Understanding the Different Types of Credit Cards in India: Features and Benefits

Different Types of Credit Cards

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Credit cards have become an essential part of our daily lives. They offer us a convenient and efficient way to make transactions and purchases without the need to carry cash. They also offer various benefits like rewards and cashback offers, helping us save money while making payments. In India, credit cards have become increasingly popular, with many banks offering different types of credit cards to cater to different user needs. In this article, we will discuss the different types of credit cards in India, their features, benefits, credit card EMIs, and credit card interest rates.

1. Reward Points Credit Cards

Rewards points credit cards are aimed at those who make frequent purchases using their credit cards. These cards offer points or cashback on each purchase, which can be redeemed for discounts on future purchases or other rewards. The reward points can range from 1% to 5% of the total purchase amount. Some of the popular rewards points credit cards in India include HDFC Bank Regalia, American Express Membership Rewards, and Citibank Cashback.

2. Cashback Credit Cards

As the name suggests, cashback credit cards offer cashback on every purchase. These cards are ideal for people who prefer cashback over reward points. Cashback credit cards offer customers a percentage of the purchase amount back into their account. The cashback rate can vary from card to card, but it’s usually between 1-5%. Some popular cashback credit cards in India include ICICI Bank Cashback, Standard Chartered Super Value Titanium, and SBI SimplyCLICK.

3. Travel Credit Cards

Travel credit cards are aimed at frequent travellers. These cards offer miles or points on each purchase, which can be redeemed for discounts on flights, hotel bookings, holiday packages, and other travel-related expenses. Some travel credit cards offer miles that can be collected and redeemed for comprehensive travel services, including discounted airfare tickets. Some popular travel credit cards in India include SBI Card Elite, Axis Bank Miles and More, and HDFC Bank Diners ClubMiles.

4. Fuel Credit Cards

Fuel credit cards offer cashback or rewards on fuel purchases. These cards are ideal for people who frequently use their vehicles and want to save money on fuel expenses. Fuel credit cards offer a specific percentage of cashback or reward points on fuel purchases made using the card. Some of the popular fuel credit cards in India include Indian Oil Citi Platinum, HDFC Bank Regalia, and Axis Bank Select.

5. Premium Credit Cards

Premium credit cards are aimed at high-income earners and offer various exclusive benefits, including airport lounge access, concierge services, discounts on hotel bookings, golfing green fees, and more. These credit cards come with a high fee and offer premium benefits, making them a lifestyle card for high-flyers. Some popular premium credit cards in India include HDFC Bank Infinia, American Express Platinum Reserve, and Citibank Prestige

6. Business Credit Cards

Business credit cards are aimed at business owners and come with numerous benefits like expense management, higher credit limits, and rewards on business essential purchases. These cards are designed to help businesses with their financial management, save money, and streamline their business operations. Some popular business credit cards in India include American Express Gold Business Card, HDFC Bank Business Moneyback, and SBI Corporate Platinum.

Credit Card EMI

Credit card EMIs help customers make large purchases by converting the cost into monthly instalment payments. With this service, customers can purchase items like electronics, furniture, or appliances without having to pay the full amount upfront. Credit card EMIs allow customers to pay for purchases in small, affordable instalments, making it easier for them to manage their finances. Credit Card EMIs are subject to interest rates, with the interest amount determined by the length of the EMI, the principal amount, and the annual percentage rate (APR) of the credit card.

Credit Card Interest Rate

Credit card interest rates in India vary from bank to bank and depend on the type of credit card. Credit card interest rates are higher compared to other types of loans or credit products due to the unsecured nature of the credit amount. The interest rate on credit cards is calculated based on the annual percentage rate (APR) and is charged on the unpaid balance at the end of the billing cycle. The interest rate can range from 15% up to 42% p.a., based on the credit card type and the bank.

Credit Card Options

When it comes to credit cards, there are myriad options available in the Indian market. The credit card providers offer different types of credit cards, each suited to cater to specific spending patterns and needs of individuals. Here, we will discuss some of the major types of credit cards offered by various credit card providers.

Bajaj Finance Credit Card

Among the new entrants in the Indian credit card market, Bajaj Finance Credit Card has made quite an impression. It caters to the spending needs of individuals in various categories, such as shopping, travel, groceries, lifestyle, etc. Some of the popular credit cards offered by Bajaj Finance are Bajaj Finserv RBL Bank Credit Card, the Bajaj Finserv Platinum Plus Credit Card, and more.

HDFC Bank Credit Card

HDFC Bank is one of the leading players in the Indian credit card market. HDFC Bank offers a range of credit cards, such as HDFC Business Platinum Credit Card, HDFC Regalia First Credit Card, HDFC Moneyback Credit Card, and more. The bank has also collaborated with various companies to offer co-branded credit cards, such as HDFC Bank Diners Club Black credit cards, HDFC Bank Times Credit cards, and more.

