There are numerous types of credit cards for different individuals. These types of credit cards vary with regards to their ability to make payments, credit scores, credit limits, rewards, benefits, features and purchasing power.
Different credit cards have different interest rates, fees and reward programs. You need to go through a couple of them before you apply for one. Following are different types of credit cards offered by financial institutions and banks in India.
- Standard Credit Cards: These are general purpose credit cards that are being applied for by regular customers in India. These cards require no deposits and have a pre-fixed credit limit. They are usually assigned to people above 18 years of age; and those who can meet or exceed the minimum credit card payment.
- Premium Credit Cards: These premium cards are usually categorized as platinum and gold cards. These feature higher credit limits at more pronounced fees. Some of their perks include exclusive airline lounges, concierge services, etc. They are also known as upscale credit cards. Usually, these cards are offered to people with excellent credit scores only; in other words, they are for those users who are capable of affording high credit limits. Customers with huge salaries and those who are heavy spenders would like to enjoy the perks of such premium cards.
- Secured Credit Cards: For using secured credit cards, users have to deposit a certain amount of money with the bank that issues the same. Their credit limit will depend on the deposits made. These cards usually have high annual fees and escalated rates of interest. They are generally allotted to users with tarnished credit history. They are also referred to as pay-as-you-go cards. Mostly, these cards are used to re-establish credit; with these cards, small purchases, that can be easily repaid, can be done without any fuss.
- Specialty Credit Card: Affiliations and partnerships of major brands offer these credit cards. For instance, AXIS bank offers three movie tickets at PVR screens on spending Rs. 8000 every month. There are certain specialty cards that share partnerships between entities supporting social causes, or are linked to alumni associations or other professionally run organizations.
- Prepaid Credit Cards: Here, the user loads the credit card with money; a prepaid credit card is similar to a debit card except that it’s not tied to a bank account.
- Reward Credit Cards: Some credit cards bear reward points that influence their users’ spending patterns. The perks are in the form of discounts, cash backs, and points. Points which are accumulated in due course can be redeemed against free hotel stays, car rentals, merchandise, air travel, and certificates.
Which credit card would you like to opt for? Go for one that suits your budget and purpose alike – you will not be disappointed you did!