Different Types of Credit Cards in India
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18 MAY, 2023

Credit cards have been gaining tremendous popularity among borrowers. Much of their popularity stems from easy access to credit with an opportunity to earn rewards. There are numerous types of credit cards in India, and each type comes with specific features and benefits and caters to specific needs. For instance, if you want a credit card that offers maximum reward points and cash backs, Zen Signature Credit Card can best suit your needs.

The features and benefits of credit cards categorize them into different types. You can choose a credit card based on these categories. Here are several types of credit cards in India to help you choose one that best serves your needs.

Types of Credit Cards

  • Basic Credit card

It is a preferred choice for borrowers who are using credit cards for the first time. Your credit limit is determined based on your income, and you can make purchases with the credit limit assigned to you. One such credit is the Best Price Credit Card which offers no joining and annual fee.

  • Secured Credit Card

Borrowers with a poor credit history can apply for a secured credit card. You will need to make a deposit equal to the credit limit of your credit card. The amount you deposit is collateral. Your issuing bank will return your deposited amount if you make repayments on time for a few months. Wealth Management Infinite credit card is the best personalized credit card that offers a higher credit limit.

  • No Annual Fee Credit Card

As the name suggests, when you apply for a credit card with no annual fee, you will not have to pay any fee to the bank for securing a card. You may consider this as a basic credit card. Credit cards like Feast Gold Credit Card are best suited for people who make limited use of credit cards.

  • Low-interest Credit Card

It is a credit card that comes with a low interest rate compared to a regular credit card. Unlike the balance transfer credit card wherein the interest rates are as low as 0% for a specific time, in this category, you will have to incur a lower interest but not as low as 0%. League Platinum Credit Cards offer the best rate available in the market. 

  • Balance Transfer Credit Card

It would be wise to get a balance transfer credit card if you have outstanding dues with high interest rates on your credit card. It enables you to transfer your balances to a new credit card with as low as 0% APR. If you wish to transfer to another credit card, Mojo Platinum Credit Card is your right choice.

  • Reward Credit Card

It is a credit card that offers reward points for every INR you spend with your credit card. The issuing bank decides the number of reward points. For instance, Zen Signature Credit Card offers 15 Zen points and 5 Zen points on every Rs. 150 on KayMall and other spends respectively. You can earn reward points on transactions, such as grocery shopping, online bill payment, etc.

  • Cashback Credit Card

As the name suggests, you can earn a certain percentage of the purchase amount as cashback whenever you make a transaction with your credit card. For instance, you can earn cashback on petrol transactions using your White Credit Card.

  • Travel Credit Card

It is one of the best credit cards in India that comes with benefits such as travel insurance, attractive currency conversion rates,  etc. It is accepted worldwide. For instance, you can use your Royal Signature Credit Card almost anywhere across the world. Besides, you get at least four complimentary airport lounge access.

  • Entertainment Credit Card

When you use your credit card for entertainment-related spending, you get to earn discounts and offers. For instance, you can earn discounts on movie tickets, concert tickets, amusement park tickets, etc. PVR Kotak Gold Credit Card best suits people who have a craving for entertainment.

  • Premium Credit Card

These types of credit cards are offered to a selected few. You can have free access to golf clubs, concierge service, airport lounges, and insurance. Some premium credit cards offer complimentary travel and hotel accommodation coupons. To get this type of credit card in India, you will have to maintain an excellent credit score. One such option at your disposal is Privy League Signature Credit Card.

  • Student Credit Card

It is a type of credit card that allows college students to have access to credit. Since college students do not have a credit history, the criteria to apply for a student credit card are a bare minimum. Best Price Credit Card is one of the best credit cards that come with a lower interest rate and no joining fee.

  • Business Credit Card

It is primarily offered to help business owners manage their business and personal expenditure. To get a business credit card, it is imperative to maintain a healthy credit score. So, if you have an excellent credit score, you may want to apply for the Corporate Wealth Signature Credit Card that comes with a host of features and benefits to avail of.

Follow Steps to Choose the Right Type of Credit Card

  • To select suitable credit card types, check your credit score to determine which cards you are eligible for. You can check your score for free from a credit card issuer or buy it from the three major credit bureaus before.
  • Next, you should determine the card type you need by considering your financial goals. The three main types of cards are credit-building, low-interest, and rewards cards.
  • Finally, compare the different card options and contact the credit card company for inquiries to narrow down your choices and select the card that offers the highest overall value for you.

In short

There are several credit cards available based on your needs and preferences. While searching for the best credit card, it would be wise to assess your needs to make an informed decision.

When selecting a credit card, it is essential to opt for one that aligns with your financial objectives and offers the most cost-effective and efficient solutions. Whether your aim is to improve your credit score, get a loan, or earn rewards, it is crucial not to compromise on quality.

Also Read: Different Types of Credit Card Charges

FAQs on Types of Credit Cards in India

Q1. How Many Types Of Credit Card ae there in India?

A.If you are wondering, “How many different types of credit cards are there,” There are several types of credit cards available in India, including rewards cards, low-interest cards, credit-building cards, fuel cards, women's cards, contactless cards, travel cards, co-branded cards, cashback cards, entertainment cards, business cards, lifestyle cards, and premium/signature cards.

Q2. Which is the best credit card for online shopping?

A.Several types of credit card in India offer excellent benefits for online shopping. The best credit card for online shopping would depend on your specific needs and preferences. It would help to look for credit cards that offer attractive rewards, cashback, discounts, and other benefits on online shopping transactions. It's essential to know how many types of credit card are in the market and compare the features and fees of different types of credit cards and choose the best one.

Q3. Which is the best type of credit card?

A.There are no "best" types of credit card, as the correct card type will depend on your individual needs and spending habits. Some people may prefer different types of cards with rewards programs, such as cashback or travel rewards, while others may prioritize low-interest rates or credit-building options.

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Disclaimer: This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. The Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Article. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from the Bank. The Bank, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein. Tax laws are subject to amendment from time to time. The above information is for general understanding and reference. This is not legal advice or tax advice, and users are advised to consult their tax advisors before making any decision or taking any action.