Types of Credit Card available in India

Credit Card Types - Find out the different types of Credit Card options available
in India that has various features & benefits to offer based on your needs. Check
out the credit card which provides cash back, reward points, discounts, etc.
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There
are

hundreds of Credit card options available to newbies. Each card has different features and caters
to specific needs. The benefits offered by these cards also vary.
Banks and financial institutions offer a variety of cards. Their Credit limits are different and the
facilities they provide are also different. While some provide cashbacks, others provide reward
points. Then there are those that offer discounts or exclusive access to airport lounge and select
dining facilities.

Before choosing the right Credit card for you must know about these types. Based on your needs
and the benefits on offer, find the right match.

Credit card for women

There are Credit cards which are custom-made for women customers. These Credit cards offer
special discounts across department stores, grocery chains and supermarkets. Women who enjoy
dining out will have an advantage as Credit cards for women have special offers for dining, apart
from other lifestyle products.

While some banks offer rewards on entertainment expenses

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Credit Card against Fixed
Deposit: SBI, ICICI, Axis, Yes Silver Credit cards
Bank

Silver Credit cards are entry-level premium Credit cards.

This means that while the benefits on a silver Credit card may not be as much as those on gold or
platinum Credit cards it has more advantages than a classic Credit card. A silver Credit card is
specifically designed for salaried employees who seek premium rewards. The card usually has
no or low annual fee. It is available to people who have a decent Credit history. The interest-free
periods on these cards range from 25 to 50 days.

Gold Credit cards

Gold Credit cards are premium Credit cards meant for high-income individuals. It is available
only against a good Credit score. These cards have higher Credit limits and allow as much as
100 per cent cash withdrawal limits. They offer higher rewards on purchases and exclusive
access to dining restaurants as well as access to airport lounges. There are cashbacks on travel
and accommodation. Add-on cards can be issued to family members of the primary cardholder
from the same account. Apart from high rewards, a gold cardholder gets cashback offers, reward
points as well as free insurance of travels. Some gold cards are also insured against loss and
theft.
Titanium Credit cards

Titanium Credit cards are also premium Credit cards which offer advantages similar to that of a
gold card. With a titanium Credit card, you can opt for a revolving Credit facility, which means
that your Credit is upgraded as you pay off your debts. Apart from that, Titanium cardholders are
also eligible for the Titanium Rewards Point Program. Members also get insurance coverage and
accident covers. Here, too, the cash withdrawal limits are high. Apart from offering air miles and
cashbacks on purchases of lifestyle products, many Titanium cards come in association with
retailers and merchants, hence, offering discounts at these shops.

Classic Credit cards

These are entry-level Credit cards offered by almost all banks and financial institutions. In most
cases, banks charge no or nominal annual charges. The Credit limits may not be very high on
these cards. These cards are ideal for beginners. They can get rewards and cashbacks on
purchases and keep their Credit score by making timely payments. Among other benefits, these
cards are accepted globally and can be used in any country for purchase of goods and services.
The cards also allow for cash advances to members. Classic cardholders also get waiver on fuel
surcharges and travel insurance with their Credit cards.

Rewards Credit cards

Rewards Credit cards are specifically designed to suit the needs of shoppers. The cardholder
earns rewards points for every purchase. These rewards are basically points gained for shopping
that can be redeemed at the end of the month. These rewards points can be redeemed top
purchase products and goods as specified in the cards. Most rewards Credit cards have tie-ups
with shopping malls or retail outlets. The interest rates on these cards may be slightly higher
than that of other cards. It is issued only to those individuals who have a high Credit score. In
few cases, there are also cash rewards for purchases made using the card. These cash rewards
can help you pay back your Credit.

Business/ corporate Credit cards

Business or corporate Credit cards are for companies and businesses, limited companies, banks,
government-run companies and partnerships. These cards are available to any business—small
or large—that needs an account to keep a track of its expenses. If you have a small business, or a
corporate office, you can have a Credit card for your business. Cards can be held primarily
business head but cards can also be issued to employees. The employer will have the option of
capping monthly Credit limit to control expenses of employees. Payment for multiple cards can
be done at once. There are rewards for expenses on travel, accommodation as well as
entertainment.
Cashback Credit cards

As the name suggests, cashback Credit cards are the ones that offer cashbacks on purchases
made using the card. With these cards you can get cashback returns of anywhere between 5 to 25
per cent. The percentage of cashback is different for each card. Most cashback Credit cards offer
cashback on fuel surcharge. They may also waive off a percentage of the surcharge. Another
benefit of these cards is that the annual fee is adjusted against the cashbacks. Attractive cashback
offers are available on purchase of groceries, movie tickets and payment of bills. There are also
dining privileges at select restaurants that come with a cashback card.

