Credit card: Types of credit card

Jan 11, 2024 dmsprooha No Comment 50 Views

CREDIT CARD : TYPES OF CREDIT CARD

A credit card is a money card with which people can buy clothes, toys, and other things when they do not have money. These cards are given by financial banks, depending on their earning. Cardholders can make purchases through this card up to a certain limit, which depends on their financial history, income, and other factors.

Different types of credit cards in India

There are many banks in India that offer different types of credit cards. These cards are classified according to the rewards and benefits they offer, as well as based on users’ earnings and spending. Customers can choose any credit card that offers them lots of benefits and suits their needs. For example, if you travel a lot, a travel card is best for you as it can provide you with many benefits when you travel by air, like earning air miles, access to airport lounges, etc. . In India, credit cards appear through currency networks such as Visa, MasterCard, American Express, Diners Club, etc.

Table of Contents

Fuel credit card

Fuel credit cards offer benefits to cardholders who transact on fuel. This card helps customers by offering cash back and waiver of fuel surcharge on every fuel transaction. Some banks also offer fast redemption points on fuel transactions if they are at certain petrol pumps in India. Rewards points accumulated can be used to redeem for fuel up to a certain value. Other additional benefits include activation bonuses, entertainment benefits, dining, hotel and wellness offers, etc.

The annual and joining charges on fuel/auto credit cards are very low and everyday metro/train commuters can avail of these cards. These cards also function as a travel card and can be used as a normal credit card, which can be used for shopping and other purchases. As a welcome offer, these cards come pre-loaded with a certain amount of money and also have a neat offer feature. Customers can earn reward points on offer and other transactions. Some cards also offer annual discount deals, added card convenience, and waiver of surcharges to cardholders.

Following are some of the famous Auto/Fuel Credit Cards:

  • BPCL SBI Credit Card
  • Indian Oil Axis Bank Credit Card
  • HDFC Bharat Cashback Credit Card
  • Indian Oil HDFC Bank Credit Card
  • ICICI HPCL Super Saver Credit Card
  • HPCL IDFC FIRST Power+ Credit Card
  • BPCL SBI Card Octane

Contactless credit card

Contactless credit cards are equipped with a special payment technology that allows cardholders to make payments by simply tapping their card at the POS terminal. These contactless transactions do not require customers to enter any PIN number and are extremely secure. These cards have multiple benefits such as discounts, cash rewards, entertainment benefits, rewards points, welcome gifts, lounge access, concierge service, insurance policies, etc.

Some of the famous contactless credit cards are:

  • SBI Signature Contactless Credit Card
  • AU Bank Vetta Credit Card
  • Kotak Royale Signature Credit Card

Women credit card

To ensure that women customers get the most benefits, some banks have introduced credit cards specifically designed for women. The main focus of these women’s credit cards is on shopping rewards and cashback offers. Additionally, cardholders can avail bonus reward points, fuel surcharge waiver, insurance, etc. They can also earn rewards points when they make purchases using their credit cards. There are some women’s credit cards that offer amazing travel benefits.

credit card image

Some of the famous women credit cards are:

  • HDFC Bank Solitaire – Premium Women Credit Card
  • Kotak Mahindra Bank Silk Inspire Credit Card

Travel credit card

Travel credit cards are popular because of the unlimited travel benefits they offer. These cards offer travel benefits not only in India, but also abroad. Most banks have tied up with airline companies or travel companies to offer travel credit cards. When customers use this card to make travel transactions, they can earn air miles. Additionally, some travel cards provide customers with access to airport lounges. The reward points customers earn on these cards can be converted into air miles, which can be used to book flight tickets and upgrade seats. Travel cards also offer hotel and holiday offers, golf offers, dining offers, travel insurance etc.

Some popular travel credit cards are

  • JetPrivilege IndusInd Bank Odyssey Credit Card
  • JetPrivilege IndusInd Bank Voyage Amex Credit Card
  • JetPrivilege IndusInd Bank Voyage Visa Credit Card
  • IndusInd Bank WorldMiles Credit Card
  • Axis Bank Miles & More Credit Card
  • HDFC All Miles Credit Card
  • Air India SBI Signature Credit Card
  • Air India SBI Platinum Credit Card
  • Standard Chartered Emirates Platinum Credit Card

Cashback credit card

Cashback credit cards offer customers cashback on their transactions, ranging from 5% to 20% depending on the spend category. Cashback can be earned on bill payments, movie ticket booking, retail shopping, dining bills, grocery shopping etc. The key features available with every cashback card are fuel surcharge waiver, annual fee reversal, dining and shopping privileges global acceptance, rewards programs. Balance Transfer, etc.

