IndiaLends Advisory

By IndiaLends Advisory

Aug 09, 2018

Types Of Credit Cards

Our needs and wants are constantly inflating and with that, the alternatives to satisfy those needs are also increasing. Whether you’re looking for a smartphone with a good camera or a credit card which serves to your purpose, all such facilities are now a click away. Financial institutions offer various types of credit cards to its users. Whatever your need might be, there’s always a credit card to help you out. From travel benefits to cashback to the lifestyle, they have got it all covered. And if used wisely they can also improve your credit score. Just stay away from credit mistakes like defaulting on payments or only paying the minimum amount due. There are several types of credit cards which offer droves of benefits, divided to cater to different individuals with diverse interest.

Related Article: Best Credit cards of 2018 by IndiaLends

There might be several questions jostling your mind like what are the types of credit cards? How are they beneficial to me? Time to give a break to such thoughts, as we have made a list of types of credit cards in India and their uses so you can compare credit cards. Read this on to know about types of credit cards and find out the best credit card in India for your needs.

 

Balance Transfer Credit Cards-

The first credit card in our credit cards types list is a balance credit card. A balance transfer credit card enables a person to transfer amount from a high-interest card to a lower one and helps to pay-off debts easily. A credit card balance transfer can come handy, to pay off any outstanding amount and get out of the huge burden of debt. There are several other benefits of using a balance transfer card like-

–> Savings on interest- It’s a no-brainer that you’ll be saving more on a balance transfer, as compared to other cards. You’re basically transferring your outstanding amount from a high-interest credit card to a lower one.

–> Quick processing- The processing of such cards is pretty quick and won’t eat up your much time.

–> Multiple transfers- You can transfer your outstanding balance from multiple cards to a relatively newer one. Hence, consolidating all your debts.

 

Rewards Credit Cards-

As the name suggests, reward credit cards are those which provides rewards on your credit purchases. They are widely popular because of their rewards services system. A cardholder can earn reward points from purchases made from both offline and online sources. You can earn these reward points as welcome gifts, renewal bonus etc. Whenever someone makes a purchase, these reward points are added and can be redeemed later to get discounts or cash back on purchases.

Some of the most popular reward credit cards are-

–> Citibank reward credit cards

–> Simply Click SBI card

–> Citi cashback credit card

–> American Express Gold card

 

Charged Credit Cards-

A charged card is a type of card which provides a payment method enabling the holder of the card to make purchases, which are later paid by the card issuer; to whom the funds are to be paid later on. These cards are generally offered to borrowers with great financial habits and record. American Express is the primary issuer of charge cards. Unlike a credit card, a charge card doesn’t have any credit limit, as they don’t extend the credit before the monthly payment date. All the late payments are subject to a fee, charge restrictions, or cancellation of the card.

 

Auto/Fuel Credit Cards-

Such credit card offers great benefits for gas purchases or refueling. The card also helps in saving a decent sum of money with its cashback offers and fuel surcharge waivers. If you’re into a transport business and spend heavily on fuel charges then this card will help save money on your purchases. The benefits of such cards are doubled with extra rewards and offer on travel, shopping etc.

Some of the credit cards offering this service are-

–> IndianOil CITI Platinum Credit Card

–> RBL Titanium Delight Credit Card

–> HDFC Bank Regalia First Credit Card

 

Business Credit Cards-

These cards are meant or offered to business establishments, corporates meant specifically for business purposes. Such cards help a business owner to efficiently manage the both personal and business finance. The card also provides hefty rewards and benefits to the user. A company can avail benefits like fuel surcharge waivers, airport lounge access, rewards program, hotel accommodations, travel deals and several other benefits.

Some of the business cards are-

–> Yes Bank First Business Credit Card

–> Yes Prosperity Business Credit Card

 

Cashback Credit Cards-

As the name itself suggests, these cards provide cashback on the credit purchase bills. A cashback can be earned through paying bills, booking movie tickets, retail purchases, grocery bs, dining bills etc. They have many other benefits too like fuel surcharge waivers, shopping privileges, rewards program etc.

 

Some of the cashback cards offered are-

–> CITI Cash Back Credit Card

–> Simply Click SBI Credit Card

–> ICICI Bank Platinum Chip Credit Card

–> HDFC Money Back Credit Card

 

Classic Credit Cards-

A classic credit card comes with hoards of benefits like a cash advance, interest-free credit period, rewards program, supplementary cards, revolving credit and several other benefits. Most classic cards don’t have an annual fee or the joining fee is quite low.

 

Co-branded Credit Cards-

These credit cards are in association with a financial institution,a travel aggregator, or a retail brand. All the privileges and benefits are merged into a single co-branded card, and hence doubling-down the benefits provided to the customers. A bank basically ties-up with a merchant, so that they can expand their customer base through the merchant’s clientele too. A co-branded card has several benefits like holiday or hotel accommodation privileges, rebates, discounts on clothing and food item, discount on movie tickets, cheap airfares etcetera.

Some of the co-branded cards are-

–> IRCTC SBI Platinum Credit Card

–> Yatra SBI Credit Card

–> Air India SBI Signature Credit Card

–> Mumbai Metro SBI Credit Card

 

Contactless Credit Cards-

A Contactless credit card consists of a contactless or seamless payment through the card at a merchant’s place by simply tapping their cards at the POS terminal. These cards do not require any PIN number to make a payment and are completely secure. Just like any other credit card, they too have certain benefits like discounts, cash rewards, reward points, welcome gifts, airport lounge access etc.

