Credit Cards: The Different Types Available and Which One To Go For
India has around 40 million credit card users as of 2018. However, the number of debit card users still rules with more than 950 million holders.
This lower number of credit card holders is mainly because of the common notion of high interest rates. However, the truth is that interest is only levied when you fail to pay the bill within its due date.
Other than that, credit cards offer exclusive rewards and benefits which debit cards don’t. You can go for a specific card based on your lifestyle to get the most out of it. Broadly speaking, there are two types of credit cards in India. These include:
Secured credit cards
These types of credit cards are available against a fixed deposit. The credit limit available can be either the full amount of the FD or a discounted one. People who have no or low income mostly avail secured credit cards. Also, those who have low credit score can apply for these cards.
Unsecured credit cards
These cards are the most popular choices among users. They are unsecured as you don’t have to provide any collateral to avail these cards. You can apply credit card online for instant approval from various financial institutions.
Get the following options in this category:
Co-branded credit cards
Co-branded credit cards are provided by a financial institution in association with another company. Some of the types of co-branded credit cards include:
Travel credit cards
Travel credit cards are for frequent flyers. Companies generally provide these cards in partnership with an airline.
You can earn rewards and travel miles when you book flight tickets with these types of credit cards in India. The rewards can then be redeemed to get discounts on future air ticket purchases.
Travel credit cards also provide other benefits like concierge services, complimentary accesses to lounges in airports, etc.
Credit cards like the Bajaj Finserv RBL Bank SuperCard provide up to 8 such airport lounge accesses. You can also convert the reward points that you earn into travel miles.
Fuel credit cards
Card issues partnered with oil companies provide fuel credit cards which are exceptional for those spending high on fuel.
You can collect reward points when purchasing fuel using these co-branded credit cards. Then, redeem these points to buy fuel for free. You also get full or limited fuel surcharge waiver with these cards.
Shopping credit cards
Companies providing shopping credit cards are partnered with various retailers and brands. Shopping using these credit cards from these outlets can give you discounts, cashback, and high reward points.
If you want to apply credit card online with instant approval, find pre-approved offers which not only reduces the hassle of availing one but also save on time.
Bajaj Finserv provides these pre-approved offers on their credit cards, home loans, personal loan, business loans, and numerous other financial products. Provide only a few essential details to check your pre-approved offer.
Balance transfer credit cards
It may so happen that you have accumulated high debts on your credit card that you are finding hard to pay. Or, maybe the interest rate is lower in another card than your current card. In both of these cases, you can opt for a balance transfer card.
These types of credit cards in India come with 0% interest for a limited period, around 6 months. Transferring the balance to these credit cards can help you pay the same more conveniently.
However, your current card issuing company may charge a fee for this transfer. Furthermore, the balance transfer card can come with various terms and conditions. For example, you may need to have a minimum or maximum balance to transfer.
Entertainment credit cards
Entertainment credit cards are specially designed for movie lovers. These credit cards provide free limited movie tickets every month. You can also get discounts and high reward points when purchasing the same.
Plain vanilla credit cards
Plain vanilla credit cards don’t come with exclusive features and benefits. These provide minimal or no rewards. Generally, these cards can be availed by those with low income or poor credit score. Plain vanilla credit cards are exceptional to improve your credit score.
Choose any one of these types of credit card depending on your lifestyle. With Bajaj Finserv, you can choose from 6 variants of SuperCard namely- Platinum Plus SuperCard, Platinum Plus First Year Free SuperCard, Platinum Choice SuperCard, Platinum Choice First Year Free SuperCard, World Prime SuperCard and World Plus SuperCard.
Author Bio:
Gaurav khanna is an experienced financial advisor, digital marketer and writer who is well known for his ability to predict market trends. You can find Gaurav on Linkedin.
Category: Credit Card