Some of common cash back cards are

  • Axis Ace Credit Card
  • cashback sbi card
  • Flipkart Axis Bank Credit Card
  • Amazon Pay ICICI Credit Card
  • HDFC Millennia Credit Card
  • Swiggy HDFC Bank Credit Card

Co-Branded Credit Cards

Co-branded credit cards are offered by banks in collaboration with a retail brand, travel aggregator or any other financial institution. The privileges from both sides have been integrated into one co-branded credit card, allowing customers to enjoy dual benefits through one card. The most successful co-branded credit cards have been issued with retail merchants because banks can easily expand their customer base through the merchant’s customers. Depending on the tie-up, co-branded credit cards may have benefits such as discounts and offers from retail partner brands, sports benefits from sports leagues, ticket booking privileges from airline and railway partners, travel time off and hotel accommodation privileges. Although these credit cards share the characteristics of two major institutions, there are no restrictions on usage.

Some popular co-branded credit cards are

  • SBI Travel Credit Card
  • IRCTC SBI Platinum Credit Card
  • Bank of India TAJ Premium Credit Card

Rewards credit card

Reward credit cards, which are known to offer many rewards on every card purchase. Cardholders can earn reward points on every card transaction (retail, online etc.). They can also get birthday gifts, welcome gifts, renewal bonuses and other reward points. They can also earn points by spending a certain amount in a certain time. Reward points can be redeemed for certain products and services, like cashback, flights or travel, etc. Some cards allow cardholders to make installment purchases.

Some popular rewards credit cards are

  • Standard Chartered Platinum Rewards Credit Card
  • FinBooster: Yes Bank-BankBazaar Co-Branded Credit Card”

Business/Corporate Credit Card

Business credit cards are offered to business establishments, corporates and other financial institutions where employers can offer credit cards to their employees and also manage finances on the card easily. These cards cannot be used by employees for personal transactions and are valid only during the period of their employment with the company. Privileges offered on the corporate card include hotel accommodation and travel deals, business savings plan, expense management, insurance, fuel surcharge waivers, airport lounge access, rewards programs, cash advances, add-on cards, bill payments and monthly purchases. There are options to change to. Companies also have the option to imprint the company name on these credit cards.

Some popular business/corporate credit cards are:

  • SBI Platinum Corporate Credit Card
  • SBI Signature Corporate Credit Card
  • SBI Corporate Utility Credit Card
  • Canara Corporate Credit Card
  • BOB Corporate Premium Credit Card
  • HDFC Corporate Platinum Credit Card
  • HDFC Corporate World Mastercard Credit Card
  • HDFC Corporate Visa Signature Credit Card
  • HDFC Business Gold Credit Card
  • HDFC Corporate Credit Card
  • Kotak Corporate Platinum Credit Card
  • Kotak Corporate Wealth Signature Credit Card
  • Kotak Corporate Gold Credit Card

Lifestyle Credit Card

Lifestyle credit cards are designed keeping in mind the changing lifestyle and income of the applicants. Most lifestyle credit cards include golfing privileges, shopping privileges, dining, travel, and other benefits. These cards usually come with first year annual fee waiver, cashback on tickets, insurance discounts, etc. Customers can earn bonuses and instant rewards points on their purchases with the Lifestyle Credit Card. Most of these cards are platinum credit cards and offer superior travel, shopping, dining and luxury lifestyle privileges.

Some Popular Lifestyle Credit Cards

  • HDFC Bank Diners Club
  • HDFC Bank Regalia First Card
  • Axis Bank Privilege Credit Card
  • Kotak PVR Platinum Credit Card
  • Axis Bank Signature Credit Card with Lifestyle Benefits.

Entertainment Credit Card

Entertainment credit cards are known for their amazing entertainment offers, which include discounts, cashback or buy 1 get 1 free offers on movie ticket bookings, events, shows etc. These cards also offer lifestyle, golf, dining, shopping and travel benefits. Cardholders can also earn reward points on transactions and use them for movie tickets, travel bookings or gift cards.

Some popular entertainment credit cards are:

  • Kotak PVR Gold Credit Card
  • Kotak PVR Platinum Credit Card
  • HDFC Titanium Times Credit Card

Premium/Signature Credit Card

Most banks offer “premium” or “signature” credit cards that come with the best lifestyle privileges. Premium credit card in a league of its own with exclusive privileges like flexible spending limits, premium airport lounge access, concierge services, complimentary insurance, rewards programs, global assistance services, chartered yacht and flight services, surcharge discounts, retail, travel and hotel Are. Housing Voucher, etc. There are more options to redeem the rewards earned using these cards. Some of these cards offer annual fee waivers provided cardholders reach a certain spending amount.

