10 Different Types of Credit Cards
In India, there are numerous banks that offer various Types of Credit Cards. The cards are categorised depending on the incentives and perks they provide, as well as the applicants’ income and spending limitations. Customers can choose any credit card that offers a variety of perks and is a good fit for their needs. For example, if you travel frequently, a travel card can help you earn air miles, gain access to airport lounges, and so on. Credit cards are available in India through the following payment networks: Visa, MasterCard, American Express, Diner’s Club, etc
Fuel Credit Cards
Fuel credit cards provide perks on all fuel purchases made by cardholders. Customers can save money on refuelling with this card because it pays rewards and waives fuel surcharges. If fuel transactions are done at specified petrol pumps across India, some banks give expedited rewards points. The earned reward points can be redeemed for a predetermined amount of refuelling. Activation bonuses, entertainment incentives, eating, lodging, and wellness offerings, among other things, are all available as additional benefits.
Auto credit cards have very cheap yearly and joining fees, and daily Metro/train travellers can considerably profit from using them. These cards can be used as a travel cards as well as a regular credit card for shopping and other purchases. These cards come preloaded with a set amount of money as a welcome bonus, and they also have an auto-top-up feature. On top-ups and other transactions, customers can earn rewards points. Annual renewal offers, add-on card options, and surcharge exemptions are all available on some cards.
Contactless Credit Cards
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 merely tapping their cards. Customers do not need to input a PIN number to make purchases with these contactless transactions, and they are incredibly safe. Discounts, cash incentives, entertainment advantages, reward points, welcome gift, lounge access, concierge service, insurance policy, and other perks are available with these cards.
Credit Cards for Women
Some banks have launched credit cards specifically targeted for women to ensure that their female customers receive the most benefits. These credit cards for women are mostly focused on shopping rewards and cashback opportunities. Aside from that, cardholders can obtain bonus reward points, waived fuel surcharges, and insurance, among other benefits. When users use their credit cards to make purchases, they can also earn reward points. Women’s credit cards with great travel advantages are also available.
Travel Credit Cards
Travel credit cards are popular because they provide limitless travel rewards. These cards provide travel perks not only in India but also internationally. To offer travel credit cards, most banks have partnered with airlines or travel agencies. Customers can earn air miles by using this card to make travel purchases. Aside from that, certain travel cards give clients access to airport lounges. Customers can convert their reward points earned on these cards into air miles, which can then be used to book flights and upgrade seats. Hotel and vacation packages, golf packages, dining packages, travel insurance, and other services are available through travel cards.
Cashback Credit Cards
Customers that use cashback credit cards receive cashback on their purchases, which can range from 5% to 20% depending on the expenditure category. Cashback can be earned on a variety of purchases, including bill payments, movie ticket purchases, retail purchases, meal bills, and supermarket purchases. Fuel surcharge exemptions, annual fee reversals, eating and shopping privileges, global acceptance, rewards programme, balance transfers, and other benefits are available with every cashback card.
Co-branded Credit Cards
Banks provide co-branded credit cards in collaboration with a retail brand, a travel aggregator, or another financial institution. Both parties’ perks 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 businesses, because banks can simply extend their customer base by using 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 have features from two major companies, there are no restrictions on how they can be used.
Rewards Credit Cards
Credit cards with rewards programmes are known for providing various incentives for each card purchase. Rewards points can be earned on all retail, internet, and other card purchases. They can also earn reward points as a welcome gift, birthday gift, renewal bonus, and so on. They can also gain points by spending a certain amount of money in a specified amount of time. These reward points can be redeemed for items/services listed in the rewards catalogue, such as cashback, air miles, and travel deals. Some credit cards allow cardholders to pay for their purchases over time.
Business/Corporate Credit Cards
Business credit cards are provided to businesses, corporations, and other financial institutions so that the employer can provide credit cards to their employees while simultaneously managing the card’s finances. Employees cannot use these cards for personal purchases, and they are only valid for the duration of their work with the company. Hotel and travel discounts, company savings plans, cost management, insurance, fuel surcharge waivers, airport lounge access, rewards programmes, cash advances, add-on cards, bill payments, and the ability to convert purchases into monthly instalments are among the benefits given by corporate cards. Companies can also have their corporate name embossed on these credit cards.
