What are the different types of credit cards in India?
Different Types of credit cards in India – Various types of credit card facilities are offered by various banks in India, keeping in mind the needs and expenses of the consumers. If you are searching for a new credit card, you will not have to go through all the credit card options.
Credit cards can be confusing in choosing the right credit card out of a plethora of reserves.
To remove such confusion in credit card selection, dividing the credit card score into different categories, keeping in mind various parameters.
Banks and non-banking financial corporations generally offer credit cards in India based on the needs of the consumers. Also, standard features credit cards are issued by these entities with minimum annual fees. Credit cards are divided into different categories to help you choose the best credit card according to your convenience, and their features are described below.
Types of Credit Card in India
1st Types of Credit Cards- For First-time Users
These cards consist mainly of general features and do not include any specific benefits. This card charges a low annual fee with a regular feature.
If you have not taken a loan or credit card from any bank or financial institution, the bank or institution providing the credit card will treat you as a new credit card application.
The bank or institution that issued the card can’t ascertain your financial discipline because they do not have any credit score history.
This type of credit card does not require a credit score. The eligibility criteria for these credit cards are straightforward. If you are using a credit card for the first time, you should start with regular features and the lowest annual fee.
If you are applying for the first credit card, you should go for HDFC MoneyBack Credit Card because this card’s eligibility criteria and the annual fee are significantly less. This card meets the requirements of Young Professionals.
Features of moneyback hdfc card
- The annual fee on this card is ₹500.
- The monthly income should be at least ₹13500 to get this credit card.
- Reward points are awarded on every transaction.
- Reward points can be doubled on online shopping.
- Rewards points can be easily converted into cashback.
2nd Types of Credit Cards -For Low-Income Earners
These types of cards offer special benefits to the cardholder as per their budget. The annual fee charged on these credit cards is either not levied or levied in minimal amounts.
The eligibility criteria of this type of credit card are also elementary. Usually, the monthly income for this card should be ₹ 25000. This credit card offers exclusive offers on purchases in specific categories with low annual fees.
If you are willing to apply for this category of credit card, then, in my opinion, you should go for SBI SimplyCLICK Credit Card.
Features of SBI SimplyClick Credit Card
- For this credit card, the monthly income of the applicant is ₹ 20000.
- ₹499 is charged annually on the credit card.
- It is necessary to have an active credit history to get this credit card.
- Those applying for a credit card for the first time do not come under its criteria.
- Bonus points are awarded on purchases from selected partners.
- Extra reward points are awarded on online shopping.
3rd Types of Credit Cards- Travel Credit Cards
Traveling credit card comes with a host of travel-related features like additional offers on traveling chargers, airport lodge access facility, co-branded privileges, etc., along with a host of other perks.
If you are in a profession where you must undertake national and international travel, you should apply for this type of credit card. Because on this type of credit card you will get air travel tickets, airport lounge access,
Special discounts on airport spa services, hotel bookings, rental services, and foreign transaction fees are offered.
Suppose you are looking to apply for a travel credit card. In that case, I think you should go for the American Express® Platinum Travel Credit Card because this credit card is the best in the category of premium traveling credit cards in India.
Features of the American Express® Platinum Travel Credit Card
- The annual fee for this card is ₹5000.
- For this credit card, the monthly income of the applicant must be above 50000.
- A traveling voucher facility is given on this credit card.
- Free hotel accommodation is also provided during the trip.
- Special offers are provided when you spend more than the card limit.
- This credit card offers free membership to the Purity Pass program.
- With this credit card, you get access to a Deliverance rewards program.
4th Types of Credit Cards – Shopping Credit Cards
This card has been designed keeping in mind the shopping conveniences of customers. In which consumers are provided with special cashback on shopping through the card. The facility of reward points or cashback is provided for shopping online or offline with shopping credit cards.
Credit cards with unique features like accelerated reward points, cashback, discounts, etc., are issued by credit card, which provides institutions to customers who make frequent purchases. These facilities are mainly fed on apparel shopping, grocery shopping, and many such shopping categories.
