Different types of credit cards

Written byEmily Tye

Updated:Apr 30, 2026

5 min read

The main types of credit cards available in the UK include balance transfer, 0% purchase, rewards, travel, credit builder, student, virtual, and money transfer cards. Each is designed for a different financial purpose. Which one makes sense for you depends on what you want to use it for and where your credit score stands.

Balance transfer credit cards

A balance transfer card lets you move existing debt from one or more credit cards onto a new card. Many offer a 0% interest period on the transferred balance, giving you a fixed window to pay it off without more interest building up.

Most balance transfer cards charge a one-off fee to move the debt, calculated as a percentage of the amount transferred. Once the promotional period ends, the standard interest rate applies, so it helps to have a plan to clear the balance before then.

These cards are most useful if you already have credit card debt and want to reduce what you pay in interest while you clear it. Read more about balance transfer cards.

0% purchase credit cards

A 0% purchase card gives you an interest-free period on new purchases. During this window, you can spread the cost of what you buy without paying any interest on top.

The 0% period has a fixed end date. After that, any remaining balance will start accruing interest at the card's standard rate. If you are using this card for a large purchase, keeping track of when the promotional period ends is important.

These cards work well for planned purchases where you want to pay in instalments without the added cost of interest, such as appliances, furniture, or home improvements.

Rewards credit cards

Rewards cards give you something back each time you spend on the card. The reward can take different forms: cashback credited to your account, points redeemable with specific retailers, or air miles for travel.

These cards work best for people who pay their balance in full each month. If you carry a balance, the interest charges will usually outweigh whatever you earn in rewards.

Rewards cards typically require a stronger credit history than most other card types, so eligibility is not guaranteed for everyone.

Travel credit cards

Travel cards are designed for spending in foreign currencies. Standard credit cards may add a foreign transaction fee on purchases made abroad. Travel cards remove or significantly reduce this charge, making them cheaper to use outside the UK.

Some travel cards also include benefits such as travel insurance or airport lounge access, though these vary by card.

If you travel regularly or have a trip planned, a travel credit card can save you a meaningful amount compared to using a standard card overseas. See our guide to travel credit cards.

Credit builder credit cards

Credit builder cards are designed for people with a limited credit history or a poor credit score. They typically have lower credit limits and higher interest rates than standard cards, which reflects the greater risk to the lender.

Used consistently over time, a credit builder card can help establish or improve your credit profile. The key is making payments on time each month and keeping your balance low relative to your credit limit.

Find out more about credit cards for building credit.

Student credit cards

Student cards are aimed at people in full-time higher education who may not have an established credit history or a regular income. They tend to have lower credit limits and are more accessible to applicants who are new to credit.

Like credit builder cards, a student card used responsibly is a practical way to start building a credit history. Paying your balance off regularly and staying within your limit are the habits that make the difference. Learn more about student credit cards.

Virtual credit cards

A virtual credit card works the same way as a standard card but without a physical card. It gives you a card number, expiry date, and security code for online purchases, and works with digital wallets such as Apple Pay and Google Pay for contactless payments.

Virtual cards are often available immediately after approval, which can be useful if you want to start using the card straight away. Find out more about virtual credit cards.

Money transfer credit cards

A money transfer card lets you send money directly from your credit card into a bank account. This is different from a balance transfer card, which moves debt between credit cards.

Money transfer cards are typically used to pay off an expensive overdraft, or to cover a cost where paying by card is not an option. Like balance transfer cards, they usually offer a promotional low or 0% interest period on the amount transferred, and most charge a one-off transfer fee.

What type of credit card should I get?

The right card depends on what you need it to do.

It’s also worth understanding how credit card interest works and what APR means on a credit card before applying, as both affect the total cost of borrowing.

What protection do I get with a credit card?

One protection that applies across all UK credit cards is Section 75 of the Consumer Credit Act 1974. If you use a credit card to pay for something that costs between £100 and £30,000, your card provider is jointly and severally liable with the retailer if something goes wrong. 

In practice, this means you can claim a full refund directly from your card provider if a company goes bust or goods or services are not delivered as promised. 

This protection applies regardless of which type of credit card you hold.

FAQs

This blog is for informational purposes only and does not constitute financial advice. Please speak to a qualified financial adviser before making financial decisions.