Types of Credit Card – What are the Different Types of Credit Cards in India?
Credit cards that are designed by credit card companies do not all have the same features. Each has its own set of features and advantages. They are made with the individual’s needs and spending habits in mind. An entertainment credit card, for example, would suit a person who spends more on entertainment activities such as movies, clubs, and so on than the other categories. We can categorise credit cards into the following categories in general, based on different spending habits.
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10 Best ICICI Credit Cards – Annual Fees, Types, Features & Review
Types of Credit Cards in India
There are types of credit cards available today to meet the needs of customers, ranging from travel credit cards to shopping credit cards. Today’s credit cards include secured credit cards, rewards credit cards, fuel credit cards, co-branded credit cards, and cashback credit cards, to name a few.
For business operations, every business entity will have to spend a significant amount of money. Using a business credit card for all business purchases, such as machinery, inventory, and so on, can help you earn a lot of reward points, which can help you save money. Furthermore, a business credit card makes it easier to keep track of all expenses.
These cards are made for business use only. This is to make sure that business and personal expenses are kept separate. It’s true that even though you can get a business card, you need a good credit history to get one. Because the card company thinks the applicant is responsible for paying their bills, this is why.
Cashback cards, like reward points credit cards, help you save money on all of your purchases. On a variety of purchases, such as dining, ticket booking, and hotel booking, you can earn a certain percentage of cashback. You can also use the cashback points to reduce the amount you pay on your credit card bill each month.
Commuting to work from home is unavoidable, and you’ll almost certainly be spending money on fuel. Because of its significance, the majority of credit card companies have created fuel credit cards that help you save money on gas. On these cards, you can get a fuel surcharge waiver of up to 3%. In addition, this card comes with a slew of other perks.
Lifestyle credit cards are typically high-end credit cards that are best suited for the wealthy who frequently dine out, shop at high-end stores, and so on. These credit cards offer more discounts, higher reward points, and complimentary concierge services. When compared to other credit cards, the annual fee is higher because the benefits are greater.
One of the appealing features of credit cards is reward points, which has become yet another reason for many people to use one. Most credit card companies have responded to customer demand by introducing credit cards that allow you to earn more reward points that can be redeemed for a variety of gift items.
To be approved for a credit card, a person must have a high income and a good credit score in some cases. If you have a Fixed Deposit and don’t have both, you can get a secured credit card quickly. This type of credit card has a credit limit of up to 80% of the amount of the FD.
Customers who spend more of their money on clothing, jewellery, groceries, gadgets, and other similar purchases are targeted. There are also credit cards designed specifically for online shopping that offer special discounts on specific e-commerce sites. This credit card is ideal for housewives who must manage all of their grocery and other retail purchases.
There are credit cards designed specifically for students pursuing higher education. The income of the father or guardian is used to determine eligibility for this card. This card can be used to buy laptops, gadgets, stationery, and other items for students.
Students are the main users of this type of card. People who get a credit card think about the fact that many students don’t have a credit history. The requirements for getting a student credit card are less strict than for full-fledged cards. Interest rates are also less for this one, too.
Individuals who travel frequently may need to purchase plane tickets, hotel reservations, and cash for international purchases. Cardholders with travel credit cards can do all of this and pay for it later. The benefits of having a travel credit card include free airport lounge access and a large number of reward points.
The number of working women in the country is increasing. Some credit card companies have created exclusive credit cards for women, recognising the importance of providing financial freedom to women. This credit card can be used by women who enjoy shopping to get special offers and discounts.
Contactless credit cards are equipped with a one-of-a-kind payment technology that allows cardholders to make payments at point-of-sale terminals by simply tapping their cards. Customers do not need to enter a PIN number to make purchases with these contactless transactions, and they are extremely secure. Discounts, cash rewards, entertainment benefits, reward points, welcome gift, lounge access, concierge service, insurance policy, and other perks are available with these cards.
Banks offer co-branded credit cards in collaboration with a retail brand, a travel aggregator, or another financial institution. Both parties’ benefits are combined into a co-branded credit card, allowing customers to get double the value from a single card.
The most successful co-branded credit cards are those issued in conjunction with retail merchants, because banks can easily expand their customer base by leveraging the merchant’s customer base.
Co-branded credit cards may offer rebates, discounts, and offers from a retail partner brand, sporting benefits from a sports league, ticket booking privileges from airline and railway partners, holiday and hotel accommodation privileges from travel aggregators and premier hotel chains, and other benefits, depending on the tie-up.
Despite the fact that these credit cards include features from two major companies, there are no restrictions on how they can be used.
If you use a co-branded card from a bank with a brand on it, you get special discounts and deals when you do business with that brand. In spite of the fact that you can do other things, they won’t be very profitable. In general, this strategy is used to grow the number of people who buy the brand.
