There are several types of credit cards available in India. The type of credit card is decided based on the benefits and rewards they offer on a specific category and spending requirements.
For example – If you love to do shopping online, then a “Shopping Credit Card” is best for you. You earn discounts, cashback, and rewards on these types of credit cards. Suppose you are a frequent traveler you can benefit a lot from a Travel credit card. These types of credit cards help you to earn air miles, access to airport lounges, etc. From the above examples, you must have understood that for specific requirements and usage, Credit Card Company offers a specific category of credit card. Too many credit card options create anxiety and you may end up taking wrong decision.
To help you out, I’ve compiled some basic explanations of credit cards, as well as types of credit cards and usage. You can select the type of credit card based on your requirements and usage.
There are various options for cash. Credit card is one of them. Credit card is a plastic money that makes life very simple. You can use a credit card to buy goods and services on credit. You need to return this money every month or at the latest before interest-free credit period else you need to pay interest on your outstanding balance. After understanding basics of credit cards let’s take a look at the types of credit cards available in India.
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15 Types of Credit Cards in India and Usage
Business Credit Cards
Business Cards are designed for businessmen and corporates. It is one of the fastest ways to get finance to run your business. These types of cards is also known as corporate credit cards. Business credit card offers benefits such as expense monitoring and control, insurance, business saving plans, lucrative travel and accommodation deals, higher credit limit and advanced facilities. Few best credit card in this category is the SBI Corporate Platinum card, Business Money Back HDFC Card, and My Business Credit card from Axis Bank.
Balance Transfer Credit Cards
Balance Transfer credit cards or facility allows cardholders to transfer existing outstanding balances from one credit card to another. So, if you are worrying about massive credit card dues you can use these types of credit card facilities. The bank charges normal processing fees for balance transfers. Most of the balance transfer cards do not charge interest rates for the first three months.The few recommended banks for opting balance credit card/facility are ICICI, SBI, and Standard Chartered.
Cashback Credit Cards
Everyone likes to earn more money if you are one of them you should try a Cashback Credit Card. Cashback Credit cards allow you to earn money by spending money. The cashback amount and rewards depend on the issuer. The best Cash Back Credit Cards are the Citibank Cash Back Credit Card and Standard Chartered Manhattan Platinum Credit Card.
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Co-branded Credit Cards
Co-branded credit cards are offered by banks in association with a retail brand, online e-commerce website, or travel aggregator. This card is specially designed to offer privileges associated with co-brand. If you are married to a specific brand you can plan to opt for this type of card. A few examples of co-branded credit cards are the Yatra SBI Credit Card, IRCTC SBI Platinum Credit Card, and HDFC Snapdeal Credit Card.
Credit Cards for Women
Few Credit cards are exclusively designed for women. These credit cards mainly focus on shopping rewards, and cash back as women are fond of doing extensive shopping. Apart from that, this card also offers extra benefits such as shopping vouchers, surcharge waivers, insurance, etc. A few examples of credit card for women are HDFC Bank Solitaire – Premium Women’s Credit Card, Citibank Rewards credit card, and ICICI Bank Coral card.
Credit Cards for Online Shopping
If you are fond of shopping you can surely go for the following best credit card for online shopping in India. This type of credit card is designed to offer online shopping benefits. You can avail discounts, e-vouchers, and options for shopping on EMI via these types of cards. A few popular online shopping cards are SBI Simply Click and Axis Bank Buzz credit card.
Classic Credit Cards
The main features of Classic Credit Card are global acceptance, cash advance, interest-free credit period, supplementary card benefit, card loss insurance, and dedicated customer support. Few examples of classic credit cards is the IOB Classic Credit card, Indian Bank Global Classic Credit Card, and ICICI Bank British Airways Classic Credit Card.
Entertainment Credit Cards
If you are spending a lot of money on entertainment such as movies, dramas, shows and events you can opt for an entertainment card. This type of card is mainly designed to offer amazing entrainment benefits. It also offers extra benefits such as reward points and discounts on dining. Best Entertainment credit cards are the HDFC Titanium Times Card and Kotak PVR Gold Credit Card.
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Fuel Credit Cards
Fuel Credit Cards are specially designed to offer benefits on fuel including discounts, cashback, and surcharge waivers. You can make use of a fuel credit card and bring down the cost of fuel expense from the household budget. If you spend heavily on petrol and diesel you can use this card. A few recommended fuel credit cards are Standard Chartered Super Value Titanium Card, ICICI Bank HPCL Coral American Express Credit Card, and Indian Oil Citi Platinum Credit Card.
Life Style Credit Cards
Life Style Credit Card as the name suggest is a credit card that offers benefits on changing lifestyle and income of cardholder. These type of cards offers shopping, dining, travel, and other exclusive benefits on lifestyle. One such card is the Axis Bank Signature Credit card with Lifestyle benefits.
Prepaid Credit Card
A prepaid credit card as the name indicates is a preloaded credit card with a specific amount. There are two types of credit cards in the prepaid category namely domestic currency and forex credit cards. A prepaid card is as good as a debit card. You need not worry about clearing dues and interest rates as usage is allowed only based on money deposited by you.
Premium Credit Cards
A premium credit card as the name suggests, is a credit card for premium customers. These types of cards are designed to provide extraordinary premium services such as club membership, concierge services, dining privileges, etc. High income and high spending are requirements for premium credit cards. If you have high income level and capacity to spend. The best premium credit cards are the HDFC Regalia Credit Card and Citi Prestige Credit Card.
Students Credit Cards
A student credit card are card that is offered to students at the college level. There are very few banks that offer student credit cards in India. The main requirement of this credit card is students should be above 18 years of age. This type of credit card is offered against employment documents, Income tax returns or income proof.
Secured Credit Cards
A Secured Credit Card is a card offered by the bank against a fixed deposit. This deposit serves as a credit limit for the cardholder. If you don’t have a good credit history and you are facing problems getting a credit card you can use this option. In this card if the cardholder default on payments, the bank can deduct the amount from the deposit.
Travel Credit Cards
Travel Credit card is best suitable for the person who is traveling frequently. The travel credit card offers multiple benefits like air miles, free access to the airport lounge, benefit on accommodation, travel insurance benefits, etc. A few recommended travel credit cards are Citibank PremierMiles Credit Card, American Express Platinum Travel and JetPrivilege HDFC Bank World Credit Card.
The above list includes the most popular credit card types. However, there are a few other credit card types and names that are defined by banks such as contactless credit cards, lifetime free credit cards, virtual credit cards, credit cards for low-income groups, gold credit cards, Platinum credit cards, signature credit cards, etc.
A credit card can be a very good tool that provides multiple benefits. However, you have to use credit cards wisely. Excessive usage of credit cards leads to a huge financial burden. If you decide to use a credit card and trying to find the best credit card here are few important credit card tips for selection and usage.
- Know your payment habits and spending habits before making a selection of a credit card.
- Compare features and get information about annual fees, interest rate applicable, and Interest-free grace period before taking a credit card.
- Get complete information about credit limits and interest-free credit days before opting credit card.
- It is advisable not to keep multiple credit cards.
- Always choose a credit card that has excellent customer care support.
- Keep track of all your purchases. If possible, maintain all receipts of purchase.
- Don’t get carried away by doing impulsive shopping.
- Use the credit card for needs not wants.
- Pay off your bill every month. If possible set up Auto Debit Facility
- Take maximum benefit of rewards and cashback.
I hope the above credit card tips and types of credit cards help you in making a selection of credit cards. If you are still facing issues in the selection of credit cards post your query in the comment section given below.