- Date : 18/06/2021
- Read: 5 mins
Here are the different types of credit cards available in India and how you can choose the right one.
A credit card can be a handy financial tool and help you take care of various expenses. Not only does it offer a credit limit for basic purchases, it also provides other benefits such as reward points, air miles, cashback deals etc. But not many people know that there are different types of credit cards in the market with distinct features and uses. So, before you go ahead and pick one, make sure you understand the differences and benefits.
Types of credit cards in India
There are many types of credit cards you can choose from:
1. Corporate or business credit cards: The eligibility criteria for these cards is different from other types of credits cards and can only be availed of by companies, partnerships, banks, businesses, etc. A business credit card can be used by a company to cover its expenditure. It can also be given to an employee travelling on a work trip with a credit limit that they can use for their expenses. Check these Dos and Don’ts of Coporate credit cards.
2. Travel credit cards: These are ideal for frequent travellers. A travel credit card offers many discounts and deals with airlines, hotels, hospitality and travel websites, etc. They offer rewards and air miles from time to time that can be redeemed when you travel.
3. Lifestyle credit cards: These cards can come in handy for people who like to spend on lifestyle purchases, such as dining out, shopping for apparel or home improvement, etc. With numerous cashback deals and discount offers, lifestyle credit cards help save a lot of money, yet let you keep up with the increasing lifestyle demands of today.
4. Prepaid credit cards: Prepaid cards are a combination of a debit and a credit card. There is a fixed limit similar to a debit card within which you are allowed to spend, but you also get to enjoy the benefits of a credit card, such as reward points, cashback, and more. Another advantage of these cards is that there is no interest involved. Moreover, they can ideal be for people with a low credit score as the spending limit is fixed.
5. Credit cards for women: A lot of credit cards target women with special discounts on lifestyle purchases, entertainment expenses, grocery shopping, travel, and more. These cards may offer attractive deals only for women and the joining fee is often lower when compared with other cards. Why a women special credit card makes a great gift?
6. Entertainment credit cards: These cards offer special discounts and deals for entertainment expenses. This includes movie tickets, travel, concert tickets, golf club memberships, etc. Some common deals include one-plus-one on tickets, discount on online bookings, etc.
7. Fuel credit cards: As the name suggests, these cards offer discounts on fuel – petrol, diesel, and even CNG. A fuel credit card can be ideal for frequent travellers, taxi drivers, etc. The card comes with cashback deals with leading petrol pumps in the country.
8. Exclusive or premium credit cards: These cards are not meant for everyone and can only be bought by a select few. The eligibility criteria include having a high income and a good credit score. Such cards offer access to airport lounges, fine-dining restaurants, exclusive clubs, etc.
Related: How to protect your credit reports from fraud?
How to get credit card in India based on your needs
Here are some things to keep in mind while applying for a credit card in India:
- Pay attention to your requirements: A travel credit card is appealing but it can only be useful for those who travel a lot. If you rarely take a trip, the card will be of little or no use for you. Hence, pay attention to your requirements and select a card accordingly.
- Analyse your reasons to get one: A credit card can be used for various reasons. For instance, balance transfer credit cards help accumulate all your debt under a low interest credit card. Some people may take a credit card to improve their credit score too.
- Look at the fees involved: Credit cards come with annual fees, joining fee, late payment fees, interest charges, etc. These can differ from one provider to another. Select a card after carefully looking at all the costs involved. The discounts can seem appealing but if you end up paying more than what you get in return, you will be losing money.
Related: What are contactless credit cards and how do they work?
Last words
Credit cards can be very effective to cover routine expenses as well as indulge in certain luxuries from time to time. They also have many practical benefits, such as balance transfers, achieving a high CIBIL score, and helping you become financially disciplined. So, make sure you choose a card that meets your needs and requirements. Needless to say, look for a trustworthy bank or credit card provider to ensure safety. Learn how to take charge of your credit score.
