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.
The traffic signal is the primary visual for this blog series. This image is from Pixabay.
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
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 image from rewardscreditcards.orgNext 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.
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 according to WalletHub.com
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
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
91 Comenity Bank partners with retail credit cards from UpgradedPoints.comComenity 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
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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.
