Credit cards make your life easier by allowing you to purchase goods and services and pay the money at the end of the month. Credit cards have a set limit based on your eligibility criteria and, ideally, you should spend only 30% of that amount.
Suggested Reading: Top 10 best credit cards in India
You can either pay the full amount or a minimum due amount each month. Please note that if you pay just the minimum amount, you incur an interest on the remaining due amount.
Various banks and credit card issuers offer different types of cards. So, there is something for everyone based on their spending habits and lifestyle. Here we will explore the different types of credit cards so you can choose one that suits your needs.
Fuel credit cards offer rewards and benefits when used to purchase fuel. As the price of fuel increases, if you own a vehicle, having a fuel credit card can be beneficial. Such cards offer cashback and waive fuel surcharges.
Some banks also provide accelerated reward points on fuel purchases made at specific petrol pumps across India. The accumulated reward points can be redeemed for a predetermined amount of refueling.
The following are some of the most popular fuel credit cards in India currently:
ICICI HPCL Coral Credit Card
IDFC First HPCL Power Credit Card
Indian Oil Kotak Credit Card
BPCL SBI Credit Card
Indian Oil Axis Bank Credit Card
Contactless credit cards feature a proprietary payment technology that enables cardholders to make payments by simply tapping their cards at POS terminals. Customers do not need to enter a PIN number to make purchases using contactless transactions, which are extremely secure.
The following are some of the most popular contactless credit cards in India:
SBI Signature Contactless Credit Card
HDFC Regalia Credit Card
Kotak Royale Signature Credit Card
IndusInd Bank Signature Legend Credit Card
Some banks have introduced credit cards specifically designed for women to ensure higher benefits. These credit cards are primarily concerned with shopping rewards and cashback offers.
Aside from that, cardholders can receive bonus reward points, a waiver of fuel surcharges, insurance, and other benefits. They can also earn reward points when they use their credit cards to make purchases. However, there aren't many credit cards for women that provide excellent travel benefits.
The following are some of the most popular credit cards for women in 2024:
Premium Women's Credit Card from HDFC Bank Solitaire
Kotak Mahindra Bank Silk Inspire Credit Card
Citibank Rewards Credit Card
HDFC Solitaire Credit Card
SBI Simply CLICK Credit Card
These credit cards are catered to students and are considered starter credit cards. Student credit cards encourage students to develop healthy financial habits and start building credit scores as early as possible.
They generally have lower limits, the application process is simple, and the eligibility criteria are easy to meet. Some of the popular student credit card options in 2024 are:
MNSSBY Bihar Student Credit Card
ICICI Bank Student Forex Prepaid Card
West Bengal Student Credit Card
SBI Student Plus Advantage Credit Card
HDFC Bank ISIC Student ForexPlus Chip Card
Travel credit cards are popular due to the numerous travel-related benefits they provide. These cards provide travel benefits not only in India but also abroad. Most banks have partnered with airlines or travel agencies to offer travel credit cards. Customers who use this card to make travel purchases can earn air miles.
These cards provide air miles, free access to airport lounges, hotel and vacation packages, golf packages, dining packages, travel insurance, and other benefits. Hotel and airline credit cards are two other types of popular travel credit cards.
Popular travel credit cards in India in 2024 include:
Axis Bank Horizon Credit Card
HDFC Diners Club Black Credit Card
IndusInd Bank Avios Visa Infinite Credit Card
Emirates Skywards ICICI Bank Sapphiro Credit Card
Yatra SBI Credit Card
These credit cards offer 5-20% cashback on certain transactions. Transactions depend on your card and may be bill payments, movie ticket purchases, retail purchases, dining bills, grocery purchases, etc.
Some popular cashback credit cards in December 2024 are:
Flipkart Axis Bank Credit Card
SimplyClick Advantage SBI Card
ICICI Bank Platinum Credit Card
YES Bank Paisabazaar PaisaSave Credit Card
Amazon Pay ICICI Credit Card
Banks offer co-branded credit cards in collaboration with a retail brand, travel aggregator, or any other financial institution. Co-branded credit cards include benefits such as rebates, discounts, and offers from a specific retail partner brand, depending on the tie-up.
