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Explore the diverse world of credit cards in India. From rewards to travel, find the perfect fit for your financial needs among these 8 distinct types of credit cards


8 Different Types of Credit Cards in India

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"8 Different Types of Credit Cards in India"

Rupali Amin

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<p>
    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 has unique features and benefits.
   </p><p>
    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 8 options available to you and what they each entail.
   </p><h2>
    Types of Credit Cards in India
   </h2><p>
    Below are the 8 different types of credit cards in India:
   </p><ol role="list">
    <li>
     Basic Credit Cards
    </li>
    <li>
     Secured Credit Cards
    </li>
    <li>
     ‍Rewards Credit Cards
    </li>
    <li>
     Cashback Credit Cards
    </li>
    <li>
     Travel Credit Cards
    </li>
    <li>
     Premium Credit Cards
    </li>
    <li>
     Co-branded Credit Cards
    </li>
    <li>
     Business Credit Cards
    </li>
   </ol><p>
    Now that we’ve listed down the types of credit cards in India, let’s explore each of them in detail.
   </p><h3>
    1. Basic Credit Cards
   </h3><p>
    Basic credit cards are the most common type of credit cards available that provide a small credit limit based on income, allowing you to make purchases and transactions. They are beginner-friendly and lack additional benefits or rewards. These cards suit those wanting to try them before expanding their credit portfolio.
   </p><p>
    Key features of this basic credit cards:
   </p><ul role="list">
    <li>
     Low or negligible annual fee
    </li>
    <li>
     <a href="https://fi.money/blog/posts/key-tips-to-increase-your-credit-card-limit">
      Low credit limit
     </a>
    </li>
    <li>
     Minimal or no significant rewards
    </li>
    <li>
     Simple terms and conditions
    </li>
   </ul><h3>
    2. Secured Credit Cards
   </h3><p>
    It may be challenging to get a credit card if you have a poor credit history or no credit history. However, a secured credit card is the type of credit card can help you, since it is typically issued against deposits made with the issuing bank. It makes them ideal choices for people trying to build a
    <a href="https://fi.money/blog/posts/how-to-increase-and-improve-your-credit-score">
     credit score
    </a>
    . In some cases, you can also earn interest on your bank deposit simultaneously.
   </p><p>
    Key features of secured credit cards:
   </p><ul role="list">
    <li>
     Only issued against collateral
    </li>
    <li>
     Low joining fees
    </li>
    <li>
     Credit limit equivalent to the deposit amount
    </li>
    <li>
     Fairly
     <a href="https://fi.money/blog/posts/what-are-credit-card-reward">
      decent rewards
     </a>
     on your spends
    </li>
   </ul><h3>
    3. Rewards Credit Card
   </h3><p>
    These credit cards offer rewards for eligible transactions, such as earning 2 reward points for every Rs. 100 spent online. Points can be redeemed for products or services from a curated catalogue. Earn while you spend.
   </p><p>
    Key features of rewards credit cards:
   </p><ul role="list">
    <li>
     Reward points on eligible spends
    </li>
    <li>
     Additional bonus points for spends above a certain threshold
    </li>
    <li>
     Waiver of annual fees in case of spends above a certain limit
    </li>
    <li>
     Easy redemption upon accumulation of a certain number of reward points
    </li>
   </ul><h3>
    4. Cashback Credit Cards
   </h3><p>
    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.
   </p><p>
    Key features of cashback credit cards:
   </p><ul role="list">
    <li>
     Money back guarantee on particular eligible spends
    </li>
    <li>
     Additional rewards or reward points on some expenses
    </li>
    <li>
     Welcome benefits for new cardholders
    </li>
    <li>
     Waiver of fuel surcharge at select petrol stations
    </li>
   </ul><h3>
    5. Travel Credit Cards
   </h3><p>
    Travel credit cards are ideal for frequent travellers, offering benefits like air mile rewards for flights. Accumulated air miles can be redeemed for tickets. These cards also come with additional advantageous features.
   </p><p>
    Key features of travel credit cards:
   </p><ul role="list">
    <li>
     Comprehensive travel insurance benefits
    </li>
    <li>
     Complimentary access to domestic or international lounges each year
    </li>
    <li>
     Low FOREX markup
    </li>
    <li>
     A certain number of complimentary flight tickets each year
    </li>
   </ul><h3>
    6. Premium Credit Cards
   </h3><p>
    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.
   </p><p>
    Key features of premium credit cards:
   </p><ul role="list">
    <li>
     Concierge services
    </li>
    <li>
     A personal relationship manager
    </li>
    <li>
     Complimentary access to golf clubs and airport lounges
    </li>
    <li>
     High annual fees
    </li>
   </ul><h3>
    7. Co-branded Credit Cards
   </h3><p>
    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.
   </p><p>
    Key features of co-branded credit cards:
   </p><ul role="list">
    <li>
     Generally accepted internationally
    </li>
    <li>
     Fee waivers upon spending of a certain threshold
    </li>
    <li>
     Exclusive rewards and discounts from the brand partner
