Different Types of Credit Cards And Their Best Uses, Part One – July 2019

 

THERE ARE TWO MAJOR TYPES OF CREDIT CARDS

credit cards from image Wikipedia
credit cards from Wikipedia
FIRST TYPE: NETWORK CARDS

There are two overall credit card types, network, and cobranded retail store cards. Within these types, there are four network types of cards AMEX, Discover, VISA, and MASTERCARD as well as hundreds of cobranded retail store cards.

This can lead to a great deal of confusion in choosing what to apply for and obtain. Therefore, the goal of this post is to untangle the confusion by identifying the types, networks as well as cobranded ones that exist to distinguish and choose between them. This way, one will have the advantage of applying for and using the best cards while avoiding problematic or less valuable ones.

 

ADDITIONAL INFORMATION

Besides this post’s specific information, one can find the recently published blog post series on ‘A Credit Card Rating System’. For additional reading, it is filled with information about my helpful Credit Card Rating System in a five-part series.

 

cash-rewards--card-system
The traffic signal is the primary visual for this blog series. This image is from Pixabay.
A CREDIT CARD RATING SYSTEM BLOG SERIES
A Credit Card Rating System Introduction

The Rating System Used for Cash Back Credit Cards (Series Part 2 – June 2019)

Excellent Cash Reward Cards (Part 3 – June 2019)

Mixed Cash Reward Credit Card Benefits (Part 4 – June 2019)

Risky Cash Reward Credit Cards (Part 5-June 2019)

 

 

CREDIT NETWORK CARDS

To begin with, there are four networks or ‘major’ Credit Cards. In fact, they are the pillars of the credit card world. Specifically, the first two listed have no bank affiliations. Within them, Discover has the most international acceptance. Then the second two partner with large banks. These cards networks are:

1. AMERICAN EXPRESS (AMEX)

2. DISCOVER

3. MASTERCARD

4. VISA

credit card types
There are four major credit card types or networks: American Express, Discover Cards, VISA, and MasterCard. Image from Cardrates.com

 

SECOND TYPE: CO-BRANDED STORE CREDIT CARDS

Store Credit Cards
Store Credit Cards image from rewardscreditcards.org
Next are the store credit cards. There is a significant difference between them and the major network credit cards category. That is their tendency to be backed by smaller banks and their primary function which is to provide no-interest payment plans for making large purchases (hundreds to thousands of dollars) at major retail stores.

EXPLANATION OF CO-BRANDED CARDS

Here’s an explanation of why cobranded cards are so valuable to have as part of the ideal mix of the two major types of credit cards.

best store credit cards
The Benefits of Co-Branded Cards in Your Pocket from an unknown source

 

BEST STORE CREDIT CARDS

What banks do these cards cobrand with? Let’s take a look. This section actually has a list of of some of them as well as the bank affiliations they have.

best store credit cards
Best Store Credit Cards according to WalletHub.com

Best Retail Store CC
Best Retail Store Credit Cards and the banks that cobrand them. Enlargment of above image

 

BANKS THAT COBRAND THE BEST STORE CREDIT CARDS

According to WalletHub.com, this is a list of the banks that cobrand the best store credit cards.
Amazon.com Store Card-Synchrony Bank
Costco Anywhere-Citibank
Target-TD Bank
TJX Store Card-Synchrony Bank
Kohl’s Credit Card-Capital One
Fingerhut Credit Account-WebBank

 

MORE ABOUT THE BANKS THAT COBRAND STORE CREDIT CARDS

Synchrony Bank Cards
Many stores are cobranded by Synchrony Bank to offer a huge variety of choices
Synchrony Bank

Synchrony Bank specializes in cobranded credit cards. Offering cards that are tailored to particular customers, they have credit cards for store brands, gas stations and more.

“Most are offered with no annual fee and some have excellent rewards available. Synchrony Bank credit cards can be a good choice if you’d like to earn and redeem rewards with a particular brand.” From Synchrony Cards report by US News

 

Although the following also cobranded with the top retail banks, they will not be gone into in detail at this point. With one exception, Comenity bank which cobrands with 91 retailers will be explored in detail after the list of the other four top cobranding banks.
Citibank
TD Bank
Capital One
WebBank

Comenity Bank
Comenity Bank
91 Comenity Bank partners with retail credit cards from UpgradedPoints.com
Comenity Bank cogrand
Comenity Bank cobrands with many store credit cards with fleible benefits, quote from upgradedpoints.com

 

WHAT’S NEXT IN PART TWO

The following issues will be explored in Part Two of this topic, Different Types of Credit Cards And Their Best Uses. Why get network cards? Why get store brand cards? Secured versus unsecured credit cards.

 

COMMENTS AND QUESTIONS
comment box sample only

This is only a SAMPLE of the comment box that can be found and filled in at the bottom of this page as well as each blog post page.


Readers are welcome to comment on this blog post by scrolling down to the VERY bottom of the page. That is where you will find the comment form where the words ‘start the discussion’ are. Questions are also welcome. But it is best to contact me for Q&A on The Credit Card Maven Facebook Page.

 

SOURCES & RESOURCES

Types of Credit Cards from Card Rates

International Credit Card Acceptance from Nerd Wallet

2019’s Best Store Credit Cards

Top Store Credit Cards

Synchrony bank sponsored Credit Cards from USNews.com

Comenity Bank Store Credit Cards

The 10 Worst Store Credit Cards

From thebalance.com, store credit cards are different from credit cards

What Co-branded Cards Are

Credit Card Issuers versus Networks from Credit Card Insider

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