Types of Credit Cards in India

Credit cards are small plastic cards that can make life much easier. These cards allow you to buy goods and services on credit and return the money at the end of the month. You can choose to pay the full amount of credit borrowed from your credit card issuer each month or a minimum fixed amount.

If you only pay the minimum amount, keep in mind that you will be charged interest on your outstanding balance. Your credit card company has set a credit limit for you.

There are numerous banks in India that offer different types of credit cards. These cards are classified based on the rewards and benefits they provide, as well as the applicant's income and spending requirements. Customers can select any credit card that provides them with numerous benefits and is a good fit for their needs.

For example, if you travel frequently, a travel card can help you earn air miles, gain access to airport lounges, and so on. Credit cards are available in India through the following payment networks: Visa, MasterCard, American Express, Diner's Club, and so on.

 Different types of Credit Card

1. Fuel Credit Cards

Fuel credit cards provide benefits on fuel transactions made by cardholders. Customers can save money on refueling with this card because it offers cashback and waives fuel surcharges. Some banks also provide accelerated rewards points on fuel purchases made at specific petrol pumps across India. 

The accumulated reward points can be redeemed for a predetermined amount of refueling. Other benefits include an activation bonus, entertainment benefits, dining, hotel, wellness offers, and so on.

Auto credit cards have very low annual and joining fees, and daily Metro/train commuters can greatly benefit from using these cards. These cards function as both travel cards and regular credit cards that can be used for shopping and other purchases.

These cards come preloaded with a certain amount of cash as a welcome bonus, and they also have an auto top-up feature. Customers can earn points for top-ups and other purchases. Cardholders can also get annual renewal deals, add-on cards, and surcharge waivers with some cards.

The following are some of the most popular auto/fuel credit cards:-

2. Credit Cards With No Contact

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. These cards provide a variety of benefits such as discounts, cash back, entertainment benefits, reward points, a welcome gift, lounge access, concierge service, insurance coverage, and so on.

The following are some of the most popular contactless credit cards:-

3. Women's Credit Cards

Some banks have introduced credit cards specifically designed for women to ensure that their female customers receive the most 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:-

4. Credit Cards for Travel

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. 

Aside from that, some travel cards grant customers access to airport lounges. Customers can convert the reward points they earn on these cards into air miles, which can then be used to book flights and upgrade seats. Travel cards also include hotel and vacation packages, golf packages, dining packages, travel insurance, and other benefits. 

Popular travel credit cards include:-

5. Credit Cards with Cash Back

Customers who use cashback credit cards receive cashback on their transactions that range from 5% to 20%, depending on the spend category. Cashback can be earned on bill payments, movie ticket purchases, retail purchases, dining bills, and grocery purchases, among other things. Fuel surcharge waivers, annual fee refunds, dining and shopping privileges, global acceptance, rewards program, balance transfers, and other benefits are available with every cashback card.

Some examples include:-

6. Co-Branded Credit Cards

Banks offer co-branded credit cards in collaboration with a retail brand, travel aggregator, or any other financial institution. Both parties' benefits are integrated into a co-branded credit card, allowing customers to enjoy double benefits with a single card. Co-branded credit cards that are issued in conjunction with retail merchants are the most successful because banks can easily expand their customer base through the merchant's clientele.

Co-branded credit cards may include benefits such as rebates, discounts, and offers from a retail partner brand, sporting benefits from a sports league, ticket booking privileges from airline and railway partners, holiday and hotel accommodation privileges from travel aggregators and premier hotel chains, and so on, 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.

Popular co-branded credit cards include:-

7. Credit Cards with Reward Programs

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. 

They can also earn points by spending a certain amount in a certain amount of time. These reward points can be redeemed for products/services listed in the rewards catalog, such as cashback deals, air miles, travel deals, and so on.

Popular rewards credit cards include:-

8. Corporate/Business Credit Cards

Business credit cards are provided to businesses, corporations, and other financial institutions so that employers can provide credit cards to their employees while also conveniently managing their finances on the card. Employees cannot use these cards for personal transactions, and they are only valid during their employment with the company.

Corporate cards provide benefits such as hotel and travel discounts, business savings plans, expense management, insurance, fuel surcharge waivers, airport lounge access, rewards programs, cash advances, add-on cards, bill payments, and the ability to convert purchases into monthly installments. Companies can also choose to have their company name embossed on these credit cards.