Despite the fact that these credit cards include features from two major companies, there are no restrictions on their use. Some popular co-branded credit cards of 2024 are mentioned here:
Air India SBI Platinum Card
SBI Yatra Credit Card
IRCTC SBI Platinum Credit Card
RBL Bank BankBazaar SaveMax Credit Card
TAJ Premium Credit Card from Bank of India
Reward credit cards are well-known for providing multiple rewards with each card transaction. Cardholders can earn rewards points on all of their card transactions, including retail, online, and so on. In addition, they can earn reward points as a welcome gift, birthday gift, renewal bonus, and so on.
These reward points can be redeemed for products/services listed in the rewards catalog, such as cashback deals, air miles, travel deals, etc. Popular rewards credit cards of December 2024 include:
Citibank Rewards Credit Card
Standard Chartered Rewards Credit Card
Yes Bank Finbooster Credit Card
AU Zenith Credit Card
RBL Bank Savemax Credit Card
Business credit cards are for businesses, corporations, and other institutions so that employers can provide credit cards to their employees. These cards can choose to have their company name embossed on these cards.
Employees cannot use these cards for personal transactions, and they are only valid during their employment with the company. Benefits include hotel and travel discounts, business savings plans, add-on cards, insurance, etc.
Popular business/corporate credit cards include:
HDFC Business MoneyBack Credit Card
Axis Bank My Business Credit Card
Citibank Corporate Credit Card
Kotak Corporate Gold Credit Card
YES FIRST Corporate Credit Card
These are designed with the cardholder’s lifestyle in mind and include dining, wellness, shopping, and entertainment benefits. These cards typically include first-year annual fee waivers, cashback on tickets, insurance discounts, and other perks.
Popular lifestyle credit cards in December 2024 in India are:
SBI Elite Credit Card
HDFC Solitaire Credit Card
ICICI Bank Coral Credit Card
Kotak Bank PVR Platinum Credit Card
Axis Bank Privilege Credit Card
These credit cards are given against a fixed deposit and are a good option for people with low or no credit history. Banks or credit card issuers offer credit cards with 75-80% of your fixed deposit amount.
Some of the top secured credit card options are:
SBI Card Unnati
IDFC FIRST WOW! Credit Card
Step UP Credit Card
Axis Insta Easy Credit Card
Bank of Baroda Prime Credit Card
APR stands for Annual Percentage Rate and these credit cards offer zero interest on purchases, balance transfers, or both. This is, however, applicable only for a limited period of time, mostly for 12 to 21 months.
After the introductory period is over, you will have to pay the regular APR as per the card issuer’s rules. Some of the top credit cards in this category are as follows:
SBI Credit Cards
HDFC Credit Cards
RBL Bank Credit Cards
Standard Chartered Bank Credit Cards
Kotak Mahindra Bank Credit Cards
Credit cards are one of the most popular and versatile forms of credit available today. Not only are they easy to use, but these small plastic cards also come with many benefits and rewards. Based on your lifestyle and needs, you can choose from the credit cards offered by various banks and issuers.
Other noteworthy types of credit cards are store credit cards which can be used in the same family or chain of stores. Banks also offer gold, silver, and platinum credit cards, which are premium cards for higher fees and more benefits.
While using credit cards has many benefits, make sure that you pay your bills on time so you don’t accumulate debt.
Ans: A secured credit card is one that is issued in exchange for an asset in your name (for example, Fixed Deposit). If you are not eligible for an unsecured credit card, this could be a good place to start. Many of India's top banks offer secured cards in exchange for fixed deposits.
Ans: Yes, you can, and the process of withdrawing cash from an ATM using your credit card is referred to as a 'cash advance.' You are only permitted to withdraw a portion of your credit limit.
However, these types of withdrawals will incur additional fees and have a higher interest rate when compared to withdrawing money from an ATM using your debit card.
Ans: You will earn reward points every time you swipe your credit card. You can always redeem your accumulated reward points for merchandise, a direct statement credit, or gift vouchers. A few credit cards will provide additional rewards for grocery purchases, while others will provide additional rewards when you book a flight or a hotel room.
Ans: No, not all credit cards have an annual fee or a joining fee. A few basic credit cards have no annual or joining fees. All credit cards with an annual fee provide more benefits than credit cards with no annual fee or joining fee.
Ans: There are multiple types of credit -cards, divided into 3 categories - rewards, low-interest, and credit-building cards.
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