For instance, SBI Styleup contactless card is one such credit card.

 

Credit Cards for Women-

In an era, where women are stepping up to their rights and coming toe to toe in this men dominated society. It’s no surprise that banks are introducing special cards for such strong figures and giving them extra support. These cards are exclusively designed for a modern age woman who wants to reap out benefits while saving on their purchases. Also, these cards provide benefits on shopping and cashback offers. Apart from this, a cardholder also gets benefits like fuel surcharge waiver, insurance etc.

Some of these cards are-

–> HDFC Bank Solitaire Credit Card

–> Citibank Rewards Credit Card

–> ICICI Bank Coral Credit Card

 

Entertainment Cards-

If you’re bitten by the entertainment bug and can’t stop yourself to feed your entertainment needs every weekend then entertainment cards are here to help. Designed specifically to give entertainment offers to the cardholder like discounts on tickets bookings for events, shows, concerts, and offers like buy 1 get 1 free on movie tickets these cards have it all covered for you. Cardholders can also earn reward points on these transactions and redeem them for several other benefits.  

Some of the cards are-

–> Kotak PVR Platinum Credit Card

–> Kotak PVR Gold Movies Credit Card

–> HDFC Titanium Times Credit Card

 

Gold credit cards-

A gold card is meant for people in the higher income group and with a good credit score. Some features of a Gold credit card are-

Cash withdrawal limit is high

–> High credit limit

–> Cashback offers

–> Rewards program

–> Travel Insurance

Some of these cards are-

–> The American Express Gold Card

–> Kotak PVR Gold Card

 

Lifestyle cards-

We have come a long way since our civilization began at the hands of our ancestors. We’ve come so far from that primitive stone age and are continuously improving. All this happened because of our never-ending wants from ourselves or mother nature. Moreover, to pick apace with our changing financial habits and lifestyle, banks have designed some specific lifestyle cards to adapt to the changing consumer needs. Also, most lifestyle credit cards carry golfing privileges, shopping privileges, dining, travel and other benefits. Customers can also earn bonus and accelerated rewards points with such cards on their purchases.

 

Platinum credit cards-

These cards are among the list of popular credit cards because of their benefits and privileges. They also offer benefits like dining, shopping and entertainment offers. The annual joining fee for the card is little higher, as compared to other credit cards.

Some of these cards are-

–> Jet Airways American Express Platinum Credit Card

–> RBL Platinum Delight Card

–> RBL Platinum Maxima Card

–> ICICI Bank Platinum Chip Credit Card

–> Jetprivilege Hdfc Bank Platinum Credit Cards

–> Kotak Essentia Platinum Credit Card

–> Kotak Delight Platinum Credit Card

–> ICICI Ferrari Platinum Credit Card

 

Premium/Signature credit cards-

Signature cards provide exclusive benefits and rewards to its customers. They also have privileges like flexible spending limits, premium airport lounge access, concierge services, complimentary insurance, reward programs, global assistant services and many other premium benefits. Some of these cards also have an annual fee waiver, provided the cardholder reaches a certain amount.

Some of these cards are-

–> Air India SBI Signature Credit Card

–> Kotak Royale Signature Credit Card

–> ICICI Ferrari Signature Credit Card

–> HDFC Jet Privilege Platinum Credit Card

–> American Express Platinum Reserve Card

–> American Express Platinum Travel Card

 

Prepaid credit cards-

They enable a user to pre-loan money in the account and use that money to make purchases. Although these cards do not offer a line of credit on their purchases, customers can still enjoy several privileges and benefits provided by such cards.

 

Silver credit cards-

The salaried professionals can procure this type of credit card if they have a good credit score. Such cards have a low membership fee and also offers benefits like zero interest rate for the initial 6 to 9 months, on balance transfer.

 

Titanium credit cards-

They are similar to Gold credit cards, but with extra benefits and rewards. The key feature of such cards is the titanium rewards program that it offers to its customers. Additionally, this reward program includes redemption of gifts, Airmiles, cashback offers etc. Also, some other benefits that this card offers are annual fee reversal, insurance, welcome gifts, surcharging waivers, revolving credit add-on facility etc.

Some of these cards are-

–> RBL Titanium Delight Card

–> HDFC Bank Times Titanium Credit Card

 

Travel credit cards-

Travel credit cards are becoming widely acceptable and popular, because of their attractive rewards and benefits. These cards offer a wide range of benefits on cards both, domestically and internationally. Also, banks ties-up with an airline company or a travel company to provide valuable offers to its customers. Customers can also earn reward points, which can later be converted into Airmiles; to be redeemed later. These reward points can also be used to reap benefits like upgrading seats, discounts on flight tickets etc.

Some of the travel credit cards are-

–> IRCTC SBI Platinum Card

–> Air India SBI Platinum Card

–> Air India SBI Signature Credit Card

–> SBI Yatra Credit Card

–> American Express Platinum Travel Card

–> ICICI Jet Sapphiro Credit Card

–> ICICI Jet Coral Credit Card

–> Citi Premier Plus Credit Card

–> ICICI Jet Rubyx Credit Card

Related Article: Pros & Cons of Using Credit Cards

So this was our list of the best credit cards. While there are several types of credit cards available out there, covering all major aspects, it’s important to assess your financial objectives before option out for such types of credit cards. Also, You will need to consider other things like checking your credit report, income statements before you apply for a credit card.

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