If you want to apply for a shopping credit card, you should go with ICICI Amazon Pay Credit Card.
Features of Amazon Pay ICICI Credit Card
- There is no annual fee charged on this credit card.
- Information about the minimum monthly income requirement is provided to the applicant at the time of application.
- This card offers Amazon Prime users 5% cashback on purchases from Amazon India.
- Non-prime users are offered 3% off on purchases from Amazon India.
- If you do transactions online or offline, you are provided with 1% cashback.
5th Types of Credit Cards – Airline Credit Cards
This type of credit card is created in association with various airlines, which offer special discounts on air travel to the cardholder.
These credit cards are often prepared in collaboration with major airlines like Vistara, Air India or Etihad Airways, etc. Through Airline Credit Cards, the customer can avail of accelerated reward points, lounge access, and a host of other perks during airline service.
If you do all your air travel with one particular airline, this card may benefit you.
If you travel a lot, you should apply for an airline credit card. In my opinion, you should go with Axis Bank Vistara Signature Credit Card in this category.
Features of Axis Bank Vistara Signature Credit Card
- ₹ 3000 is charged as an annual fee on this card.
- The minimum monthly income is intimated to the applicant at the time of application.
- This card has been launched in association with Vistara Airlines.
- With this credit card, you are provided complimentary Club Vistara Silver Membership.
- The facility of CV Points on charging is provided on every air ticket.
- Premium Economy Class tickets are provided to you free of cost if you have exceeded a certain level of spending with this credit card.
6th Types of Credit Cards – Rewards Credit Cards
Rewards Credit Card customers are provided with reward points in return for spending across a range of categories. Plus, additional reward points are awarded for spending more than the limit set by the bank.
Most often, most credit cards offer reward points on purchases, but these types of credit cards provide accelerated points upon reaching a specific level of purchase. These reward points are a certain part of the purchases made by you. The cardholder can collect Reward Points over time and redeem in gradual items in the Rewards Catalog, Air Miles, Vouchers, etc.
If you want to choose a credit card in the Reward Points category, then SBI Card PRIME can be a better option for you.
Features of SBI Card Prime
- An annual fee of ₹ 2999 is charged on this card.
- The income of the applicant for this card should be at least ₹ 32000 per month.
- SBI Card PRIME ranks high in the category of best rewards credit cards in India.
- Rewards points are awarded on every purchase.
- Bonus points are awarded on utility bills, catering grocery movies, and other payments.
- This credit card offers reward points and access to travel benefits like Priority Pass, Mastercard and Vistara lounges, etc.
- This credit card entitles you to Club Vistara Membership for free.
7th Types of Credit Cards – Cashback Credit Cards
Cashback Credit Cards provide a cashback facility to the consumer instead of Reward Points.
Some credit cards offer you reward points for online or offline purchases, which you can redeem. On this category of credit cards, you are provided with cashback compared to reward points, which you can use again for shopping.
Some cards in this category offer direct cashback, while others convert reward points into statement credit.
If you want to apply for a credit card in this category, you should go with HSBC Cashback Credit Card.
Features of HSBC Cashback Credit Card
- This credit card offers cash back without any maximum limit on all purchases.
- A special discount is provided on the spending on selected brands using this card.
- This card entitles you to free airport lounge access.
- This card offers you a large number of welcome benefits.
8th Types of Credit Cards – Fuel Credit Cards
This type of credit card is designed keeping in mind the diesel petrol consumption of the consumer. Discounts, extra rewards points, and surcharges are waived off on the purchase of petrol or diesel to the consumer through these credit cards.
With this category of credit cards, you can avail of discounts, rewards, or cashback on petrol or diesel spends. Some credit cards in this category offer services such as accelerated free fuel or accelerated rewards on purchasing petrol and diesel from a particular major brand that you can redeem against fuel.
If you want to apply for a credit card in this category, then IndianOil Citibank® Platinum Credit Card can be a better option for you.
Features of Indian Oil Citibank Credit Card
- The annual fee on this card is ₹ 1000.