Also, check out the 5 best travel credit cards in India right now.
A credit card can be a handy financial tool and help you take care of various expenses. Not only does it offer a credit limit for basic purchases, it also provides other benefits such as reward points, air miles, cashback deals etc. But not many people know that there are different types of credit cards in the market with distinct features and uses. So, before you go ahead and pick one, make sure you understand the differences and benefits.
Types of credit cards in India
There are many types of credit cards you can choose from:
1. Corporate or business credit cards: The eligibility criteria for these cards is different from other types of credits cards and can only be availed of by companies, partnerships, banks, businesses, etc. A business credit card can be used by a company to cover its expenditure. It can also be given to an employee travelling on a work trip with a credit limit that they can use for their expenses. Check these Dos and Don’ts of Coporate credit cards.
2. Travel credit cards: These are ideal for frequent travellers. A travel credit card offers many discounts and deals with airlines, hotels, hospitality and travel websites, etc. They offer rewards and air miles from time to time that can be redeemed when you travel.
3. Lifestyle credit cards: These cards can come in handy for people who like to spend on lifestyle purchases, such as dining out, shopping for apparel or home improvement, etc. With numerous cashback deals and discount offers, lifestyle credit cards help save a lot of money, yet let you keep up with the increasing lifestyle demands of today.
4. Prepaid credit cards: Prepaid cards are a combination of a debit and a credit card. There is a fixed limit similar to a debit card within which you are allowed to spend, but you also get to enjoy the benefits of a credit card, such as reward points, cashback, and more. Another advantage of these cards is that there is no interest involved. Moreover, they can ideal be for people with a low credit score as the spending limit is fixed.
5. Credit cards for women: A lot of credit cards target women with special discounts on lifestyle purchases, entertainment expenses, grocery shopping, travel, and more. These cards may offer attractive deals only for women and the joining fee is often lower when compared with other cards. Why a women special credit card makes a great gift?
6. Entertainment credit cards: These cards offer special discounts and deals for entertainment expenses. This includes movie tickets, travel, concert tickets, golf club memberships, etc. Some common deals include one-plus-one on tickets, discount on online bookings, etc.
7. Fuel credit cards: As the name suggests, these cards offer discounts on fuel – petrol, diesel, and even CNG. A fuel credit card can be ideal for frequent travellers, taxi drivers, etc. The card comes with cashback deals with leading petrol pumps in the country.
8. Exclusive or premium credit cards: These cards are not meant for everyone and can only be bought by a select few. The eligibility criteria include having a high income and a good credit score. Such cards offer access to airport lounges, fine-dining restaurants, exclusive clubs, etc.
Related: How to protect your credit reports from fraud?
How to get credit card in India based on your needs
Here are some things to keep in mind while applying for a credit card in India:
- Pay attention to your requirements: A travel credit card is appealing but it can only be useful for those who travel a lot. If you rarely take a trip, the card will be of little or no use for you. Hence, pay attention to your requirements and select a card accordingly.
- Analyse your reasons to get one: A credit card can be used for various reasons. For instance, balance transfer credit cards help accumulate all your debt under a low interest credit card. Some people may take a credit card to improve their credit score too.
- Look at the fees involved: Credit cards come with annual fees, joining fee, late payment fees, interest charges, etc. These can differ from one provider to another. Select a card after carefully looking at all the costs involved. The discounts can seem appealing but if you end up paying more than what you get in return, you will be losing money.
Related: What are contactless credit cards and how do they work?
Last words
Credit cards can be very effective to cover routine expenses as well as indulge in certain luxuries from time to time. They also have many practical benefits, such as balance transfers, achieving a high CIBIL score, and helping you become financially disciplined. So, make sure you choose a card that meets your needs and requirements. Needless to say, look for a trustworthy bank or credit card provider to ensure safety. Learn how to take charge of your credit score.
Also, check out the 5 best travel credit cards in India right now.
