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What are The Different Types of Credit Cards in India

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What are The Different Types of Credit Cards in India

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The credit card market has grown significantly over the years, and today, there are many different types of credit cards in India. Although each credit card category's core function is similar, each card type comes with unique features and benefits. If you are shopping for a new credit card for your financial portfolio, it is essential to understand the many types of credit cards in India to make an informed choice. 

Check out the options available to you and what they each entail.

Basic credit cards 

Basic credit cards are simple, beginner-friendly cards that give you a small credit limit based on your income. You can make purchases and spend on other transactions using the basic card, up to the limit available. Typically, these basic credit cards do not offer additional benefits or rewards. They are best suited for people who wish to try out using a credit card for a few months before expanding their credit portfolio.

Some of the top features of this type of credit card include:

  • Low or negligible annual fee
  • Low credit limit
  • Minimal or no significant rewards
  • Simple terms and conditions

Secured credit cards 

It may be challenging to get a credit card if you have a poor credit history or no credit history. However, secured credit cards can help you here since they are typically issued against deposits made with the issuing bank. It makes them ideal choices for people trying to build a credit score. Plus, you can also earn interest on your bank deposit simultaneously. 

Here are the key features of secured credit cards:

  • Only issued against collateral
  • Low joining fees
  • Credit limit equivalent to the deposit amount
  • Fairly decent rewards on your spends

Rewards credit cards 

These credit cards offer rewards for every rupee you spend on eligible transactions and purchases. For instance, you may earn 2 reward points for every Rs. 100 spent online shopping. The rewards points accumulated can then be redeemed to purchase products or services from a pre-existing catalogue curated by the card issuer. So, you can earn even as you spend. 

Some of the common features of rewards credit cards include:

  • Reward points on eligible spends
  • Additional bonus points for spends above a certain threshold
  • Waiver of annual fees in case of spends above a certain limit
  • Easy redemption upon accumulation of a certain number of reward points 

Cashback credit cards 

As the name indicates, cashback credit cards tend to offer a percentage of the expenses made as cashback for eligible spends and transactions. The cashback may only be offered on specific 'spend' categories — so check the details before you apply for this type of credit card. The percentage of money gained also varies from one card to another and from one spend category to another.

Check out some of the main features of this kind of credit card below:

  • Money back guarantee on particular eligible spends
  • Additional rewards or reward points on some expenses
  • Welcome benefits for new cardholders
  • Waiver of fuel surcharge at select petrol stations

Travel credit cards 

Travel credit cards are best suited for frequent travellers. So, these credit cards have many benefits if you regularly catch a flight for work or vacations. They offer rewards in the form of air miles for every mile flown. You can then redeem the air miles you’ve accumulated for flight tickets. In addition, travel credit cards offer several advantageous features.

Here is a quick look at some top features of travel credit cards. 

  • Comprehensive travel insurance benefits
  • Complimentary access to domestic or international lounges each year
  • Low FOREX markup 
  • A certain number of complimentary flight tickets each year

Premium credit cards 

As the name indicates, these credit cards are select financial products with strict eligibility criteria. They offer premium, top-of-the-range benefits. Due to the nature of the rewards, premium credit cards are typically only provided to people with a certain income level. 

Some of the main features and benefits of premium credit cards are:

  • Concierge services 
  • A personal relationship manager
  • Complimentary access to golf clubs and airport lounges
  • High annual fees 

Co-branded credit cards 

Banks issue co-branded credit cards in partnership with top brands in different industries and sectors. Banks may often tie up with industry leaders to issue co-branded credit cards, which offer exclusive rewards and discounts when you make transactions for purchases from the brand partner. 

Here are some key features of co-branded credit cards.

  • Generally accepted internationally
  • Fee waivers upon spends of a certain threshold
  • Exclusive rewards and discounts from the brand partner
  • Ideal for frequent shoppers with major lifestyle expenses

Business credit cards 

Banks typically issue Business credit cards for companies who want to make it easier for their employees to pay for business-related expenses. Usually, these cards get used for work-related flight bookings, accommodation expenses and regular commuting costs. Not all employees receive such cards — mainly offered to employees who travel for work regularly.

Some of the main features of business credit cards include the following: 

  • Loyalty points for frequent spends
  • Rewards and cashback on eligible expenses
  • Easier segregation of business expenses
  • Responsibility for the card rests with the company rather than the cardholder


Well, now that you know the different types of credit cards in India, you can make a more informed choice about the kind of card that you need.  Remember that you can have more than one kind of credit card in your financial portfolio, so if you are eligible for multiple cards and benefit from them, you can always apply for them. Just remember to pay the dues on time, so you can avoid the high-interest charges and make the most of the rewards and features on your credit card.  

Frequently Asked Questions (FAQs)

1. How many types of credit cards are there in India?

There are several different types of credit cards available in India. Some of the common credit card categories that you can choose from include the following —

  • Basic credit cards 
  • Secured credit cards 
  • Rewards credit cards 
  • Cashback credit cards 
  • Travel credit cards 
  • Co-branded credit cards 
  • Business credit cards 

2. Which credit card type is the best?

There is no universal, one-size-fits-all answer to this question. It all depends on what your financial needs and goals are. For instance, if you travel frequently, a travel credit card may be the ideal choice for you. Alternatively, getting a secured credit card may be easier if you have made a deposit with the issuing bank. Similarly, if you shop a lot online, a cashback credit card or a rewards credit card may be suitable options to consider. 

Still curious? Learn more about how to choose a credit card here:

What is a Credit Card? Things You Need to Know Before You Own One

10 Credit Card Features That Are Actually a Boon To Its Users

Credit Scores: A Complete Guide

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