    </li>
    <li>
     Ideal for frequent shoppers with common lifestyle expenses
    </li>
   </ul><h3>
    8. Business Credit Cards
   </h3><p>
    Banks typically issue Business credit cards for companies who want to make it easier for their employees to pay for business-related expenses. While these type of credit cards are not very common, they are 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.
   </p><p>
    Key features of business credit cards:
   </p><ul role="list">
    <li>
     Loyalty points for frequent spends
    </li>
    <li>
     Rewards and cashback on eligible expenses
    </li>
    <li>
     Easier segregation of business expenses
    </li>
    <li>
     Responsibility for the card rests with the company rather than the cardholder
    </li>
   </ul><h2>
    Conclusion
   </h2><p>
    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. 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.
   </p><h2>
    Frequently Asked Questions
   </h2><h3>
    1. What are the benefits of using a travel rewards credit card in India?
   </h3><p>
    Benefits of using a travel rewards credit card in India include:
   </p><ul role="list">
    <li>
     Earn points/miles for every rupee spent.
    </li>
    <li>
     Redeem points for free flights, hotel stays, or other travel perks.
    </li>
    <li>
     Travel insurance coverage.
    </li>
    <li>
     Airport lounge access.
    </li>
    <li>
     Discounts on hotels and airlines.
    </li>
    <li>
     Foreign currency transaction fee waivers.
    </li>
    <li>
     Bonus rewards on travel-related expenses.
    </li>
   </ul><h3>
    2. Can you explain the features of a premium credit card in the Indian market?
   </h3><p>
    Features of a premium credit card in India include high credit limits, generous rewards, airport lounge access, travel insurance, concierge service, exclusive offers, foreign exchange benefits, golf access, dining and entertainment perks, lifestyle benefits, personalized customer support, and higher annual fees.
   </p><h3>
    3. How do secured credit cards function in India, and who are they suitable for?
   </h3><p>
    Secured credit cards in India require a security deposit, which determines the credit limit. They are suitable for individuals with low or no credit history or those looking to rebuild their credit. The security deposit reduces the risk for the card issuer. Cardholders use the card like a regular credit card and make payments, which can positively impact their credit score over time.
   </p><h3>
    4. What are the advantages of using a co-branded credit card in India?
   </h3><p>
    Advantages of using a co-branded credit card in India include specialized rewards, enhanced discounts, loyalty points, travel benefits, accelerated earnings, priority services, and potential annual fee waivers with partner brands.
   </p><h3>
    5. Are there any specific credit cards designed for students in India?
   </h3><p>
    Yes, there are credit cards designed specifically for students in India. These cards typically have lower credit limits and are tailored to the financial needs of students. They often come with features such as cashback on student-related expenses, no annual fees, and are accessible to individuals with limited or no credit history.
   </p><h3>
    6. How many types of credit cards are there in India?
   </h3><p>
    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:
   </p><ol role="list">
    <li>
     Basic credit cards
    </li>
    <li>
     Secured credit cards
    </li>
    <li>
     Rewards credit cards
    </li>
    <li>
     Cashback credit cards
    </li>
    <li>
     Travel credit cards
    </li>
    <li>
     Co-branded credit cards
    </li>
    <li>
     Business credit cards
    </li>
   </ol><h3>
    ‍7. Which type of credit card is the best?
   </h3><p>
    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 your ideal choice. 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.
   </p><h2>
    Still curious? Learn more about credit cards here:&nbsp; ‍
   </h2><ul role="list">
    <li>
     <a href="https://fi.money/blog/posts/what-is-credit-card-things-you-need-to-know-before-you-own-one">
      What is a Credit Card? Things You Need to Know Before You Own One
     </a>
    </li>
    <li>
     <a href="https://fi.money/blog/posts/10-credit-card-features-that-are-actually-boon-to-its-users">
      10 Credit Card Features That Are Actually a Boon To Its Users
     </a>
    </li>
    <li>
     <a href="https://fi.money/blog/posts/all-you-need-to-know-about-credit-scores">
      Credit Scores: A Complete Guide
     </a>
    </li>
   </ul><h2>
    Get the Best of all Worlds with Fi
   </h2><p>
    If you're looking for a credit card that is all about the rewards, try the
    <a href="https://fi.money/apply-credit-card-online" target="_blank">
     Fi-Federal Credit Card
    </a>
    .
   </p><ul role="list">
    <li>
     Benefits worth ₹20,000
    </li>
    <li>
     Welcome gift cards worth over ₹5,000
    </li>
    <li>
     Accelerated rewards on 20+ top brands
    </li>
    <li>
     5x rewards on your top 3 brands every month
    </li>
    <li>
     Assured 2x rewards on all brands from the Fi Collection
    </li>
    <li>
     1% forex markup
    </li>
    <li>
     Rewards on everything, even rent and fuel
    </li>
    <li>
     Lounge access
    </li>
   </ul>

8 Different Types of Credit Cards in India | Fi Money


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