The Different Types of Credit Cards in India

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types of credit cards in India

Credit cards have completely taken all over the world and have revamped the functioning of the credit market. Every 8 out of 10 people owns a credit card nowadays. Credit cards are a bundle of perks and benefits. Each credit card has different offers and features that a credit cardholder can enjoy. There is a wide array of credit cards available in the market one can for, from Shopping credit cards to Travel credit cards. Here is a list of different types of credit cards in India:


Lifestyle Credit Cards: Lifestyle credit cards offer various privileges like golf, shopping, dining, and travel, etc. These are specially designed to provide a luxurious lifestyle to the credit cardholders, offering superior shopping, travel, dining, golf, spa, and other luxury lifestyle privileges.


Travel Credit Cards: Those who are frequent flyers and travel a lot should go for a travel credit card. The credit cardholder enjoys unlimited travel benefits of such credit cards. There are banks that offer travel credit cards in partnership with airline companies. You earn Airmiles on these cards which can be further redeemed for booking hotels, buying flight tickets, etc. 


Cashback Credit Cards: Cashback credit cards offer a certain amount of cash back to the credit cardholders on making transactions. The cashback can vary from 10% to 25% depending on the credit cards. Earned cashback can be used for purchasing movie tickets, groceries, paying bills, etc. The cashback is directly credited to your account and you do not have to worry about the validity period to redeem your cashback. 


Fuel Credit Cards: Fuel credit cards offer benefits on every rupee spent on fuel transactions. You earn reward points too on the fuel transactions which can be further redeemed towards refueling. You get cashback offers and fuel surcharge waivers on such credit cards. 


Co-branded Credit Cards: On such credit cards the credit cardholders enjoy double benefits, one provided by the bank and the other one provided by the co-partner brand. For example Yatra SBI Credit Card, IRCTC SBI Platinum Credit Card, etc. You can enjoy discounts and offers from a retail partner brand, ticket bookings from airlines and railway partners, etc.


Business Credit Cards: These credit cards are specifically designed for business establishments and corporates. The privilege offered on this type of credit card includes hotel accommodation, travel deals, business saving plans, airport lounge access, and a lot more other benefits. 


Entertainment Credit Cards: These credit cards provide you benefits and offers on the movies and dining. For example buy 1 get 1 offer on booking movie tickets from BookMyShow. Like Kotak PVR Gold Credit Card and HDFC Titanium Times Credit Card. 


Rewards Credit Cards: These type of credit cards offers the credit cardholders reward points on every rupee spent on it. You can easily redeem accumulated reward points on this type of credit card. Some credit cards allow you to clear your credit card bill by using reward points.


No Annual Fee Credit Cards: These are pocket-friendly credit cards as you do not have to pay an annual fee on using the credit card. They can fall under the category of entry-level credit cards and are ideal for first-time credit card users. 


Secured Credit Cards: These credit cards are issued against the fixed deposit. Fixed deposit works as collateral security in this type of credit card. They are easier to get and are a good way to build & re-build credit history. 

Bottom Line

The applicant depending on its requirement should apply for a credit card that fits its profile. Credit card issuers look for certain parameters before issuing a credit card to the applicants, like, income eligibility, age requirement, credit history, etc. Starting a credit journey with a secured credit card or no annual fee card would be the best choice for first-time credit card applicants. As they help him to build a credit history and keep him away from a possible debt trap. Keep your dues clear and use the credit card within the provided Credit limit and you will be good to go. 

The above given types of credit cards might have helped you with which type of credit card you should go for. Do let us know in the comment section which type of credit card you would go for?


Additional Reading - Questions to Ask Before Getting a Credit Card

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