A credit card is an integral financial tool for many, offering a convenient way to make purchases, earn rewards, and manage expenses. With a growing number of options available, choosing the right credit card can be daunting. Each card type offers unique features that benefit different financial needs and lifestyles.
Travel, lifestyle, business, fuel—name it, and you have it. However, understanding your spending habits, lifestyle, and financial goals is crucial to selecting the ideal credit card. Below are the 15 different types of credit cards in India you can choose from according to your needs.
A regular credit card is the most basic type of credit card in India, ideal for individuals looking for simple features and a chance to build a credit history. Along with convenience and safety, a regular credit card offers benefits like a lower annual charge, reward points, fuel surcharge waiver, and more.
These benefits and competitive interest rates make a regular credit card viable for everyday use and responsible credit management.
A signature or premium credit card is perfect for individuals seeking more than basic features and willing to pay an annual fee for extra benefits. A premium credit card typically offers a higher credit limit, a superior reward program, and exclusive privileges that cater to a more affluent lifestyle.
Premium credit card holders can enjoy complimentary airport lounge access, concierge services, travel insurance, global assistance services, hotel accommodation vouchers, and more. These benefits make a premium credit card an ideal option for frequent travellers.
A super premium credit card is the top-tier credit card in India, offering the most exclusive benefits and privileges. It is typically for high-income individuals with significant spending power who want to enjoy a luxurious lifestyle.
This type of credit card offers all the perks of a regular and premium credit card but with even higher limits and more significant benefits. Cardholders can expect concierge services, access to elite clubs, complimentary luxury hotel upgrades, golf course memberships, personal shopping assistants, and more.
A co-branded credit card is issued in collaboration with a well-known brand or company. It can benefit individuals who regularly use the partnered brand's products or services. Cardholders can enjoy enhanced rewards and save more on their spending.
Credit card companies usually collaborate with brands from various sectors, such as airlines, hotels and accommodations, food delivery apps, shopping, petroleum, etc. One can choose a card that offers multiple benefits and aligns with the company they are a loyal customer of. These benefits can include reward points for loyalty, cashback on purchases made with the partner brand, fee waivers, and more.
Commercial credit cards are ideal for corporations to cover business-related expenses. Businesses, corporations, and other financial institutions can issue commercial or business credit cards for their employees to manage their expenses. However, corporate cards are for business expenses, not personal use, and are only valid until the end of the employment period.
Corporate cards offer travel discounts, expense management, fuel surcharge waivers, access to airport lounges, cash advances, add-on cards, bill payments, and more. They can help companies manage their finances more efficiently and provide extra security for business-related expenses.
A cashback credit card is the perfect option for individuals looking to save a little more money on their daily spending. Cardholders can enjoy a certain percentage of their purchase money back, meaning that every time they make a payment, they earn a cashback.
Another advantage of a cashback credit card is that some come with zero annual fees or travel rewards, depending on the card issuer. One can even use this credit card to avail of discounts on dining and shopping expenses.
A lifestyle credit card caters to individuals who want to get exclusive benefits and rewards for their daily experiences. These cards offer perks that align with the cardholder's interests and preferences, making them a valuable addition to their lifestyle.
With a lifestyle credit card, one can enjoy discounts on dining, entertainment, shopping, travel, and more. Some even provide complimentary airport lounge access and higher reward points.
Travelling is beyond just air travel, and that's where a travel credit card comes in handy. A travel credit card covers journeys, including bus, railway, and cab travel—ideal for frequent backpackers.
No matter the purpose, a travel credit card offers value to every travel-related expense. From ticket bookings and access to the VIP airport lounge to discounts and reward points for future travels, a travel credit card is beneficial and an ideal match for frequent travellers. Some even allow users to earn air miles and complimentary memberships.
Ideal for shopaholics, a shopping credit card can help them manage their expenses while earning rewards or a certain percentage of cashback over a specific limit. The benefits of a shopping credit card may vary across issuers, so it's crucial to double-check the terms and weigh the benefits carefully.
In addition to welcome benefits, discounts on shopping bills, and higher reward points, you must also check for the applicable charges to avoid paying more than you spend.
Though having too many credit cards is not advisable, having the right one for your needs can help you manage your finances. For individuals who spend a significant amount on fuel expenses, applying for a fuel credit card may be the right choice.
Fuel surcharge waivers, extra rewards on additional spending, and savings in the form of discounts are well-known perks of a fuel credit card. These credit cards are co-branded with major companies, offering exclusive rewards to loyal brand customers. Cardholders can redeem these rewards for future expenses, offering additional saving opportunities.
Contactless credit cards have been popular overseas for many years and are now making transactions easier in India. With the impeccable convenience of tap-n-go, a contactless credit card makes transactions more effortless than ever. All you need to do is tap the card at the point-of-sale (POS) terminals and go.
Contactless credit cards eliminate the need to swipe or insert the card or even type in the PIN. These credit cards offer enhanced benefits like discounts, welcome gifts, concierge service, cash rewards, insurance policies, and more.
Although basic credit card rewards are usually common, certain types of credit cards are issued to offer exclusive and more significant rewards on certain purchases. However, to get the most out of a credit card's rewards, it's essential to understand the reward structure and align your spending accordingly.
The rewards structure may vary from card to card, but most rewards credit cards allow users to earn points or cashback on everyday spending. Cardholders can collect these rewards and redeem them against items in the rewards catalogue, such as gift vouchers, air miles, merchandise, travel-related expenses, etc. They can even use these points to reduce their monthly credit card bills.
A prepaid credit card is perfect for budgeting and expense management, as it allows individuals more control over their spending. The limit is based on the amount cardholders add, restricting expenditures. With a prepaid credit card, there is no risk of overspending, debt, or incurring interest.
Even though these credit cards do not offer a line of credit, users can enjoy the same privileges and benefits that any other type provides. The outstanding balance is the amount left on the card after the transaction.
Entertainment credit cards are perfect for individuals who enjoy dining out, watching movies, or attending concerts and events. Some benefits of an entertainment credit card include cashback, discounts, reward points, and even buy-one-get-one-free deals on movie ticket bookings, shows, etc.
Some credit cards are co-branded with entertainment and event brands, offering additional rewards. Others may offer benefits such as dining, shopping, and even travel. Cardholders can earn reward points and redeem them for movie tickets, gift cards, and travel bookings.
For homemakers, small business owners, and self-employed individuals with no regular income source looking for a simplified way to manage their finances, getting a secured credit card could be a beneficial option. While credit cards usually require individuals to have a decent credit score and a certain amount of income to be eligible, secured credit cards require a Fixed Deposit (FD).
Banks usually offer a credit limit against the FD value equal to the amount available, and cardholders continue to enjoy the incurred interest. However, an equivalent amount is deducted from the FD if the payments default. A secured credit card can help individuals gradually build their credit score with timely payments and responsible management.
A credit card is not just a financial tool for instant purchasing power; today, it has specific use cases that match your lifestyle and needs, providing numerous benefits in return. Of all the different types of credit cards highlighted above, choose the one that fits you best.
At Quid, you can find the best credit cards in India from leading financial institutions with an easy application process. Remember, managing your expenses and finances is paramount to reaping the best benefits of a credit card.
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