Read Here to Learn the Different Types of Credit Cards in India

Read Here to Learn the Different Types of Credit Cards in India


The credit card market has considerably grown over the years, and now there are various distinct kinds of credit cards available. While the core function of each credit card is similar, every credit card type comes with varied benefits and features. 

Check out the various options available to you – 

Basic credit card

Basic credit cards are easy to avail of and are beginner friendly. However, it endows you with a meagre credit card limit based on your income. With the credit card, you can make spends and purchases on your daily transactions and earn additional benefits in the form of reward points. They are best matched for you if you want to try using the card for specific months before expanding your credit portfolio. 

A few of the features of this kind of credit card include the following – 

∙       Low or negligible annual charges

∙       Low credit card limit

∙       Minimal reward points

∙       Secured credit card

∙       Simple terms & conditions

It might be challenging to avail of a credit card if you hold a no or poor credit history. However, secured cards can assist you here as they are generally issued against the deposits that you make with the issuing card issuer. This makes them the perfect choice for you if you are trying to form a good credit score. Additionally, you even can earn interest on your deposit simultaneously. Note that all credit card issuers may, it Axis bank credit card or HDFC bank credit card or ICICI bank credit card, provide you with the option of opting for the basic version of a credit card. 

Read on to learn the top features and benefits of a secured credit card – 

∙       Just issued against security or collateral

∙       Credit card limit equal to the amount shown as a deposit

∙       Low joining charge

∙       Fairly decent reward programme

Rewards credit cards

Such credit cards offer reward points for every rupee that you spend on eligible purchases and transactions. For example, you might earn 2 reward points for spending every Rs 100 on online shopping. Reward points that are accumulated can later be redeemed to buy goods or services from the preexisting catalogue formed by the issuer. So, you might earn even with every expenditure. 

A few of the popular features and benefits of reward credit card involve – 

∙       Waiver on the annual charges in the case the spending exceeds a specific limit

∙       Reward points on the eligible expenditure

∙       Additional bonus for the expenditure exceeding the threshold

∙       Simple to redeem the accumulated reward points

Cashback credit cards

As suggested by the name, cashback cards tend to provide a percentage of expenses as cashback made through the card. The cashback might just be provided in a specific category. Thus, ensure to check out the details before you place an application for any kind of credit card. The percentage of money that you gain even differs from one credit card to another and from one spending category to another category. 

Read on the know some of the major features and benefits of this kind of credit card – 

∙       Assurance of money back on a specific eligible expense. 

∙       Welcome benefits if you are a new credit card user

∙       Additional reward points on specific expenditures

∙       Waiver on the fuel surcharge at the chosen petrol stations

Travel credit card

Travel credit cards are a match for you if you are a frequent traveller. So, such credit cards hold many advantages if you regularly catch a flight for vacation or work. They provide rewards in the form of air miles for every mile you fly. Then, you can redeem the accumulated air mile for flight tickets. Additionally, travel credit card provides various beneficial features. 

Here’s a quick look at a few of the major features and benefits of opting for a travel credit card – 

∙       Comprehensive travel insurance available

∙       Low FOREX markup

∙       Complimentary access to international and domestic lounges every year

∙       A specific number of complimentary flight tickets available every year

Premium credit card

As the name suggests, such credit cards are available to the cream category as their eligibility criteria are extremely strict. Such cards offer a premium to top-class benefits. 

Few of the major benefits and features of opting for a premium credit card – 

∙       Co-branded credit cards

∙       High annual charges

∙       Personal relationship manager

∙       Concierge services

∙       Complimentary accessibility to airport lounges and golf clubs

Issuers issue co-branded cards in partnership with high-end brands in distinct sectors and industries. Issuers tie up with such brands to promote themselves and, in association with the brand, provide you with higher reward points, cashback and discounts on every transaction. A few of the premium credit cards include the Axis Bank Privilege credit card, HDFC Bank Infinia credit card, SBI Aurum credit card, Axis Reserve credit card, Citi Prestige credit card, IndusInd Bank Legend credit card, HDFC Diners Club Black credit card, Standard Chartered Priority Visa credit card, etc.  

Some of the important features and benefits of co-branded cards are – 

∙       Business credit cards

∙       Usually accepted internationally

∙       Waiver of fee on spending over the specific threshold

∙       Exclusive discounts and rewards from brand partner

∙       Ideal for constant shoppers with high lifestyle expenditures

Business credit cards

Issuers typically issue such cards to businesses or companies who are looking to make it simpler and easier for their staff and employees to pay business-linked expenditures. Generally, such cards are used for work-linked flight booking, regular commuting expenses and accommodation expenses. Not all employees get such cards. It is majorly offered to those employees who attend meetings outside and travel for work on a daily basis. 

A few of the major features and benefits of using a business credit card are – 

∙       Loyalty points for the constant spends

∙       Easier segregation of the business expenditures

∙       Cashback and rewards on eligible expenditures

∙       Responsibility for the card rests with the company instead of the card user

Ending note

Well, now that you are aware of the distinct kinds of credit cards present in India, you can make a better decision about the type of credit card you want to avail of. Note that you can opt for more than one type of credit card in your portfolio. Thus, if you are eligible to avail of multiple credit cards and opting for them may benefit you, then you must apply for them.

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