Types of Credit Cards in India
09 Nov 2022Small plastic cards called credit cards are useful for simplifying life. You can use these cards to make credit-based purchases of goods and services, and you can pay them back at the end of each month. Your credit card company gives you the option of making monthly minimum payments or making full repayments of the credit you have borrowed. Keep in mind that if you only pay the minimum, interest will be added to your remaining balance. Your card company has established a credit limit for you.
The market for credit cards has expanded substantially in recent years, and there are now numerous varieties available in India. Despite having a basic purpose that is the same across all credit card categories, each card type has its own special features and advantages. If you are looking for a new credit or debit card for your investment portfolio, it is critical to understand the various types of credit cards available in India in order for you to decide with knowledge.
Simple, beginner-friendly credit cards are called basic credit cards, and they offer you a poor credit limit based on your monthly income. You can use the basic card to make purchases and make other transactions up to the available limit. These straightforward credit cards typically don't provide any extra perks or rewards. They work best for those who want to use a credit card for a limited period of time before deciding to build up their credit.
This kind of credit card has a number of excellent features, including:
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If your credit history is poor or nonexistent, it might be difficult for you to obtain a credit card. However, since they are frequently issued against funds deposited with the issuing bank, secured loan cards can be useful in this situation. It makes them ideal for people trying to improve their credit. Additionally, your bank deposit may also earn interest concurrently.
These are secured credit cards' main characteristics:
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For each rupee you spend on purchases and transactions that qualify, these credit cards offer rewards. For every 100 rupees spent online, for instance, you might earn 2 reward points. The accumulated reward points can then be used to buy goods or services from an already-existing selection chosen by the card issuer from a pre-existing catalog. You can therefore make money while spending it.
Reward credit cards frequently have the following characteristics:
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For eligible purchases and transactions, cashback credit cards typically offer a portion of the expenses incurred as cashback, as the name implies. The cashback may only be available on certain 'spend' categories, so make sure you read the fine print before applying for this type of credit card. The amount of money gained varies from card to card and from spend category to spend category as well.
Here are a few of the key characteristics of this category of credit card:
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It is best for frequent travelers to use travel credit cards. If you frequently fly for work or for pleasure, these credit cards offer a number of advantages. For each mile flown, they give out air miles as a reward. Then, you can use your accumulated air miles to purchase airline tickets. Travel credit cards also come with a number of helpful features.
Here is a brief overview of some of the best travel credit cards' features.
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For businesses that want to make it simpler for their employees to pay for work-related expenses, banks typically issue Business credit cards. These cards are typically used for travel arrangements for professional purposes, lodging costs, and routine transportation costs. These cards aren't given out to all employees; they're primarily given to those who frequently travel for work.
Business credit cards typically have the following key characteristics:
Now that you are aware of the various credit card types available in India, you can choose the right card type for your needs with more knowledge.