Between 2018 and 2019, Indians transacted around Rs.6.07 lakh crore using credit cards. This number was just Rs.4.6 lakh crore in the previous year. Thus, with more people opting for such financial products, proper assessment of credit card options is crucial.
Financial institutions offer various types of credit cards to eligible applicants. One should understand how each type differs from the others before he/she picks the card that suits their needs best.
Credit card types
The type of card an individual avails generally depends on his/her purchasing patterns. For instance, if one tends to use credit cards for shopping, picking a card that provides greater rewards on such purchases can be beneficial.
Listed below are some common types of credit cards that you should know about –
Lifestyle cards
Individuals who spend a lot can choose from various types of credit cards. Nonetheless, lifestyle cards offer a plethora of rewards and offer when it comes to undertaking recreational activities.
Thus, with such a card, one can claim higher reward points on travel, entertainment, and dining expenses. Cardholders can also enjoy additional benefits, including free movie tickets or free buffet meal vouchers.
Credit cards for women
Several NBFCs offer specialized credit cards to women, which come with a wide range of benefits, offers, and reward point facilities. Apart from attractive discounts and cashback offers related to shopping, these cards for women may provide additional benefits, including waiver on fuel surcharge or discounts on insurance premiums. With such products, women can truly get the most out of their credit cards.
Business cards
As the name indicates, these credit cards are specifically designed to aid business owners in their financial needs. Whether you need to purchase office supplies or pay for utility bills, opting for such a card can mean instant access to liquidity in your enterprise’s time of needs.
These cards offer cash back on purchases from certain outlets. Furthermore, they also grant special rebates on travel expenses since business owners tend to move a fair bit.
Secured credit cards
By definition, credit cards offer unsecured advances, meaning that cardholders do not need to hypothecate assets to avail of these. Nevertheless, one can opt for secured credit cards as well; NBFCs offer such cards against fixed deposits.
Secured credit cards represent a useful option for individuals with poor CIBIL ratings. Consequently, they can use such a credit card to improve their credit score.
Nevertheless, one must remember that the credit limit on secured cards is a discounted amount of the fixed deposit sum.
Premium cards
Individuals enjoying a substantial income can avail of these premium credit cards, which come with an increased credit limit, free access to airport lounges, additional offers, and reward points.
Moreover, if you are a frequent flyer, such premium cards can save your hard-earned money by offering rebates or cashback on flight tickets.
Some premium credit cards, such as the Bajaj Finserv RBL Bank SuperCard, offer these benefits at affordable annual fees. Moreover, such a card offers the features of four cards in one. So if you want to apply for such credit cards just go through the official website.
After availing of a card, one must work toward improving the credit card limit. One of the simplest ways to achieve the same is to pay the dues on time. Rather than paying the minimum amount, ensure you always clear the entirety of your monthly bills.