Financial institutions that provide credit cards often tie-up with various organizations to offer extra benefits to their customers. Such associations create different types of credit cards, tailor-made for different users and their unique spending patterns.
These credit cards come packed with exciting loyalty programs, attractive interest rates, interest-free periods and many other advantages for a borrower.
Types of Credit Cards in India
Credit cards can be divided into a few different categories depending on their type and returns, viz.
- Unsecured Credit Cards
- Prepaid Credit Cards
- Secured Credit Cards
- Balance Transfer Credit Cards
Let’s take a look at these different types of credit cards and discuss the various features they have to offer.
1. Unsecured Cards
Unsecured credit cards are probably the most common credit cards available in the market. It allows you to make a purchase as credit and pay it later along with a certain amount of interest.
Unsecured credit cards come with various reward programs and offer to entice a customer to use that card for all purchases. You can choose a card depending on the reward programs to earn the maximum benefit.
#1. Regular credit card
A regular credit card provides unsecured credits for various purchases. These cards also come with reward programs that offer a certain number of reward points whenever you use it. Typically, these offer 1 point for every Rs. 100 spent on everyday purchases, and 2 points for every Rs. 100 spent on online shopping.
#2. Cashback cards
These credit cards revert a percentage of the money whenever you use it for an eligible purchase. Most financial institutions tie-up with certain vendors to provide cash-back offers to their customers.
#3. Travel reward cards
You can avail of various discounts and additional services on airlines, hotels, and other ticket bookings with travel reward cards. The reward points can also be redeemed for additional benefits.
#4. Fuel cards
These types of credit cards offer discounts, waivers and reward points when you purchase fuel with them.
Various financial institutions all across India offer these specialty cards. You can also opt for a card that offers all these facilities in one. Bajaj Finserv RBL Bank SuperCard is an excellent example of a credit card that merges all the benefits in one package.
It is a combination of 4 cards in one, offering the convenience of an EMI card, loan card, cash card, and credit card in one. It offers 6 variants, viz.
- Platinum Plus SuperCard
- Platinum Plus First Year Free SuperCard
- World Prime SuperCard
- World Plus SuperCard
- Platinum Choice SuperCard
- Platinum Choice First Year Free SuperCard
SuperCard brings various industry-first benefits to its users. You can use it to collect money from an ATM without any interest for up to 50 days, get an emergency loan on the available cash limit, even save up to Rs. 55,000 a year from various purchases.
You will also enjoy complimentary airport lounge access and fuel surcharge waiver when you use a SuperCard. You can go ahead for the free credit card apply process (opens in a new tab/window).
On top of that, Bajaj Finserv provides pre-approved offers for credit cards, personal loans, business loans, home loans, and a range of other financial products and services. Such offers simplify the process of availing finances and help you save time. You only have to provide some essential details online to check your pre-approved offer.
2. Prepaid Cards
Prepaid credit cards carry a certain amount of money which acts as its limit. These cards are favorite substitutes for gift cards or cash. Multiple financial institutions also tie-up with various healthcare institutions and provide such cards that can be used to pay bills.
Prepaid credit cards are also a popular choice among travelers who do not want to carry hard cash and have a specific spending limit.
3. Secured Cards
Financial institutions offer secured credit cards to individuals who have a lower than recommended credit limit and have a fixed deposit in their organization. These cards generally come with a lower or same credit limit with that of the fixed deposit. The fixed deposit acts as collateral against one’s expenses.
A secured credit card is an excellent way to improve or build a strong credit score.
4. Balance Transfer Cards
Balance transfer credit cards allow you to transfer debts to that credit card account. These generally come with a 0% interest rate for a stipulated period to help a borrower climb out of the fiscal deficit.
These are major types of credit cards (opens in a new tab/window) available in the Indian market today. As a borrower, consider doing a thorough research of all the available options to find out which card best meets your requirements.
Guest Author: Arjun | Featured Image: Finance Sage