The growing popularity of credit cards was bound to increase its supply as well, and that too in variety. Due to the ever-increasing demand, new cards enter the market very frequently with new features and benefits.
Banks and financial institutions go the extra mile to introduce new benefits and features in a card that categorizes the said card differently from the other versions.
For beginners, choosing among these many types of credit cards can be a daunting task, which is why this article will delve into the types of credit cards, and which ones are preferred as some of the best credit cards in India.
Credit cards can be categorized based on their credit limit, reward program, cashback programs, etc. Let us now understand the types of categories.
Classic Credit Cards
These are the ideal cards for beginners, as they come with less credit limit, which is ideal for people with no credit history. This card does not carry any additional benefits.
Silver Credit Cards
These are entry-level premium credit cards that are specifically designed for salaried employees, with a good credit report, and who want to avail premium rewards. This card comes with zero or very nominal annual fee, and its interest-free period ranges from 25 to 50 days.
Gold Credit Cards
These types of credit cards are issued to high salaried people against a good credit score. These cards come with reward programs on purchases, also come with insurance against loss or theft of cards.
Apart from these features, a family member of the primary cardholder can be added to the gold credit card.
Titanium Credit Cards
Titanium cards are also premium credit cards similar to the gold ones. These types of cards come with revolving credit facilities, meaning you can upgrade your card as and when you pay your debt, along with the reward programs, insurance and accident covers, and discounts at many retail and grocery stores.
Reward Credit Cards
These types of credit cards are designed for travelers or shoppers, where you get reward points every time you make a purchase, or book a hotel, or buy a flight ticket, or purchase fuel, and these points can be redeemed by the end of the month.
Business/ Corporate Credit Cards
These cards are for businesses, limited companies, banks, companies, partnerships on entertainment. These cards are generally issued to employees to keep track of the expenses made by them.
Prepaid Credit Cards
These types of cards are similar to debit cards, but in this case, banks let you deposit a fixed amount against which the credit limit of your card is fixed.
Although it is not a form of borrowed money, there are still reward points and cashback offers that the cardholder can earn, and it is suitable for people with low credit scores.
As you come closer to maxing out on your limit, you can deposit more money and get your card upgraded.
Balance Transfer Credit Cards
Banks allow their customers the option to transfer their outstanding amount of a credit card to a new card.
Most people with low credit scores do that and get the balance converted into easy EMIs with less interest rate. This lets the cardholder improve their credit score, as well as reduce the burden of debt.
There are many types of credit cards in the market, and some of the best credit cards in India are Rewards Credit Cards and Business/Corporate Credit Cards.
There are many other types, such as Secured Credit Cards, Credit Cards for Women, Student Credit Cards, etc. It is important to know what the right credit card is for you before you make a decision, and our handy guide will help you with your decision.