Entertainment Credit cards

As the name suggests, entertainment Credit cards offer discount and rewards on purchase of
entertainment products. You could enjoy offers such buy one movie ticket and get another free.
The cards also have discounts on events around you. There are shopping benefits, rewards to be
won on lifestyle products. Some cards also offer access to golf clubs. There are rewards to be
won on travel bookings. The rewards accrued can be used in turn to buy movie tickets or make
travel bookings.

Lifestyle Credit cards

Most lifestyle Credit cards are premium Credit cards offering benefits in the lifestyle segment.
They are created to fit the needs of individuals whose income and lifestyle changes with time.
The cards give access to golf clubs, exclusive dining privileges in select restaurants as well as
discounts on travel. They also give access to luxury lifestyle privileges and entry into clubs.
There are higher rewards on shopping and travel bookings.

Prepaid Credit cards

These cards are similar to debit cards but with the benefits of a Credit card. The bank lets you
deposit a certain amount in an account. This amount becomes your Credit limit against which
you can swipe the card. Every time you use your card to make a payment, the amount is
deducted from the account. Although there is no Credit issued to the cardholder, there are
privileges and rewards to be accrued through every transaction of the card. As the Credit limit
reduces, you can make a payment and get your Credit limit upgraded again. These Credit cards
are ideal for individuals with low Credit score.

Travel Credit cards

These are Credit cards that offer travel benefits. Travel cards such as the HDFC All Miles Credit
card are usually offered by banks in association with travel websites and airline companies. The
cards offered in association have special discounts and offers for bookings on these airlines and
portals. The cards have benefits such as air miles, access to airport lounges as well as rewards
points. The travel cards are eligible for benefits for travels across the world. Apart from travel,
there are benefits on hotel accommodations as well as holiday packages.

Balance transfer Credit cards

Almost all banks allow customers to transfer their outstanding balance from a Credit card to a
new card. Banks also allow inter-bank Credit transfers. This means that if you have a Credit
balance on your HDFC Credit card, you can transfer this balance to a new Credit card in ICICI
bank. Most people with poor Credit score choose these cards to transfer their Credit and covert
the balance into easy EMIs on lower rate of interest. This gives a fresh chance to the cardholder
to improve her/ his Credit score. It also reduces the debt-burden on the cardholder.

Secured Credit cards

Secured Credit cards, as the name suggests, are issued against a security amount deposited by
the cardholder. Banks let customers, who have poor Credit score, open a fixed deposit and then
issue a Credit card to the customer. The fixed deposit is on lien in favour of the bank, in case you
default on your Credit card. This card is ideal for those have a poor Credit score and are having
difficulty getting a Credit card. The Credit limit is usually a percentage of the total fixed deposit
amount. You can also transfer your Credit balance from another bank Credit card to this one and
convert the Credit into equal instalments. The interest rates on these Credit cards are lower than
that of secure Credit cards.

Subprime Credit cards

A subprime Credit card is meant for individuals who do not qualify for a Credit card under the
market interest rate. These individuals have poor Credit history. It is often known as a second
chance lending. It is a phenomenon started in the United States of America in the 90s. The cards
were meant for those with bad Credit score, loan defaults or even those who were bankrupt. The
Credit limit of these cards is low and interest rates are much higher than the market rates. Few
banks and non-banking finance companies are offering these cards in India.

Student Credit cards

Credits cards issued to college going students are referred to as student Credit cards. These cards
are valid for five years and have very low interest rates. The card is issued to students who are
18 years old or older. These cards have very low Credit limits compared to other Credit cards in
the market. This is to make sure that the student doesn’t fall into the debt trap by overspending.
The customer does not need to submit any income proof to get a student Credit card. Many
banks offer student Credit cards as add-on cards to their parents’ cards. Student Credit cards also
offer deals on shopping as well as food expenses.

FAQs

How do I know which Credit card is best for me?

Different banks offer different Credit cards suited to different needs of customers. You need to
check the features of the cards that you are eligible for. Visit the websites of the banks you are
interest in and check the Credit cards available. Once you know the cards you are eligible for,
you can compare their features and decide which one works the best for your needs.
Which Credit card is best for a beginner?

You must check for the eligibility criteria of each Credit card before you decide on one. Many
banks offer classic Credit cards which work best for beginners. They have a low Credit limit and
a lower rate of interest compared to other cards in the market. There are also rewards Credit
cards and cashback Credit cards that could work for beginners.
How can I get a premium Credit card?

Premium Credit cards are issued to members who have a good Credit score and have not
defaulted on Credits or loans. Premium cards are also issued to people with high income. If you
have a Credit card, you can ensure that your Credit score is well-maintained for at least six
months and apply for an upgrade to a premium card. Or if you fall in the high income category,
you can directly apply. Check whether you are eligible for a premium card before applying.
I am a student. Can I get a Credit card?
Yes. You can apply for a student Credit card. You will be eligible to get a student Credit card
only if you are a college student and are at least 18 years old. You can also ask for an add-on
Credit card which is attached to your parents’ Credit card.