Popular business/corporate credit cards include:

9. Lifestyle credit cards 

These are designed with the applicants' changing lifestyles and income in mind. Most lifestyle credit cards include golfing, shopping, dining, travel, and other benefits. These cards typically include first-year annual fee waivers, cashback on tickets, insurance discounts, and other perks. 

Customers who use lifestyle credit cards can earn bonuses and accelerated rewards points on their purchases. The majority of these cards are Platinum credit cards that provide superior travel, shopping, dining, and luxury lifestyle benefits. Axis Bank Signature, for example. Signature Credit Card from Axis Bank with Lifestyle Benefits

Popular lifestyle credit cards are -

10. Credit Cards for Entertainment

Entertainment credit cards are well-known for their incredible entertainment offers, which include discounts, cashback, or buy one get one free deals on movie ticket bookings, events, and shows, among other things. These cards also provide cardholders with lifestyle, golf, dining, shopping, and travel benefits.

Customers can also earn rewards points on these transactions and redeem them for movie tickets, travel reservations, or gift cards.

Popular entertainment credit cards include -

11. Premium/Signature Credit Card

Most banks provide a "Premium" or "Signature" credit card with the best lifestyle benefits. Flexible spending limits, premium airport lounge access, concierge services, complimentary insurance, rewards program, global assistance services, chartered yacht, and flight services, surcharge waivers, retail, travel, and hotel accommodation vouchers, and so on distinguish premium credit cards. There are more options for reclaiming rewards earned with these cards. Some of these cards waive the annual fee if the cardholders spend a certain amount.

Popular signature credit cards include:

12. Credit Cards With Prepaid Limits

Prepaid credit cards allow cardholders to load money into them and use that money to make purchases. Even though these cards do not provide a line of credit, customers can enjoy the majority of the benefits offered by other types of credit cards. The outstanding balance is the amount that the customer leaves on the prepaid card after completing a transaction.

Prepaid credit cards offered by banks in India include the following:

13. Gold credit card

Individuals with a higher income can apply for a gold credit card from any Indian bank. Any applicant for a gold credit card should have a good credit score. A gold credit card has the following features in common. 

Some other popular gold cards are -

14. Silver Credit Cards 

Silver credit cards are available to anyone who earns a low salary and has 4 to 5 years of work experience. Salaried employees can easily obtain this type of credit card if they have a good credit history. These cards have a low membership fee and no interest on balance transfers for the first 6 to 9 months.

Some examples of silver credit cards are -

15. Classic Credit Cards

Classic credit cards include features such as global acceptance, revolving credit, cash advances, interest-free credit periods, rewards programs, supplementary cards, insurance, and a dedicated 24/7 customer care help desk. Most traditional credit cards have no annual or joining fees and have low finance charges.

16. Titanium Credit Cards

Titanium credit cards are high-end cards that come with a slew of perks and benefits. The Titanium Rewards program, which is available to customers, is the most important feature of a Titanium credit card. This rewards program includes the accumulation of reward points, the redemption of gifts and air miles, cashback offers, and so on. 

Surcharge waivers, revolving credit, interest-free credit period, annual fee reversals, insurance, welcome gifts in the form of vouchers from top retail brands, add-on card facility, wellness and beauty offers, lifestyle, and dining benefits, and so on are all included with any Titanium credit card.

Some of the most well-known titanium credit cards are

17. Platinum Credit Cards 

Because of the numerous benefits and privileges it provides, the platinum card is one of the most popular credit cards and is held by a large number of people. The advantages include lifestyle, dining, shopping, and entertainment offers, among others. Platinum cards have slightly higher annual, joining, and renewal fees than other types of credit cards. 

Every Platinum credit card includes an exceptional welcome package, retail brand gift vouchers, annual spend rewards, accelerated rewards points, cashback offers, Priority Pass membership with access to premium airport lounges, renewal gift vouchers, global lifestyle and golfing privileges, easy cash withdrawals, fuel surcharge waiver, add-on cards for family, emergency card replacement services, and so on. 

Platinum cardholders typically receive additional exclusive benefits, deals, and offers with each card obtained, depending on the financial institution with which they bank.

The following are some of the most popular Platinum credit cards:

Conclusion

Credit cards are one of the most popular and versatile forms of credit available in the market today. Not only are they easy to use, these small plastic cards also come with the number of benefits and rewards.

Based on your lifestyle and needs, you can choose from a variety of credit cards in the market today. As always, ensure that you repay your bills on time to avoid paying a high rate of interest.

Different types of Credit Card Related FAQs

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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