One may wonder how many types of credit cards are currently available in the market. To be honest, the list can be endless. Technically, the category under which the credit card is issued helps differentiate between the different types of credit cards. Based on the applicant's requirements like lifestyle, travel, fuel, shopping needs, etc., the basic parameters vary for different credit card types.
|Fuel Credit Card|
|Travel Credit Card|
|Rewards Credit Card|
|Cash Back Credit Cards|
|Co-branded Shopping Credit Cards|
|Secured Credit Card|
|Lifestyle Credit Card|
|Prepaid Credit Card|
|Business Credit Card|
The credit limit on the credit card is the extent to which the cardholder can spend on the credit card. Based on the credit limit fixed by the bank, the credit card can be divided into the following categories.
Student Credit Cards – These cards are issued to college students. There is a low credit limit on these cards and charges a low rate of interest. However, they do not offer any additional benefits or rewards.
Whether you are looking for your first credit card or are simply exploring to find a credit card that can meet your ever-changing needs and requirements, the search between scores of different types of credit cards available in the market can be quite a task. But breaking down your key requirements to point-blank factors can make this task relatively easier. The factors that affect our choice of credit card are:
When we say, secured, it means the credit card is issued against a fixed deposit account running in your name in the same bank where you wish to apply for a credit card. The cardholder continues to earn the decided rate of interest on the fixed deposit. On the other hand, the credit card attracts finance charges and other charges. A secured credit card is typically a lifetime free credit card.
Cashback credit cards are credit cards that offer cashback as a reward. Under this credit card category, the reward points earned and amassed on the credit card during the year can be redeemed for cash credit in the card statement. This can be used to pay off outstanding card dues.
Credit cards usually charge a joining and annual fee. But these charges can be waived off in cards that come with a minimum spending linked clause. However, lifetime free credit cards have no joining fee or annual fee. They are issued against a security deposit with the bank, typically a fixed deposit.
More and more women are now working and are financially independent. Lending institutions acknowledge this change and have specifically designed credit cards, especially for their women customers. These credit cards come with a lower joining fee and annual charges. On the other hand, they are high on rewards, discounts, and lifestyle offers, a feature that typically attracts every woman. The credit limit on the card depends on the female applicant's income stature and credit score.
Visa, Mastercard, Discover, American Express and RuPay are the five major credit card networking partners in India.