Credit cards have become a fact of life.
Most of us have at least one or are thinking of getting one.
In spite of this not many of us are actually aware of the different types of it available.
Knowledge of the types of cards in the market will help increase our options so that we can pick out a card most suitable for our needs and situation.
Read on for 5 different types of credit cards that you can choose from.
Unsecured Revolving: These are the general credit cards that most are familiar with.
The features are as follows:

• The card comes with a credit limit based upon the cardholder's credit history.
  
• The cardholder is allowed to purchase products and services up to the credit limit.
  
• The merchant selling the product or service processes the cardholder´s credit card information and sends it to the bank issuing the card.
  
• The bank reimburses the merchant immediately or within days.
  
• This loan received by the cardholder is unsecured.
  
• The cardholder may choose to pay off the loan within the non-interest grace period.
  Otherwise he or she may pay the minimum and carry the balance forward to the next month.
  
• Annual Percentage Rate (APR) is applied to the balance.
  

An unsecured revolving credit card is generally issued to consumers who have good credit history.
The main purpose of the card is to provide the cardholder with purchasing power that he or she may not have at point-of-sale.
Secured: Secured credit cards are generally suitable for someone new to it and has no credit history to qualify for a unsecured credit card or for someone who has screwed up his or her credit history and would like to rebuild it.
The features of this type are as follows:

• The cardholder must deposit a sum of money as collateral with the bank issuing the secured credit card.
  
• It comes with a credit limit equal to, a percentage lower than or higher than the money deposited.
  
• The cardholder is authorized make purchases up to the limit.
  
• The payment transaction is processed as above.
  
• The cardholder may choose to pay off the loan within the non-interest grace period or pay the minimum and revolve the balance to the next month.
  
• Annual Percentage Rate (APR) is applied to the balance.
  
• Usually the fees and APR applied to a secured one is much higher than an unsecured one.
  

The main difference between this type of credit card and the general one is the type of credit.
While cardholders enjoy an unsecured loan on the card mentioned above, a secured credit card holder must ensure that he or she has deposited a sum of money with the institution issuing the card.
Having a credit limit close to the sum of money deposited ensures that you only spend what you can afford.
This prevents the danger of getting knee deep in credit card debt problems.
However, do not use a secured one for a period longer than necessary as it may affect your credit history.
If you believe that you can be responsible with it, you should be able to handle an unsecured credit card too.
Charge Cards Charge cards share features similar to unsecured credit cards.
The differences are as follows:

• The cardholder is not allowed to carry forward any balance.
  The entire balance on each bill must be paid off every month.
  
• Given this non-revolving feature, there are no interest charges or APR involved in this card.
  

Store Cards A store card is like an unsecured credit card due to the following features:

• The cardholder is allowed to purchase products and services up to the credit limit determined by his or her credit history.
  
• The transaction process is the same as that of the above mentioned card types.
  
• The cardholder may choose to pay off the loan within the non-interest grace period or pay the minimum and revolve the balance to the next month.
  
• Annual Percentage Rate (APR) is applied to the balance.
  

The main difference between the store card and the general credit card is that the cardholder can use it to purchase products and services only from the store issuing the card.
Cardholders are entitled to benefits and special discounts pertaining to the products and services of the store.
However, the fees and APR applied to the store cards are higher than general ones.
Recently, there is a shift in store cards.
More and more of these store cards now come with a VISA or MasterCard feature that permits their usage.
Affinity Cards Everything about the affinity card is similar to the general one.
The only differences are as follows:

• The affinity card is not issued by the bank alone.
  It is co-issued another sponsoring organization whose logo appears on the card.
  
• The cardholder gets cash back, rewards or other benefits related to the sponsoring organization when using it.
  
• The bank would pay the sponsoring organization part of the profits whenever the cardholder uses the card.
  
• If the sponsoring organization is a charity, the cardholder will basically be donating to it every time he or she uses the card.
  

Regardless of the type of card you settle on based on your needs and wants, ensure that you read the fine print in your agreement very conscientiously.
Be aware of ridiculously high charges or arbitrarily added on fees.