A credit card is a great financial tool. It can be more convenient to use and carry than cash, and it offers valuable consumer protections under federal law. At the same time, it's a big responsibility. If you don't use it carefully, you may owe more than you can repay, damage your credit rating, and create credit problems for yourself that can be difficult to fix. That is why it is very important to understand the different types of credit cards. Unsecured Credit Cards
Unsecured credit cards are usually aimed towards people with good credit, although there are a lot of unsecured credit cards for people with 'Less Than Perfect Credit'. The good unsecured credit cards generally have no annual fees and usually have lower interest rates. Where as the less than perfect unsecured credit cards generally have higher interest rates, annual fees, membership fees, and sometimes even processing fees. Partially Secured Credit Cards
A patially secured credit card is a mixture of an unsecured credit card and a secured credit card. All partially secured credit cards require a deposit that grows interest but some either double or triple your initial security deposit. For example a partially secured credit card that has a deposit of $49 and credit limit as high as $400, with no application fee. Definitely worth the $49. Partially secured credit cards are definitely a good deal for people wanting to rebuild thier credit. Secured Credit Cards
These credit cards are usaually aimed toward people with less than perfect credit. A lot of people don't like secured credit cards because it requires a deposit. What people don't realize is that an secured credit card is better for people with less than perfect credit because you send them a deposit and usually within 6 months to a year they are re-evaluated for unsecured status. A lot of the time you don't get charged those outrageous start up fees. Secured cards generally carry an annual fee but some credit cards will even pay you interest on your deposit. The interest rates vary, depending on how bad your credit is. Debit Cards / Stored Value Cards
These cards are usaually aimed toward people with poor credit. These cards are better than a secured card. They do not require you to put up a security deposit in order to obtain one. There are no interest charges usually associated with these cards. Most have guaranteed approvals, no finance charges, no security deposits, no credit checks, and no bank accounts required. You simply load the card with the amount you want to spend. | 
