Did you know 103.3 million credit cards were used in India in May 2024? It is an astounding 18% increase over the prior year, demonstrating the credit card market’s explosive growth and the nation’s growing trend toward cashless transactions.
Credit cards are financial instruments that allow consumers to borrow money for payments, purchases, or cash advances. While all credit cards will enable you to borrow money, each card has unique benefits. Different types of cards are tailored towards different lifestyles and goals. Credit cards might provide exclusive benefits, such as travel perks and reward bonuses, insurance coverage, and entertainment privileges.
Let’s explore the different types of credit cards available in India so that you can pick one that complements your unique lifestyle needs and financial goals.
Types of Credit Cards
There are various types of credit cards available in the market. The most helpful credit cards are:
1. Reward credit cards
In India, rewards credit cards are among the most widely used choices. These cards offer reward points for each transaction, which can be redeemed for various perks such as discounts, gifts, or vouchers. They are perfect if you regularly use them for travel, dining, and shopping.
2. Cashback credit cards
Cashback credit cards enable you to receive cashback for some purchases. These cards benefit from regular costs like fuel, groceries, and utility payments, which can save money on in-person and online purchases. Also, certain cashback credit cards even provide cashback for EMI purchases.
3. Travel credit cards
Travel credit cards are intended for frequent travellers as they offer free lounge access, hotel discounts, and air miles. These cards are suitable for fulfilling your needs whether you travel domestically or overseas for business or pleasure. Discounts on hotel reservations and travel insurance are frequently added options.
4. Fuel credit cards
Fuel credit cards lower the price of vehicle refuelling. These cards provide discounts or rewards on fuel purchases and frequently waive the fuel levy at participating petrol stations. Regular drivers who spend much on fuel would benefit significantly from these cards.
5. Business credit cards
Business credit cards are designed specifically to assist entrepreneurs and business owners in effectively managing their company’s expenditures. These cards come with benefits like increased credit limits, the ability to monitor and control business expenses, and rewards for buying office supplies or taking trips. They greatly help small and medium-sized business owners.
6. Premium credit cards
Premium credit cards are designed for high-net-worth customers and provide luxury advantages, including concierge services, unique event invitations, and premium rewards. Some perks you can enjoy with premium credit cards include access to incredible airport lounges, free golf outings, and exclusive travel and dining deals.
7. Shopping credit cards
Shopping credit cards are an excellent option for shopping online and in physical stores. These cards offer reward points, discounts, and rebates for transactions made on affiliated websites or physical stores. When making large purchases, they frequently provide free EMI options.
8. Secured Credit Cards
Secured credit cards, backed by a fixed deposit, are an excellent choice if you have no credit history or low credit scores. These cards offer a credit limit depending on the fixed deposit amount and assist users in establishing their credit history. They are perfect for students, first-time credit card users, and people repairing their credit because they don’t demand proof of income.
9. Lifestyle Credit Cards
Lifestyle credit cards provide numerous rewards in various categories, such as dining, entertainment, shopping, and travel. These are the best choices for advantages that align with your daily requirements. Free movie tickets, eating discounts, and reward points on a range of lifestyle expenses are typical benefits these cards offer.
10. Student Credit Cards
Student credit cards are intended to meet students’ financial needs and teach them how to manage their money. These cards usually reward travel, book purchases, and low interest rates. Proof of income is not usually required for student credit cards.
Final Thoughts
Selecting the credit card that best fits your financial goals can be easier if you are familiar with the kinds of credit cards offered in India. Regardless of your preference for rewards, cashback, or premium benefits, a credit card can be tailored to meet your needs.
Do you have any plans to apply for a credit card? Check your Cibil score with Tata Capital, which improves your chances of getting loans and credit cards with advantageous terms and also helps you maintain your financial health.
Visit Tata Capitals’ website or download the app for additional information.
FAQs
There are four different types of credit: revolving credit, charge cards, installment credit, and non-installment or service credit.
The three common types of credit cards are Credit building cards, Low-interest Balance transfer cards, and Reward credit cards.
The four main credit cards are Mastercard, Visa, American Express and Discover.
20 February 2025
4 mins read
Previous Post