SBI Credit Card

State Bank of India is the largest bank in India and also offers a range of credit cards suitable for different purposes. The SBI Credit Cards include SBI Card ELITE, SBI Platinum Card, SBI SimplyCLICK Credit Card, and more. SBI Cards also offer co-branded credit cards in association with various companies like IRCTC, Yatra, Maruti Suzuki, and more.

Visa Credit Card

Visa is a global payments technology company that offers various types of credit and debit cards in association with banks and financial institutions. Visa credit cards include Visa Classic Credit Card, Visa Platinum Credit Card, Visa Signature Credit Card, and more. Visa credit cards are accepted at most merchant locations across the world.

Mastercard Credit Card

Mastercard is another major player in the global credit card industry, offering a range of credit cards in association with banks and financial institutions. Mastercard credit cards include Mastercard Gold Credit Card, Mastercard Titanium Credit Card, Mastercard World Credit Card, and more. Mastercard credit cards offer exclusive rewards, such as cashback, discounts, and more.

Reward Credit Card

Reward credit cards are credit cards that offer reward points for every purchase made using the credit card. These reward points can be redeemed for various products or services. Some popular reward credit cards in India include HDFC Bank Regalia Credit Card, SBI Card PRIME, and more.

Cashback Credit Card

Cashback credit cards offer cashback on every purchase made using the credit card. The cashback is usually a percentage of the total transaction value and is credited back to the credit card account. Some popular cashback credit cards in India include ICICI Bank Coral Credit Card, Standard Chartered Super Value Titanium Credit Card, and more.

Fuel Credit Card

Fuel credit cards are credit cards that offer exclusive rewards and discounts on fuel purchases made using the credit card. These cards are especially useful for those who make frequent fuel purchases. Some popular fuel credit cards in India include the IndianOil Citi Platinum Credit Card, HDFC Bharat Credit Card, and more.

Lifestyle Credit Card

Lifestyle credit cards are credit cards that offer exclusive rewards and discounts on lifestyle-related purchases, such as shopping, dining, entertainment, etc. These cards are especially useful for those who have high spending patterns in these categories. Some popular lifestyle credit cards in India include SBI Card ELITE, ICICI Bank Coral Credit Card, and more.

Co-branded Credit Card

Co-branded credit cards are credit cards offered in association with a company or brand. These cards offer exclusive rewards and discounts on purchases made with the associated brand. Some popular co-branded credit cards in India include HDFC Bank Diners Club Black Credit Card, Amazon Pay ICICI Bank Credit Card, and more.

Travel Credit Card

Travel credit cards are credit cards that offer exclusive rewards and discounts on travel-related purchases, such as flight tickets, hotel bookings, car rentals, etc. These cards are especially useful for those who travel frequently. Some popular travel credit cards in India include Axis Bank Vistara Signature Credit Card, American Express Platinum Travel Credit Card, and more.

Business Credit Card

Business credit cards are credit cards that cater to the spending needs of businesses and corporates. These cards offer exclusive benefits like cashback, rewards, discounts, etc., on business-related purchases. Some popular business credit cards in India include HDFC Business Platinum Credit Card, ICICI Bank Business Gold Credit Card, and more.

Student Credit Card

Student credit cards are credit cards specifically designed for students. These cards offer low credit limits and exclusive rewards and discounts on student-related purchases, such as textbooks, stationery, etc. Some popular student credit cards in India include the SBI Student Plus Advantage Credit Card, HDFC Bank ForexPlus Card, and more.

Balance Transfer Credit Card

Balance transfer credit cards are credit cards that allow individuals to transfer the outstanding balance on one credit card to another credit card at a lower interest rate. These cards are especially useful for those who have high credit card debts. Some popular balance transfer credit cards in India include ICICI Bank Platinum Credit Card, SBI Card Elite, and more.

Secured Credit Card

Secured credit cards are credit cards that require a collateral deposit to be made by the cardholder. The credit limit on these cards is usually equal to the amount of deposit made. These cards are especially useful for those who have a poor credit history or no credit history. Some popular secured credit cards in India include SBI Card Unnati, Axis Bank Insta Easy Credit Card, and more.

Conclusion

Credit cards have become an essential financial tool for many people. They offer various benefits, including rewards, cashback, and convenient payment modes, making them a popular choice for transactions. It’s crucial to understand the different types of credit cards in India, their features, and benefits, to make informed decisions that align with financial goals. It’s also important to be cautious when using a credit card and to ensure that payments are made on time and within the credit limit. Understanding credit cards’ implications is key to maintaining and improving your credit score, making them a useful tool in financial management.

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