When it comes to credit cards in India, there’s absolutely no dearth of options to choose from. As a matter of fact, there are many different types of credit cards too. Usually, credit cards are classified according to the kind of benefits that they offer. If you’re unaware of the different credit card types available today, then here’s something that can help you out.
The following are classified as Credit Card types – cashback credit cards, shopping credit cards, fuel credit cards, travel credit cards and rewards credit cards. Let’s take a look at them one after another.
One of the most popular credit card types in India is a cashback credit card. These cards offer a particular percentage of the amount that you spend on specified transactions such as grocery spending, ticket bookings, dining, and online shopping as cashback.
For instance, if a card provides a cashback of 5% for online shopping and if you spend around Rs. 1,000 on an e-commerce website, you will receive Rs. 50 as cashback. That said, the percentage of cashback and the kind of transactions covered tend to vary from one card to another.
Designed for individuals who use their credit cards for shopping, these kinds of credit cards offer a wide range of rewards, offers, and discounts for using the card to shop online or offline. That said, the rewards that you receive and the type of transactions that are eligible are dictated by the type of shopping credit card that you opt for.
That’s not all. Depending on the card, you may even be eligible for accelerated reward point accumulation when you shop at certain specific merchants.
Of late, due to the increase in fuel prices, such credit cards are becoming quite popular. Fuel credit cards are designed to help you reduce your fuel expenses by providing you with rewards such as cashback on fuel spending, free fuel on reaching spending milestones, and fuel surcharge waivers.
However, fuel credit cards are usually co-branded cards, which means that the rewards on fuel transactions would only be available if you happen to use the card to purchase fuel from the specified fuel retailer.
If you’re an individual who travels frequently, then travel credit cards are the ones that you should opt for. When you use your travel credit card for certain specified transactions such as flight bookings, you get to accumulate air miles.
These air miles can then be redeemed by you at a later point in time to get exciting discounts, offers, and even free air tickets. That’s not all. Such credit cards also come with complimentary airport lounge access, discounts on bus, train, and flight bookings, and hotel bookings, among others.
Another one of the most popular credit cards in India is the rewards credit card. These cards are designed to offer reward points for certain specified transactions that you make such as grocery spending and online shopping. The reward points that you accumulate can be redeemed by you in exchange for offers and discount vouchers from select merchants.
You also stand to accumulate accelerated reward points for certain specific transactions as well. The transactions that are eligible for reward points and the quantum of rewards tend to vary from one card to another.
So there you have it. These 5 credit card types explained above are among the most widely applied in India. That said, before you apply for a credit card, always remember to check the eligibility criteria to determine if you’re eligible to apply for it. This way, you can prevent your application from being rejected later on.
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