Credit cards generally fall into three main categories based on their primary features: rewards cards, low interest/balance transfer cards, and credit-building cards. Here's what you need to know about each type:

Rewards Credit Cards

Cash-back cards come in three varieties:

• Flat-rate cards: Earn the same percentage on all purchases (typically 1.5-2%)
• Tiered-rewards cards: Higher earnings in specific spending categories
• Rotating bonus cards: Categories change quarterly, requiring activation

Travel rewards cards offer two options:

• General travel cards: Flexible rewards for any travel expense
• Co-branded cards: Specific to airlines or hotels, best for brand loyalists

Low Interest and Balance Transfer Cards

These cards help manage or reduce debt through:

• 0% intro APR periods on purchases
• Balance transfer options with promotional rates
• Extended low-interest periods

Credit-Building Cards

Three main types help establish or improve credit:

• Secured cards: Require a security deposit
• Student cards: Designed for college students
• Alternative cards: Use non-traditional approval criteria

Remember that most premium rewards and low-interest cards require good to excellent credit (690+ FICO score), while credit-building cards are accessible with limited or poor credit history.

The best card choice depends on your spending habits, credit score, and financial goals. Consider whether you'll carry a balance, your typical spending categories, and your credit profile when selecting a card.

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