With all the different types of credit cards available, choosing the right one can be a difficult choice. Touching on everything from instant approval to cash back cards, let’s sort it out.

There are so many types of credit cards out there that picking the one suited to your situation can be a challenge. Seems like a new card is being offered every day.

In order to choose a credit card, you need to understand what all the terms mean before you apply for a credit card.

Low Interest and 0% Balance Transfer Cards

These types of cards are the latest ones to hit the market. The idea is to get the consumer to apply for, or upgrade to, a credit card that offers a lower interest rate.

0% APR and 5% Cash Back Specials

Low interest cards are just that. There is a lower than usual APR on balances held over the billing period, typically 1.9% or 3.9%. Normal rates can be as high as 24% in some cases, so when you get a chance to hold a card charging 3.9%, that’s a big benefit.

Some of these cards even give you the opportunity to transfer existing balances to the new card at a low interest rate, sometimes even at 0% interest for a limited time.

Balance Transfer Credit Cards

This is very useful if you have a decent size or large balance outstanding and need to save some cash to pay down your balance.

Rewards Points and Cash Back Cards

These types of cards are increasing in popularity now. These types of credit cards are very simple. For every purchase you make with the card, you earn what are called “reward points” towards gifts, premiums or discounts on merchandise.

Find the Best Reward Credit Cards

Some of these can be significant like trips, appliances and/or clothes. Check with your credit card company to find out what rewards they offer, if any.

Cash back credit cards are similar to rewards points cards except that they pay you back a percentage for purchases made on the credit card.

This is usually reflected as a reduction in the balance on your monthly billing statement. These cash back rewards are nominal at around 1% or so, but it’s still free money to you.

Instant Approval Credit Cards

This term is a little misleading in and of itself. Although your application can be instantly approved, you may not have actual credit to use instantly. Big difference there, I would say. Credit.com offers instant approval and credit lines up to $1000.

More Instant Approval Credit Cards

Some card companies will give you a provisional (temporary) card to begin charging while others will be more careful about issuing actual credit.

Read The Terms

In all situations, it is smart to read the terms before applying so you know what to expect and don’t get surprised. Every consumer is different and requires a different credit card type.

Remember that over-applying can damage your credit history, so don’t just go apply for every card available and hope the numbers work in your favor.

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