Some popular signature credit cards are

  • SBI Advantage Signature Credit Card
  • IDBI Royal Signature Credit Card
  • BOB Signature Visa Credit Card
  • HDFC Visa Signature Credit Card
  • Kotak Royal Signature Card
  • Kotak Privy League Signature Card
  • Kotak NRI Royal Signature Card
  • IndusInd Bank Signature Credit Card
  • IndusInd Bank Indulge Credit Card
  • IndusInd Bank Pinnacle Credit Card
  • IndusInd Bank Iconia Credit Card
  • Axis Bank Pride Signature Credit Card
  • Axis Bank Signature Credit Card with Lifestyle Benefits

Prepaid credit card

Prepaid credit cards allow cardholders to load a certain amount of money onto it and use that money to make purchases. Even though these cards do not offer a line of credit, customers can enjoy most of the privileges that are offered by other types of credit cards. Balance is the amount left in the prepaid card by the customer after a certain transaction.

Some prepaid credit cards are as follows

  • Millenia Prepaid Card
  • Smarthub business prepaid card
  • FoodPlus Prepaid Card
  • Moneyplus card
  • Corporate gift card
  • Axis Bank Prepaid Credit Card

Gold credit card

High income individuals can get a Gold Credit Card from any bank in India. Applicants must have a good credit score for any type of gold credit card. Common features of Gold Credit Card are

  • High cash withdrawal limit
  • Higher credit limit
  • Add-on card facility for family members like spouse, parents or children
  • Travel Insurance Cashback Offers Rewards Programs and more

Silver credit card

Silver Credit Card can be availed by anyone who falls under the nominal salary range and has work experience of around 4 to 5 years. It is easy for salaried employees to get this type of credit card, provided they have a good credit history. These cards have low membership fees and no interest on balance transfers for the first 6 to 9

Classic Credit Card

Classic credit cards come with features like global acceptance, revolving credit, cash advances, interest-free credit periods, rewards programs, complimentary cards, insurance and a dedicated 24/7 customer service helpdesk for customers. Most classic credit cards have no annual fee or joining fee and are offered with low finance fees.

The top classic credit cards available to customers are

  • Union Bank Visa International Classic Credit Card
  • Syndicate Bank Global Classic Credit Card
  • IndusInd Bank Classic Credit Card
  • Indian Bank Global Classic Credit Card
  • IOB Classic Credit Card
  • Canara Bank Classic Visa Credit Card
  • PNB Global Classic Credit Card
  • Vijaya Bank Visa Classic Chip Credit Card
  • RBL Bank Classic Shopper Card

Titanium credit card

Titanium credit cards are premium cards that come with a host of privileges and benefits. The main feature of the Titanium Credit Card is the Titanium Rewards Program that is offered to the customers. This rewards program includes accumulation of reward points, redemption for gifts and air miles, cashback offers etc. Other privileges that come with any Titanium Credit Card are surcharge waiver, revolving credit, interest free credit period, annual fee reversal, insurance, welcome gift. In the form of vouchers from top retail brands, add-on card facilities, wellness and beauty offers, lifestyle and dining benefits etc.

Some popular Titanium credit cards are

  • Tata Titanium Card
  • Tata Croma Titanium Card
  • BOB Titanium Master Credit Card
  • Central Bank of India Titanium Credit Card
  • LIC Titanium Credit Card
  • Axis Bank Titanium Smart Traveler Credit Card
  • Standard Chartered Super Value Titanium Credit Card
  • RBL Titanium Delight Card
  • HDFC Titanium Times Credit Card
  • HDFC Titanium Edge Credit Card

Platinum credit card

Platinum Card is one of the most popular credit cards and is owned by many people due to its many benefits and privileges. Benefits include lifestyle, dining, shopping and entertainment offers etc. The annual, joining and renewal fees for the Platinum Card are slightly higher than other types of credit cards.

Each Platinum Credit Card comes with an extraordinary welcome package, gift vouchers from retail brands, annual spending rewards, accelerated rewards points, cashback offers, Priority Pass membership with access to premium airport lounges, renewal gift vouchers, global lifestyle and golfing privileges, Comes with easy cash. Withdrawals, fuel surcharge waiver, add-on cards for family, emergency card replacement services etc. Platinum card members usually also get other special privileges, deals and offers with each card, depending on the financial institution they are banking with.

Some popular platinum credit cards are

IndusInd Bank Platinum Select Credit Card
IndusInd Bank Platinum Aura Credit Card
SBI Advantage Platinum Credit Card
SBI BMB Platinum Credit Card
Bank of Maharashtra SBI Platinum Credit Card
Tata Platinum Card
Tata Croma Platinum Card
Oriental Bank of Commerce SBI Platinum Credit Card
Karur Vysya Bank SBI Platinum Credit Card
Federal Bank SBI Platinum Credit Card
Standard Chartered Platinum Elite Credit Card
HSBC Bank Platinum Credit Card
IDBI Aspire Platinum Credit Card
IDBI Imperium Platinum Credit Card
BOB Platinum Visa Credit Card
BOB Platinum Master Credit Card
BOB Platinum Assure Credit Card
Axis Bank Platinum Credit Card
Axis Bank Pride Platinum Credit Card
SBI Platinum Card
IndusInd Bank Platinum Credit Card
Standard Chartered Landmark Rewards Platinum Credit Card

How does a credit card work?

