Different Types Of Credit Card Options Available In India

Different Types Of Credit Card Options Available In India

Last Updated on March 12, 2024 by admin

Credit card have changed the way we manage our money. They have been gaining tremendous popularity, and much of their fame stems from the fact that you have easy access to credit and the chance to earn rewards. There are different types of credit cards offer in India based on your needs and preferences. For instance, if you are a traveler, you can get a credit card that offers travel insurance, purchase protection, etc.  

The features and benefits of a credit card vary across different types. Before getting a credit card for yourself, it is imperative to know the different types of credit cards available and then choose one that best serves your needs. 

Here Are The Different Types Of Credit Cards In India: 

Basic Credit Cards 

Basic credit cards offer are ideal for those who are recently introduced to the world of credit cards. Your credit card limit is decided based on your income, and you can use the given limit to purchase goods and services. Credit card issuers do not offer any additional benefits on transacting with a basic credit card.

Secured Credit Cards

Borrowers with a poor credit history opt for secured credit cards. It requires you to deposit equal to your credit card limit. It acts as a security against default on repayments. If you pay your credit card bills on time for a few months, your credit card issuer will return the security deposit.

No Annual Fee Credit Card

As the name suggests, it is a type of credit card that does not levy an annual fee for using it. These cards are more like a basic credit cards with a few additional benefits. People who make limited use of credit cards usually consider a no annual fee credit card. 

Low-interest Credit Card 

It is a type of credit card that offers a lower interest rate compared to other credit cards offer in India. It is worth noting that it is not like your balance transfer credit cards where the interest rates are as low as 0%. Also, the rates are not valid for a specific time. Such credit cards are for people with a healthy credit score. 

Balance Transfer Credit Card

A balance transfer credit card comes with a low interest rate for a specific time after transferring the balance amount from your current credit card. If your current credit card has a high-interest rate, you can transfer its outstanding balance to a balance transfer credit card with a low-interest rate. Depending on your credit card issuer, you can avail of an interest rate as low as 0%. 

Cashback Credit Cards

Your cashback credit card offers a percentage of the purchase amount as cashback. Whenever you purchase goods or services with your credit card, your issuing bank offers to pay back a certain percentage of it. However, the cashback facility may only be applicable for select transactions. 

Rewards Credit Card

A rewards credit card offers rewards for every penny you spend with your credit card. For instance, you can earn five reward points for every Rs. 100 spent online. Your issuing bank decides the number of reward points you get for a specific type of transaction, such as grocery shopping, online payment, etc. 

Travel Credit Cards

If you are a frequent traveler, you can benefit from a travel credit card as it comes with benefits such as travel insurance, global acceptance, currency conversion rates, complimentary airport lounges, etc. To get a travel credit card, you must convince your issuing bank that you have a good income with a healthy credit score.

Entertain Credit Cards

It is a type of credit card in India that offers discounts on spending at cinemas, etc. For instance, you can get discounts for purchasing movie tickets, concert tickets, amusement park tickets, etc with your credit card. It is an ideal option for people who frequently visit movie cinemas, attend musical shows, etc. 

Shopping Credit cards

A shopping credit card is a type of online credit card that comes with attractive deals and offers for making purchases at shopping malls, merchant outlets, etc. Both online and offline shopping can get your rewards. You get reward points for every purchase you make.

Business Credit Cards

It is only for business use. It allows you to make purchases for your business and pay vendors without touching your cash reserves. Your business credit card eligibility depends on your credit history.  

Premium Credit Cards

These types of online credit cards offer are available for people with great income and credit history. They offer free access to airport lounges, concierge service, golf clubs, and insurance. Some credit cards offer complimentary travel and hotel accommodation coupons, and you may also get a personal relationship manager to handle your assets.

Read more: Best Fuel Credit Cards in India: Check Offers and Apply

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Sophia Anderson
Sophia Anderson is a finance writer and blogger with a passion for helping people improve their financial literacy. With over 5 years of experience in the finance industry, Sophia has worked with individuals, families, and small businesses to provide financial advice and guidance. Her expertise includes budgeting, saving, credit management, and debt reduction. Sophia is dedicated to breaking down complex financial concepts into easy-to-understand language and empowering her readers to make smart financial decisions. She is a frequent contributor to financial publications and has written extensively on topics such as personal finance, investing, and financial planning. Sophia's mission is to help people take control of their finances and achieve financial security and freedom. When she's not writing, Sophia enjoys hiking, practicing yoga, and reading personal finance books.