Entertainment credit cards are known for their fantastic entertainment offers, such as discounts, cashback, or buy one, get one free deals on movie ticket bookings, events, and shows, among other things. These cards also provide cardholders with lifestyle, golf, dining, shopping, and travel benefits. Customers can also earn rewards points on these transactions, which they can redeem for movie tickets, travel reservations, or gift cards.
Most banks offer a “Premium” or “Signature” credit card with a slew of lifestyle benefits. Premium credit cards offer unique benefits such as flexible spending limits, premium airport lounge access, concierge services, complimentary insurance, rewards programmes, global assistance services, chartered yacht and flight services, surcharge waivers, retail, travel, and hotel accommodation vouchers, and so on.
Rewards earned with these cards can be redeemed in a variety of ways. Some of these cards waive the annual fee if cardholders spend a certain amount each year.
Premium credit cards are only for a few people. It gives you free access to golf clubs, airport lounges, concierge service, and insurance, so you don’t have to pay for any of them.
It may also come with travel and hotel coupons that are free. Some cards also have a personal relationship manager who can help the cardholder manage their money and other things. This card isn’t for everyone.
Prepaid credit cards allow cardholders to load a predetermined amount of money onto the card and use it to make purchases. Despite the fact that these cards do not provide a line of credit, customers can take advantage of the majority of the benefits offered by other credit cards. The outstanding balance is the amount a customer leaves on their prepaid card after completing a transaction.
A pre-paid card is one that you have to put money into before you can use it. Funds are taken from the card’s balance when you use the card to make a payment. You won’t have to pay a fee or meet a payment deadline with this card.
A gold credit card can be obtained from any bank in India by individuals with a higher income. A good credit score is required for any type of gold credit card application.
Silver credit cards can be used by anyone who makes a small amount of money and has worked for at least 4 to 5 years. People who earn a salary can get this kind of credit card if they have a good credit history. These cards have a low membership fee and there is no interest for the first 6 to 9 months, when you move money from one card to another.
Classic credit cards have features like global acceptance, revolving credit, cash advance, interest-free credit, rewards, supplementary cards, insurance, and a dedicated 24/7 customer care helpdesk for customers. They also have a dedicated 24/7 customer care helpdesk for customers. They don’t charge annual fees or fees to join, and they have low interest rates.
Titanium credit cards are high-end cards that come with a lot of extra privileges and benefits, making them more valuable. It is the Titanium Rewards programme that is the most important thing about a Titanium credit card. This rewards programme includes things like accruing points, redeeming them for gifts and air miles, getting cash back, and more.
Other benefits that come with a Titanium credit card include surcharge waivers, revolving credit, interest-free credit, annual fee refunds, insurance, welcome gifts in the form of vouchers from top retail brands, add-on cards, wellness and beauty offers, lifestyle and dining benefits, and more, as well as many other benefits.
There are many benefits and privileges that come with having a platinum credit card, which makes it one of the most popular credit cards and one that many people own because of this. The benefits include lifestyle, dining, shopping, and entertainment offers, as well as other things. People who get Platinum credit cards pay a little more for their cards each year, when they join, and when they renew.
Welcome package: Every Platinum credit card comes with a special welcome package that includes gift cards from retail brands, annual spend rewards, cashback offers, Priority Pass membership with access to premium airport lounges, renewal gift cards, global lifestyle and golfing privileges, easy cash withdrawals, fuel surcharge waiver, add-on cards for your family, emergency card replacement services, and more.
Every Platinum credit card comes with a special welcome package. Depending on the financial institution they are with, platinum cardholders may also get special privileges and deals with every card they get.
FAQs on Different Types of Credit Cards in India
How can I earn and use reward points on my credit card?
You will earn reward points every time you swipe your credit card. You can always redeem your reward points for merchandise, direct statement credit, or gift cards. A few credit cards will give you extra rewards on your grocery purchases, while others will give you more rewards when you book a flight or a hotel room.
What is the meaning of a ‘secured’ credit card?
A secured credit card is one that is issued in your name and is secured by an asset (example: Fixed Deposit). If you are not eligible for an unsecured credit card, this could be a good place to start. Many of India’s top banks offer secured cards in exchange for fixed deposits.
Can I withdraw cash from an ATM using a credit card?
Is it possible to withdraw cash from an ATM using a credit card? Yes, and the process is called a “cash advance.” There is a limit to how much you can withdraw from your credit card. Additional fees and a higher interest rate apply to these types of withdrawals in comparison to those made with a debit card at an ATM.
Do all credit cards come with a joining fee and annual fee?
Not all credit cards charge an annual fee or a fee to sign up for a credit card account. There are a few basic credit cards that do not charge an annual fee or a fee to open an account. A no annual fee or joining fee credit card offers fewer perks than an annual fee or joining fee credit card.
