Credit cards have revolutionised how you can manage finances by offering convenience and flexibility. That’s not all. They provide instant access to credit, loyalty programs, and special perks. Because of this, different types of credit cards have quickly become indispensable financial instruments.
Financial institutions offer credit cards that cater to a specific spending habit or category and offer curated benefits to elevate your experience. There exists a tailored credit card for you, whether you are
- A seasoned globetrotter searching for maximum travel advantages
- An avid shopper seeking redeemable rewards and cashback
- A small business owner requiring expense management solutions
Given this, understanding the available options is vital for making an informed choice. This guide explores India’s diverse credit card landscape. With it, you can identify options that meet your personal needs, wants, and financial objectives.
Different Types of Credit Cards in India
There is a plethora of options available when it comes to credit cards. Here is a list of some of the most common types of cards available.
Standard Credit Cards
These are among the most prevalent credit card options in the market today. They offer basic features, including predefined limits and monthly statements. You can make both online and offline purchases. These cards may be best for individuals seeking simpler cards with no extensive terms and conditions and fewer rewards.
Rewards Credit Cards
These cards aim to incentivise cardholders by rewarding spends with perks such as reward points that can be accumulated and redeemed. Some of the categories you can use these points on are:
- Merchandise
- Travel bookings
- Gift vouchers
- Instant discount
Some cards even offer bonus points in certain categories, such as dining purchases, groceries, and fuel purchases. This way, you have better chances of reaping additional value from their plan.
Cashback Credit Cards
With these cards, you can get a percentage of the amount spent as cashback. They are popular among people who prefer tangible benefits to reward points. The cashback rates may be flat across purchases, or you may get a higher rate for purchases in certain categories.
Travel Credit Cards
These cards give frequent travellers exclusive travel-related advantages and amenities designed specifically for their needs. Because of this, these cards are ideal companions whether travelling for business or pleasure. The benefits can include:
- Airport lounge access
- Travel insurance coverage
- Air miles rewards
- Hotel discounts
Premium Credit Cards
Premium or lifestyle/luxury cards are designed for individuals seeking exclusive benefits and privileges. These can be higher credit limits and premium services, such as:
- Concierge
- Access to events
- Golf courses and lessons
- Complimentary tickets
Also, they may even provide faster reward point accumulation or cashback reward rates, making them highly desired by those looking for more rewards.
Credit Card Against Fixed Deposits
If you are new to credit, you can take advantage of a credit card against a fixed deposit. By applying for this card, you pledge FD as security, which reduces the card issuer’s risk and improves your odds of approval. This effective solution also comes with lower interest rates and fees.
Co-branded Credit Cards
These are issued as joint ventures between brands or retailers and financial institutions. They provide special rewards when you shop at partner outlets. These cards offer loyal customers additional rewards and privileges which aren’t otherwise available.
Business Credit Cards
These credit cards are designed specifically for business owners and entrepreneurs. The catered features include:
- Higher credit limits
- Expense tracking tools
- Employee cards with personalised rewards
- Discounts tailored specifically for their work
Business cards help streamline expenses and better management of the cash flow while simultaneously keeping personal and professional finances separate.
Student Credit Cards
These credit cards are tailored for college students and young adults just beginning their credit journeys. They typically offer lower credit limits and fewer features compared to traditional cards but are great tools for developing financial responsibility at a young age.
By carefully evaluating the different types of credit cards, you can fulfil your aspirations while staying on track to achieve your goals. Remember to check the reward and benefits structure along with associated charges before you zero in on a card. Doing this will help you make the most cost-effective decision that aligns with your needs.
One option that stands out as an attractive choice for individuals searching for an all-in-one financial solution is the One Credit Card. Boasting a full-stack mobile app, this card features instant virtual card activation as well as a powerful dashboard to control your finances in easy clicks.
You can also share your credit limit with family members and set spending limits in various categories while reaping up to 5X reward points. Apply online to gain a comprehensive financial tool tailored specifically for modern convenience and control!
