Record types allow you to offer different business processes, picklist values, and page layouts to different users based on their profiles. 

Record types can be used in various ways, for example:

• Create record types for opportunities to differentiate your regular sales deals from your professional services engagements and offer different picklist values for each.
• Create record types for cases to display different page layouts for your customer support cases versus your billing cases.

If your requirement is just for reporting, then use a Picklist Field with the name “Type”. Record Type should be used only for the following purposes

1. Different Processes( Sales Process for Opportunity, Lead Process for Lead, Support Process for Case, etc).

2. Different Page layout with buttons and fields for each Record Type.

3. Different Picklist values for each Record Type.