According to RBI’s reports, India witnessed an addition of around 9.5 million credit cards to its payments market between May 2019 and April 2020. Such data typically indicates the increasing popularity of this financial product.
The reason behind this progression is the convenience that credit cards offer. It eliminates the need for carrying cash and offers improved flexibility of use. Additionally, different credit card types further increase customer convenience. The availability of these cards helps individuals to find payment options that are tailor-made to their specifications. Here’s a quick look at the different credit card variants one can go for in the present financial market.
7 Different types of credit cards
Here is a list of credit card types that you should know about before opting for one –
- Travel credit cards
A payment card of this genre focuses on offering better discounts on travel spending like hotel and airline ticket bookings. When the credit limit is used for such purposes, you can receive accelerated reward points, air miles, and other attractive offers. Reward points so collected can be redeemed for additional savings on your future transactions. You can also use them for regular shopping and earn decent reward points.
- Fuel credit card
Similar to a travel credit card, this sub-type offers accelerated reward points on fuel purchases. You can also save a substantial amount on fuel purchases through available fuel surcharge waivers on specific transaction values.
- Shopping credit cards
Particularly curated for the enhanced shopping experience of users, these types of credit cards in India multiply the reward earning potential for every purchase you make, both online and offline. With some cards, online shopping is typically incentivized with 2X reward points.
Moreover, credit card issuers often partner with various brands to offer card users accelerated reward points, cash back’s, and exclusive discounts.
- Brand-specific or promotional credit cards
These credit cards are curated in partnership with select brands and offer similar benefits as under a regular credit card. Nevertheless, you get various additional benefits when you use them to avail services of those particular brands. There are often provided as multiplied reward points, better discounts, and many more.
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- Secured credit cards
If you are struggling to manage your CIBIL score, you can easily avail and use this credit card to improve your credit score. Usually, these payment cards are available against collateral, and the credit limit is based on the value of the security provided. When compared to a regular credit card, these are available against flexible eligibility terms. Several financial institutions provide these credit cards in India against the fixed deposits as suitable collateral.
- Business credit cards
This credit card type is tailor-made for company use. Typically, companies apply for these payment cards and then allow employees to use them. However, the respective companies are responsible for the repayment of the due amount.
On the other hand, the perks associated with such cards are only reserved for the company, not the employees.
User-friendly cards like all the Bajaj Finserv RBL Bank SuperCard variants enhance user experience with options like EMI conversion, credit card loans, etc.
The introduction of pre-approved offers from the card provider has further streamlined financing, saving valuable time. Along with credit cards, these offers are also available on other financial products like business loans, personal loans, etc. You can check your pre-approved offer by submitting essential contact details.The presence of various credit card types may have spoilt you for choices, but all of them serve specific purposes that make them unique. Therefore, before applying for a credit card, evaluate your requirements, and proceed accordingly. Nevertheless, keep in mind the pointers due to which your credit card application may be rejected to avoid such scenarios.