As credit card issuers extend different perks and benefits for different users, it becomes important to know about the types of credit card. Due to its various uses, each type of credit card has unique features. With these features, cardholders can save money and avail exclusive offers. On top of that, these attractive offers are applicable to several brands. Therefore, these “lifestyle cards” have gained popularity all over India.
What are the different categories of credit cards?
The different types of credit card in the market appeal to distinct types of users. Therefore, a credit card that is suitable for a businessman may not be so for a student. On top of that, people from different backgrounds have a wide range of financial needs.
Thus, knowing which particular category of credit card one needs is the first step towards choosing a convenient credit card. Here is a list of several types of credit cards that one can avail –
- Travel credit cards – This kind of credit card is the most suitable for individuals who travel frequently. Individuals can benefit from high reward points on air tickets, which they can redeem for discounts on similar transactions. Additionally, travel credit cards provide gift vouchers and reward points on crossing spending milestones. Individuals should learn about the credit card benefits for every traveller.
Cardholders can also save more on their fuel expenses with travel credit cards. Besides, premium credit cards to travel enable users to avail interest-free cash withdrawal and loan. Therefore, individuals can use travel cards as a financial escape route in case they are stranded during travelling.
- Shopping credit cards – Shopping credit cards are most suitable for people with considerable household expenses. Cardholders can benefit from discounts and cashback on certain purchases. They will also be able to earn high reward points on such transactions. There are several things one can do with credit card reward points.
Few financial institutions also provide these credit cards in partnership with a retail company. Shopping from that company’s online or offline store will enable cardholders to gain attractive benefits.
- Business credit card – These credit cards appeal the most to individuals involved in business. Where there is frequent domestic and international travelling involved, this category of credit card is the most beneficial. With business credit cards, people have the option to access airport lounges with complimentary offers.
- Entertainment credit card – These credit cards cater to the fields of entertainment. Cardholders can leverage their cards to get free movie tickets or discounts on movie tickets every now and then. On top of that, people can use these types of credit cards to benefit from fuel surcharge waiver during road-trips or commutes.
For instance, the Bajaj Finserv RBL Bank SuperCard enables cardholders to avail fuel surcharge waiver and offers on movie tickets. Additionally, customers will also be able to withdraw cash from ATMs without any interest for up to 50 days and avail a zero inverters personal loan for up to 90 days.
- Student credit card – Credit cards for students extend revolving credit at lower interest rates. These cards are mostly collateralised. As a result, lenders consider slashing interest rates for these users.
Additionally, students can use these designated credit cards to withdraw cash from ATMs. Withdrawals using premium credit cards are interest-free up to a certain point of time. However, the credit limit extended by student credit card issuers is generally lower than other kinds of credit cards.
The aforementioned types of credit card suit individuals from different lifestyles. Cardholders can get lucrative benefits on their credit card purchases such as cashback, and reward points.
Consequently, the right knowledge helps scores of individuals to choose the right credit card. They can apply for a credit card online easily after picking the right product.