Lifestyle Credit Cards
Lifestyle credit cards are created with the applicants’ changing lives and income in mind. Golfing privileges, shopping privileges, dining privileges, travel privileges, and other incentives are all included with most lifestyle credit cards. These cards typically include benefits such as waived annual fees for the first year, cashback on tickets, and insurance discounts, among other things. Customers who use lifestyle credit cards can earn bonus and expedited rewards points on their transactions. The majority of these credit cards are Platinum cards, which provide enhanced travel, shopping, dining, and luxury lifestyle benefits. Axis Bank Signature Credit Card with Lifestyle Benefits, for example.
Entertainment Credit Cards
Entertainment credit cards are recognised for their fantastic entertainment incentives, such as discounts, cashback, or buy one, get one free deal on cinema ticket bookings, concerts, and shows, among other things. These cards also provide cardholders with lifestyle, golf, dining, retail, and travel advantages. Customers can also earn rewards points on these transactions, which they can redeem for cinema tickets, airline reservations, or gift cards.
Premium/Signature Credit Cards
Most banks provide 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, a rewards programme, 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 yearly charge if cardholders spend a particular amount each year.
Prepaid Credit Cards
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 give a line of credit, clients can take advantage of the majority of the benefits offered by other credit cards. The outstanding balance is the amount a consumer leaves on their prepaid card after completing a transaction.
Credit Cards in Gold
A gold credit card can be obtained from any bank in India by individuals with a higher income. A solid credit score is required for any form of gold credit card application. A gold credit card has the following features:
- High cash withdrawal limit
- High credit limit
- Add-on card facility for family members like spouse, parents or children
- Travel insurance
- Cashback offers
- The rewards program and much more
Silver Credit Cards
Anyone with a minimal salary and 4 to 5 years of work experience can apply for a silver credit card. Salaried personnel can easily obtain this form of credit card if they have a strong credit history. These cards offer a low annual fee and no interest is charged on balance transfers for the first 6 to 9 months.
Classic Credit Cards
Global acceptance, revolving credit, cash advances, interest-free credit periods, rewards programmes, supplementary cards, insurance, and a dedicated 24/7 customer support helpdesk are all elements of traditional credit cards. The majority of traditional credit cards have no annual or membership fees and have minimal finance rates.
Titanium Credit Cards
Titanium credit cards are high-end cards that come with a slew of perks and advantages. The Titanium Rewards programme, which is available to consumers, is the most important feature of a Titanium credit card. This rewards programme covers earning points, redeeming them for gifts and flying miles, and receiving cashback offers, among other things. Surcharge waivers, revolving credit, interest-free credit periods, annual fee reversals, insurance, welcome gifts in the form of vouchers from leading retail brands, add-on card facility, wellness and beauty incentives, lifestyle and dining benefits, and more are all included with any Titanium credit card.
Platinum Credit Cards
Because of the numerous benefits and privileges, it provides, the Platinum card is one of the most widely used credit cards. Lifestyle, dining, shopping, and entertainment offers, among other things, are included in the advantages. Platinum cards have a somewhat higher annual, joining, and renewal charge than other types of credit cards.
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 an excellent place to start. Many of India’s biggest banks offer secured cards in exchange for fixed deposits.
Yes, you can use your credit card to withdraw cash from an ATM. This is known as a ‘cash advance.’ Only a portion of your credit limit is available for withdrawal. However, when compared to withdrawing money from an ATM using your debit card, these types of withdrawals will incur additional fees and a higher interest rate.
You will earn reward points every time you swipe your credit card. You can always exchange your reward points for items, a direct statement credit, or gift cards. A few credit cards can give you more benefits on your supermarket purchases, while others will give you more rewards when you book a flight or a hotel room.