All you need to know about different types of credit card in India
What are Credit Cards?
A credit card is a financial tool that allows customers to borrow money. The customer uses borrowed money to buy goods and services up to a specific limit. The customer repays the funds at the end of each month.
If you want one, know about the various types of credit cards available in the market. Choose a credit card according to your need.
The different types of credit cards include
- Fuel Credit Card
- Travel Credit Card
- Business Credit Card
- Entertainment Credit Card
- Platinum Credit Card
- Balance Transfer Credit Card
- Credit Card for Women
- Virtual Credit Card
Read on to understand these different types of credit cards in detail.
8 different types of Credit Cards
- Fuel Credit Cards: For every transaction, you earn some reward points. These reward points are the fuel points that can be used for refuelling. Moreover, banks offer cashback and free fuel offers.
Benefits:
- You can use these fuel points for extra petrol
- You also get activation bonuses
- You can also get entertainment benefits, dining offers, hotel and wellness offers, etc
- These cards are most useful for daily train and metro commuters
Some Fuel Credit Cards are:
- IndianOil Citibank Platinum Credit Card
- IndiaOil Citibank Titanum Credit Card
2. Travel Credit Cards: Travel credit cards allow you to enjoy travel benefits. Every time you book travel through these cards, you get a chance to win travel points for your next trip.
Benefits:
- You can redeem these for your hotel stay
- These cards also offer some non-travel-related benefits
- You can avail the benefits of travel credit cards not only in India but also abroad
Some Travel Credit Cards are:
- JetPrivilege IndusInd Bank Odyssey Credit Card
- JetPrivilege HDFC Bank World Credit Card
- Citibank PremierMiles Credit Card
- Standard Chartered Emirates Platinum Credit Card
- Business/Corporate Credit Cards: Businesses, corporates, or financial institutions use business credit cards to separate their personal and business expenses. Moreover, the company allows its employees to enjoy the benefits of a credit card.
Benefits:
- The benefits of using corporate cards include hotel stays and travel deals
- You can get insurance, discounts on fuel, and a free airport area
- You also get business savings plans, expense management, etc
Some Business Cards are:
- HDFC Corporate Platinum Credit Card
- SBI Platinum Corporate Credit Card
- Kotak Corporate Platinum Credit Card
- Axis Bank MY Business Credit Card
- Entertainment Credit Cards: The entertainment credit card is the most enjoyable. Using these cards gives you discounts and rewards for entertainment purposes.
Benefits:
- Every time you swipe, you earn a cashback or a “buy one, get one free” deal
- You can use rewards or discounts on other purchases, such as movie tickets and concert tickets
- They are also beneficial for amusement park tickets and other events
Some Entertainment Credit Cards are:
- Kotak PVR Gold Credit Card
- Kotak PVR Platinum Credit Card
- HDFC Titanium Times Credit Card
- Platinum Credit Cards: It is the most useful card, as it gives you many privileges and offers. But, this card’s annual, joining, and renewal fees are higher than other types of credit cards in India.
Benefits: Use Platinum credit cards for lifestyle, shopping, dining, and entertainment offers. Besides, these cards offer gift vouchers, accelerated cashback, reward points, and much more which add to the merit of having it.
Some Platinum credit cards are:
- IndusInd Bank Platinum Select Credit Card
- SBI Advantage Platinum Credit Card
- Tata Platinum Card
6. Balance Transfer Credit Cards: If you have a high-interest credit card in your hands and it is difficult for you to pay the debt, you can transfer the available amount into the Balance Transfer credit card. This will make it easier to pay off debts.
Benefits: Balance transfer credit cards have low-interest rates. The low-interest rates will make it easy to clear debt payments. Some banks offer an introductory 0% interest rate on this credit card.
Some Balance Transfer credit cards are:
- ICICI Bank Balance Transfer Credit Card
- SBI Balance Transfer Credit Card
- HDFC Balance Transfer Credit Card
- Credit Cards for Women: Some banks design credit cards only and especially for women. These cards offer special benefits for women.
Benefits:
- Every time you make a transaction using this credit card you can get shopping vouchers and reward points
- You can also enjoy fuel points, bonus reward points, insurance benefits, etc.
Some credit cards for women are:
- HDFC Bank Solitaire-Premium Women’s Credit Card
- Kotak Mahindra Bank’s Silk Inspire Credit Card
- Citibank Rewards Credit Card
8. Virtual Credit Cards: A Virtual Credit Card (VCC) is the most convenient type of credit card because it provides easy transactions and security. Virtual credit cards have an online existence and are useful only for online transactions.
Benefits:
- Virtual credit cards have no physical existence. That is why there are lesser chances of fraud
- They make sure online transactions are easy and safe
- The CVV(Card Verification Value) of these cards remains the same all year
Some Virtual Credit Cards are:
- HDFC Bank Netsafe Card
- ICICI Bank Virtual Credit Card
- SBI Virtual Credit Card
Conclusion
There are different types of credit cards in India that give different benefits. Before applying for one for yourself, read about the benefits and rewards offered. But, there are Terms and Conditions applicable on these credit cards. Go through them and choose the best one for yourself. In case of any doubts, consult a financial expert like Piramal Finance and get easy and customised credit cards and personal loan solutions.