Eligible cardholders can apply for a credit card from any financial institution. The card issuer will review your credit history, income and other factors to determine if you qualify for a credit card and what your credit limit will be. Once your application is approved, the issuer will provide you with a credit limit.

You cannot transact more than this credit limit, however, if you are not satisfied with the existing credit limit you can request a limit increase from your card issuer. Now when it comes to using a credit card to make purchases, keep in mind that for each transaction you are essentially borrowing money from the credit card issuer. The issuer makes the payment to the merchant on your behalf and you receive a bill for the outstanding amount. You can check your credit card bill through net banking. Note that the card issuer will charge you interest if you do not pay the outstanding amount.

Credit cards can be divided into categories based on their type such as cashback credit cards, reward credit cards, fuel credit cards, travel credit cards etc.

What are the advantages and disadvantages of credit cards?

Everyone uses credit cards in their daily life. However, they also have some advantages and disadvantages. Let’s read more about the advantages and disadvantages of credit cards.

Benefits of credit card

Easy access to credit: One of the major reasons for having a credit card is to get easy access to credit. These cards work on a deferred payment basis, which means the user uses the money during the purchase and pays it back later. Plus, it’s not linked to your bank account, so no money is taken out of anyone’s account every time you swipe.

EMI facility: If you want to buy an expensive item like a refrigerator or smart television today, then credit card will be very beneficial. You buy goods outright with a credit card and then pay in installments. This way your savings will not be affected.

Building a credit score: Having a good credit score is essential, especially if you want to take a loan from a bank. When you use your credit card for purchases and then repay the money spent, your credit score increases, showing that you repay debts on time and have the income to repay them.

Records of Expenses: Keeping track of expenses is a major feature and benefit of having a credit card. The credit card issuer keeps track of all the transactions you make using the card. This way, they can prepare the repayment bill before the regular date. Apart from this, you will also know where and when you have spent the money.

Shopping Safety: If you are afraid of online transactions, use a credit card instead of a debit card. If you use a credit card and something goes wrong, like stolen or damaged merchandise that was shipped to you, you get a loss claim faster. Additionally, if you find the purchase website fraudulent, you can ask the bank to immediately cancel or block the transaction from them.

Incentives and Offers: Financial institutions design these credit cards to provide maximum benefits and incentives to their customers. These come in the form of redeemable reward points and gift vouchers or subscription to premium features.

Flexible Credit: Credit cards come with interest free periods. During this period, any interest is charged to the cardholder. This period ranges from 45-60 days, and cardholders can opt for short-term credit if they pay off their balance on time.

Disadvantages of credit cards

Easy to overuse: The biggest disadvantage of using a credit card is that one can easily overuse it. Since you don’t have to pay the fees right away and there’s no immediate impact on your savings, you can use the card on nonessential things. This will definitely leave you in debt.

High interest rates: If a cardholder fails to pay the dues on time, the bank will carry the amount to the next month, charging a higher interest rate. Additionally, credit cards have high interest rates. They start at 3% and can go up to 36% per year.

Hidden costs: Credit cards have many hidden charges such as joining, annual, processing, late payments etc. Therefore, you need to know all the charges before applying for a credit card.

Minimum Due Net: When credit cardholders receive a bill, they see the minimum due statement. Most people think that this is the amount they have to pay back to the bank. However, this is the minimum amount they are expecting you to return. Therefore, if one wishes to continue availing loan facilities, one has to pay more than the minimum payable amount.

Credit Card Fraud: In today’s era, many people have become victims of credit card fraud. People can easily clone someone’s credit card information when the cardholder conducts online transactions.

Do’s and Don’ts for Credit Cards

If you follow certain do’s and don’ts of credit cards, you can use it without incurring any debt.

  • Be aware of your due dates
  • Check your monthly statements
  • Pay more than the minimum due every time
  • Contact creditors to negotiate APR
  • Keep your payment around 10% of your income
  • what not to do
  • You should not use the entire credit amount
  • If you are having trouble paying off your debt quickly, never use a rewards credit card.
  • Do not use debt as a substitute for income
  • Never miss a payment beyond the grace period
  • Do not carry balance from one month to the n

Conclusion : Last words

Owning a credit card can be a great tool for building credit. However, you should use it wisely as you may end up with huge debts if you overspend. You should also read all the terms and conditions presented by the financial institution before applying for the card.

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