Whether you’re looking for your very first credit card, a new card to supplement your existing accounts, or a new card to take the place of an existing one, choosing a credit card isn’t always easy. You’ll be presented with offers for several types of credit cards, and you’ll have to decide which card is right for you.

Here are descriptions of the basic types of credit cards you’re likely to come across, to help you make a better decision about which card to apply for.

1. Standard Credit Cards

A standard credit card can come from any number of banks, but will be associated with one of the major credit card brands–Visa, MasterCard, or American Express. Terms and credit limits can vary widely, and you’ll even have to choose between sub-groups such as low interest credit cards versus low fee cards. No matter which type of standard credit card you choose, you can rest assured that you can use it pretty much everywhere credit cards are accepted (especially if you go with a Visa or MasterCard, which are more widely accepted than American Express cards).

2. Balance Transfer Credit Cards

A balance transfer credit card (like the Citibank Clear Platinum credit card) offers a specific perk of a low interest rate on balance transfers (often only for an introductory period). Other than the special rates for transferring your balance from your old card to the new card (usually to save on interest), balance transfer cards work just like standard credit cards.

3. Rewards Cards

Rewards cards also work just like standard credit cards. They generally fall under the umbrella of Visa, MasterCard, and American Express cards and can be used for in-person, telephone, and online purchases. The only real difference is that you’ll earn rewards points based on the amount of money you spend (or repay) while using your card. Rewards can come in many forms. For example, the Commonwealth Bank Awards card gives you the option to receive cash back, while the Earth credit card lets you earn Qantas frequent flyer points. The rewards programmes may come at a price though, with higher annual fees than other types of credit cards.

4. Store Credit Cards

While some stores do offer standard Visa or MasterCard credit cards with their own branding, in a traditional sense a store credit card (or charge card) is a card that can only be used to make purchases with that specific company. Historically, store credit cards have been easier to get than some standard credit cards, making them a top choice as many customers’ first credit cards.

5. Business Credit Cards

Business credit cards are another branch of standard credit cards. While standard cards are issued for personal use, business credit cards are specifically offered to be used by businesses or the self-employed for business expenses. Because business credit card applications can be based on the company’s financial situation rather than solely that of an individual (but not always), credit limits may be higher (such as the American Express Business card, which features no pre-set spending limit). Business credit cards can be used for anything from booking business trips to covering start-up costs for a new business.

Understanding the types of credit cards is the first step in choosing a new credit card of your own. By narrowing down your options by choosing the best broad category for your needs, you can minimise the number of credit cards you have to evaluate in more detail and compare side-by-side with other cards. You’ll not only increase your chances of finding a credit card that’s a perfect fit, but you’ll save yourself a lot of time in the process.