- To apply for a credit card, the applicant must have a minimum monthly income of ₹25000.
- This card can be availed free of cost 71 liters of petrol and diesel Turbo Points, like a fuel surcharge waiver.
- This credit card gives you travel points on which mode which you can redeem in fuel.
9th Types of Credit Cards – Entertainment Credit Cards
These credit card scores are primarily designed keeping in mind the entertainment-related expenses of the consumer. The consumer provides special discounts on the purchase of movie tickets, BOGO deals, and other types of entertainment-related arrangements through this credit card.
Entertainment credit cards are designed to help you spend on entertainment such as movie tickets, events, etc. Some credit cards also offer special entertainment spends in association with specific entertainment brands such as PVR, BookMyShow, etc.
If you are willing to take a credit card in this category, then HDFC Times Platinum Credit Card is a better option for you.
Features of HDFC Times Platinum Credit Card
- ₹ 1000 is charged as an annual fee on this card.
- It is necessary to have a minimum income of ₹ 30000 per month to apply for the card.
- The card offers consumers exclusive opportunities on Dining and Movies services.
- With this card, a discount of 25% is given on buying movie tickets from BookMyShow.
- Up to 20% discount is provided on the payment of dining bills with this card.
- If you spend on dining with this card on weekdays, 10 reward points are awarded for every ₹100 spent.
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10th Types of Credit Cards – Secured Credit Cards
These types of credit cards are usually provided against fixed deposits. These credit cards are often beneficial for those who face many difficulties in getting a regular credit card.
Secured credit cards offer the consumer an opportunity to earn interest and utilize the credit card limit on fixed deposits.
This credit card can benefit those who cannot get a credit card with a high credit limit due to poor credit scores.
If you are interested in which category of credit card, then you should go with SBI Card Unnati.
Features of SBI Card Unnati
- No annual fee is charged on this card for the first four years.
- For a credit card application, the applicant must have a fixed deposit of at least ₹ 25000.
- If you spend ₹ 50000 with this card in 1 year, you are provided with a cashback offer of ₹ 500.
- A fuel surcharge is waived at all petrol pumps in India.
What are the factors to be kept in mind while choosing a credit card?
If you want to apply for a credit card and face any dilemma in choosing the right credit card, you must consider some points given below while applying for the credit card. These points will prove helpful in your credit card choice.
Know your spending pattern
Before applying for a credit card, be sure to look at your monthly spending pattern. For example, if you do international travel occasionally, then a premium traveling credit card is unnecessary. On which item you spend the most, choose a credit card in the category related to that. If you don’t meet the spending discount on a credit card, you’ll not only be unable to make full use of the credit card, but you’ll also incur hefty annual fees.
Know your financial needs
Before applying for a credit card, identify your financial needs and ask yourself why you need a credit card. If you want to build a credit score, you should choose a credit card with zero annual fees. If you’re going to transfer your outstanding balance to other credit cards, you should select a credit card that charges the lowest interest rate. Once you decide what you need a credit card for, it will be easier to choose a credit card with a better category.
Once you understand your financial needs and spending patterns, research the various credit cards available in the market for the category you want to choose the credit card. That is, study in-depth the facilities and fees available under all types of credit cards publicly related to the class for which you want to choose the credit card.
You can take the help of an online search to choose the best option for a credit card where a review is made available by doing a comparative study of credit cards on various websites.
Research on the benefits available in a specific category
Once you have decided on a category for your credit card, then study the comparative benefits available on all the credit cards public under that category. For example, suppose you want a traveling credit card and the general facilities available under traveling credit cards. In that case, special attention should be paid to unique facilities like Emergency Overseas Hospitalization Cover, Air Accident Insurance, etc.
There are more than 350 types of credit cards facilities available of many types of credit cards to consumers in India. With such a wide variety of credit cards, it can be difficult for ordinary people to choose the best credit card. Before choosing a credit card:
- Keep in mind the points mentioned above.
- Keep your spending trend and financial needs.
- Do thorough research about the related category of credit cards available in the market.
- Choose the better option.
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