What are the Different Types of Credit Cards

Credit cards have become a significant financial and lifestyle tool in today’s world as they offer convenience, flexibility, and numerous benefits to users. In India, the credit card market has witnessed substantial growth in the last couple of years with a wide range of options available to cater to diverse consumer needs. Today, you can sign up for a variety of credit cards and have your financial issues resolved. However, it is also important to understand the different types of credit cards that you can avail yourself of.

Understanding the limitations and advantages of these different kinds of credit cards is crucial for making informed choices and maximising your benefits. So, let’s move on and look at the various types of credit cards available in India. With this article, you will get an overview of all types of credit cards and learn their merits and demerits.

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Types of Credit Cards

Standard Credit Card

One of the basic types of credit cards offered by banks is the standard credit card that you might own. It allows users to make purchases and pay the balance over time. It usually has a predetermined credit limit based on the user’s income and credit history. Standard credit cards may offer features like reward points, cashback, and discounts on specific purchases.

Rewards Credit Card

Another kind of credit card available for consumers in India is the Rewards credit card. Well, this is one of a kind and is designed to reward cardholders for their spending. These cards offer reward points on every purchase which later on can be redeemed for various benefits such as discounts, cashback, or vouchers. Reward credit cards often have higher annual fees but provide greater value for those who frequently use their credit cards for payments.

Cashback Credit Card

As the name suggests, cashback credit cards provide users with a percentage of their spending as cashback. The cashback is typically credited to the cardholder’s account or can be redeemed against the outstanding balance. These cards are extremely beneficial to you if you are someone who prefers receiving cashback over other types of rewards.

Travel Credit Card

One of the most popular types of credit cards in the world is the travel credit card which is ideal for frequent travellers. These are the credit cards that offer benefits such as hotel discounts, lounge access, and travel insurance to users. Cardholders may also earn air miles or reward points for their purchases which can be redeemed for flight tickets, hotel stays, or other travel-related expenses.

Fuel Credit Card

Do you frequently purchase fuel? If yes, then the fuel credit card is the one for you as it is specifically designed for consumers like you. These cards offer cashback or reward points on fuel purchases made at specific fuel stations. Some fuel credit cards may also provide discounts on fuel prices. These cards are a good option for those who spend a significant amount on fuel expenses.

Shopping Credit Card

Of course, this would be a favourite amongst shopaholics as shopping credit cards are perfect for individuals who enjoy shopping. Just like some of the other types of credit cards, these cards offer discounts, cashback, or reward points on purchases at various partner stores or online platforms. Shopping credit cards may also provide exclusive offers and access to sale events, thereby, making them an attractive choice for avid shoppers.

Premium Credit Card

Premium credit cards are designed for high-income individuals and come with enhanced features and privileges. These cards offer higher credit limits, exclusive services, access to airport lounges, golf club memberships, and other luxury benefits. However, you must note that these credit cards usually have higher annual fees and stricter eligibility criteria.

Business Credit Card

Credit cards catering to the needs of small business owners and entrepreneurs are business credit cards. They offer features such as expense tracking and customised spending reports, which in turn, help business owners set their expenses right. Business credit cards also provide rewards and discounts on business-related expenses such as office supplies, travel, dining, etc.

Secured Credit Card

If you are someone who has a limited or poor credit history, then you can sign up for a secured credit card. These credit cards require a security deposit that acts as collateral against the credit limit. It can be helpful for credit card users in building or rebuilding their credit scores. Moreover, with responsible use, they can eventually upgrade to other unsecured credit cards.

So, these were some of the significant kinds of credit cards that help users in various ways. Need any of them? Sign up for the Airtel Axis Bank Credit Card to avail special deals and exclusive offers on shopping, travelling, business & more.