DIFFERENT TYPES OF CREDIT CARDS IN INDIA

A credit card is a very effective financial tool that simplifies your financial problems and comforts you by giving you credit for a predetermined duration, following which users must return the funds to the lender. It may be challenging to decide what card to use because this plastic money has many categories and attributes and making the proper decision can be overwhelming. Choosing the area for which you require the card is thus the first step. Credit cards come in various forms, including travel credit cards, cashback credit cards, rewards credit cards, and fuel credit cards. The many credit card kinds and categories are shown below in detail:

 

Cashback credit cards:

These are the most common and most popular type of credit card offered in the market. Cashback credit cards let customers earn cashback on their transactions. Credit cards provide you cashback in different ways and on various transactions; some credit cards offer you cashback on each regular transaction you conduct, whereas some may offer cashback on select transactions but at a high percentage.

The following list includes some of the top cashback credit cards.

 

  • Axis Bank ACE Credit Card.
  • HDFC Bank Millennia Credit Card.
  • Paytm SBI Credit Card Select.
  • Cashback SBI Card.

 

Lifestyle credit card:

The users’ shifting incomes and preferences are considered while designing lifestyle credit cards. Most lifestyle credit cards offer rewards, including dining, retail, vacation, and sports. Such cards typically include no yearly fees for the initial year, cashback on travel purchases, insurance savings, etc. Using lifestyle credit cards, users can boost and receive extra credits for various expenditures. Most such cards are Platinum credit cards with exceptional travelling, retail, restaurant, and luxurious lifestyle benefits.

Listed below are some of the finest lifestyle credit cards:

 

  • IndusInd Bank Platinum Aura Credit Card.
  • Axis bank Magnus credit card.
  • Kotak bank PVR platinum credit card
  • Axis bank privilege credit card.

 

Fuel credit cards:

For the ever-varying prices of fuel, there are unique credit cards designed for people to save on fuel transactions. By offering reward offers and exemptions of gas surcharges, this card assists clients in saving money when refuelling their vehicles. When purchasing fuel at particular gas stations in India, some lenders also give rapid rewards points. Refuelling can be paid with the earned reward credits for a fixed sum. The activating reward, entertainment bonuses, food, hotel, and wellness offerings, among many other things, are extra advantages.

The following are a few top fuel credit cards:

 

  • Indian Oil CitiBank Platinum Credit Card.
  • Indian Oil CitiBank Titanium Credit Card.
  • YES, first preferred credit card.
  • HDFC money-back credit card.

 

Lifetime free credit card:

Lifetime-free credit cards are also the most popular in the market nowadays. As the name says, these credit cards are free for life, which means users do not have to pay any joining or annual fee for these cards. These cards usually do not come with the most extravagant perks, but they provide the best essential benefits in the free category.

Some examples of lifetime-free credit cards are:

 

  • HSBC Visa Platinum.
  • IndusInd Bank Platinum card.
  • ICICI Instant Platinum Credit Card.
  • IDFC FIRST Classic Credit Card.

 

Entertainment credit cards:

Credit cards for entertainment are made to assist customers in cutting costs on things like cinemas, concerts, and other varieties of entertainment. With savings, rebates, or buy-one-get-one-free offers on cinema seat reservations, concerts, exhibitions, and other amusement, entertainment credit cards are renowned for their incredible entertainment deals. The users of such cards can also take advantage of golfing, eating, retail, and vacation incentives. Furthermore, users can accumulate rewards credits on all such purchases and exchange them for gift vouchers, cinema passes, and vacation reservations.

The best credit cards in the entertainment category are:

 

  • Axis Bank My Zone Credit Card.
  • SBI Card Prime.
  • Axis Bank Neo Credit Card.
  • Kotak PVR Gold Credit Card.

 

Travel credit cards:

Travel credit cards are made while keeping frequent travelers in mind. Travel credit cards offer various perks that are centered toward travelling, but that does not mean they do not offer primary perks. Benefits of travel credit cards include membership programs, Airmiles, lounge access, minimal international transaction fees, special rates on rental services, hotel discounts and reservations, and much more. Users who hold these cards may exchange their bonus credits for air miles, which can then be utilized to purchase airfares and select better flight seats. Travel cards offer discounts on hotels, vacations, golf, restaurants, travel insurance, etc.

The most popular travel credit cards are listed below:

  • SBI card Elite.
  • Citi premier mills.
  • Axis bank Vistara signature.
  • HDFC Regalia.

 

Secured credit card:

A secured credit card is provided in exchange for a personal asset, most commonly a Fixed Deposit. If you aren’t qualified to receive a regular credit card, this can be an excellent area to begin. India’s most prominent banks issue secured cards in exchange for fixed deposits. Having a bad credit score can cause a hindrance if you are looking for a regular credit card, so for those who are most of the time turned down and rejected, secured credit cards can be highly beneficial.

The most widely used secured credit cards include:

 

  • ICICI Bank Rubyx Credit Card.
  • Bank of Baroda (BoB) Prime Credit Card.
  • Axis Bank ACE Credit Card.
  • YES, Prosperity Rewards Plus Credit Card.

 

Premium credit cards:

Premium credit cards are more costly and focus on the customer’s pleasure. Individuals get to enjoy benefits such as golf games, unrestricted lounge access, special deals on dining, wellness facilities, airline reservation special offers, and so on. Such credit cards might be ten times as costly as regular credit cards. But they also offer more meaningful choices for redeeming points earned with these cards.

Here are a few of the top premium credit cards:

 

  • American Express Platinum Card.
  • Citi Prestige Credit Card.
  • HDFC Diners Club Black Credit Card.
  • Axis Reserve Credit Card.

 

Co-branded credit cards:

Credit cards with two distinct brands, one of which is a credit card issuer and the other, which is a well-known brand, are referred to as co-branded credit cards. Customers can benefit from that brand’s exclusive features and many more with these credit cards. The best fit for co-branded credit cards are people who are devoted consumers of the specific brand with which the bank has partnered. These credit cards are usually recognized worldwide. Additionally, they provide Fee exemptions upon spending a particular amount and unique benefits and price cuts from the brand associate. These are perfect for those who shop frequently and have high living costs.

Some of the best co-branded credit cards are:

 

  • Yatra SBI Credit Card.
  • Amazon Pay ICICI Credit Card.
  • Flipkart Axis Bank Credit Card.
  • MMT ICICI Bank Signature Credit Card.

 

BOTTOM LINE:

The key is picking the credit card that best suits your requirements and offers you the greatest advantages among the numerous different credit card options. No ‘best’ credit card would fit every human living on this earth; therefore, you need to figure out your needs and wants and select your best credit card on that basis.

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