCards.com, The consumer orientated credit card comparison site designed to help you find the perfect credit card while avoiding high interest rates, charges, and fees!