✓ Fast Processing ✓ Great Discounts & Offers ✓ Easy EMI Facility | Apply for Credit Card now!

What are the Different Types of Credit Cards?

From co-branded credit cards for online shopping to travel credit cards for frequent flyers, there are various types of credit cards available in the market. In a market teeming with choices, finding a credit card that suits your lifestyle and spending needs can be daunting. Knowing about the different types of credit cards can help you make an informed choice and make your spending more rewarding. 

You can go through the following guide on the different types of credit cards available in the Indian market. While the list is not exhaustive, it does encompass the most common and popular credit card variants:

1. Travel Credit Card

Travel credit cards offer travel-related rewards and are best-suited for frequent travellers. Some offer air miles on travel transactions made with the card, while others offer redeemable rewards on all spends. The reward points earned on a travel credit card can be redeemed for booking flights and hotels, purchasing holiday packages or any other travel expense. 

The best travel credit cards also offer a host of premium travel-related perks including complimentary airport lounge access, discounts on travel bookings, and travel insurance. 

Some of the best secured credit cards in India include:

  • Axis Bank Vistara Signature

  • 6E Rewards XL -IndiGo HDFC Bank Credit Card

2. Fuel Credit Card

Fuel credit cards offer cashbacks, discounts, and rewards on fuel spends. The reward points collected on the card can be directly redeemed for fuel at gas stations. They also offer fuel surcharge waivers to lower your fuel expenses further. Some of the best fuel credit cards are co-branded cards launched in partnership with major fuel brands. Such cards offer accelerated reward points on spends made on fuel only at partner gas stations. 

Some of the best secured credit cards in India include: 

3. Rewards Credit Card

Rewards credit card is a type of credit card that offers reward points on every minimum spend. This minimum spend cap varies from lender to lender and can also change based on the spend category. The reward points collected can be redeemed against a rewards catalogue for airmiles, vouchers, merchandise, etc. 

Some of the best rewards credit cards in India include:

4. Secured Credit Card

Secured credit cards are issued against fixed deposits. Your fixed deposit amount acts as collateral for your credit limit. Secured cards are best-suited for first-time borrowers and those with a poor credit history.

Some of the best secured credit cards in India include:

  • SBI Unnati Credit Card

  • Axis Bank Insta Easy Credit Card

5. Business Credit Card

A business credit card is a type of credit card offered to business owners for work-related expenses. These cards typically come with a high credit limit, longer interest-free credit periods, accelerated cashbacks on business-related spends, etc. 

Business credit cards help fund and manage business expenditures by closing tracking expenses and cash flows. They also bring a host of business-related perks like cash advance facility, hotel and travel benefits, and insurance covers. 

Some of the best business credit cards in India include:

6. Student Credit Card

Student credit cards are beginner cards offered to college students with a limited credit history. Students above the age of 18 years can apply for these cards with minimum documentation. While student cards offer perks like Interest-free periods, reward points, and discounts, they also come with a limited credit limit. Student credit cards aid in making college-goers financially responsible and help them build a credit history.

Some of the best student credit cards in India include:

7. Cashback Credit Card

Cashback credit cards offer a certain percentage of your spends as cash back rewards. This usually varies from 5%-20% depending on the spending category. Cashbacks can be earned when you spend on bill payments, groceries, retail purchases, etc. Some cards offer a flat rate for all spends, while others offer an accelerated rate for preferential categories like travel or dining. These rewards can be availed as direct cash backs or as statement credits. 

Some of the best cashback credit cards in India are:

8. Lifestyle Credit Card

These credit cards offer tailored rewards to match your lifestyle expenditures. Lifestyle credit cards offer reward points, cashbacks, and discounts on specific categories like shopping, movies, dining, and travel. Some lifestyle cards also offer premium benefits like golf lessons, VIP airport lounge access, concierge services, etc. 

Some of the best lifestyle credit cards in India include:

  • Axis Bank Privilege Credit Card

  • HDFC Diners Club Black Credit Card

9. Entertainment Credit Card

An entertainment credit card is a type of credit card that brings rewards, offers, and discounts on entertainment-related expenses like booking movie tickets. Some cards may be co-branded, offering merchant-specific discounts on entertainment spends, while others offer rewards across merchants. Common perks include complimentary monthly movie tickets, accelerated rewards on spends at partner dining outlets, and movie ticket welcome vouchers. 

Some of the best entertainment credit cards in India include:

10. Shopping Credit Card

Shopping credit cards bring accelerated reward points on the online and offline purchase of apparels, groceries, electronics, gadgets, etc. This makes them perfect for shopaholics. Most shopping credit cards are co-branded cards that offer rewards, cashbacks, and discounts at partner stores and websites apart from flat rewards on other merchant spends. The best shopping credit cards offer an easy EMI conversion facility when product costs exceed a certain threshold. 

Some of the best shopping credit cards in India include:

How to Choose the Right Type of Credit Card

Follow these steps to find the best credit card suited for you:

1. Check Your Credit

Find out what credit card type you might be eligible for by checking your credit score. The better your score, the greater your chance of being approved for cards with better perks. You can successfully increase your credit score by ensuring that you lower your credit utilisation and by making your bill payments on time.

2. Goals

What do you wish to accomplish by owning a credit card? Do you wish to build up a great credit history or own a card that offers amazing travel perks? Answers to such basic questions will help determine which is the best-suited card available for you amongst the various types of credit cards in India

3. Debt

Have you accumulated high-interest credit card debt or other debts? In that case, to consolidate your debts during an introductory period, you may want to consider a balance transfer credit card. Alternatively, if you are free of any debt, you can consider other credit card benefits offered on credit cards like reward points, vouchers, or cash back.

4. Rewards Program

If your primary goal is to enjoy reward points on your credit card, then try and focus on researching for cards that offer the best reward programs. That could include cash back, travel rewards, or credit card points you can convert to air miles or use for hotel bookings. It is, however, important to note that whichever card you go for, it's best to choose one that lets you earn rewards where you currently spend the most.

5. Fees and Charges

Narrow your choices by comparing different types of credit cards in terms of their fees and carrying costs. A credit card's interest rate isn't the only thing you should take into consideration. You should also watch out for application fees, annual fees, late fees, and any other fees you may incur.

What are the Eight Different Categories of Credit Cards?

The eight different categories of credit cards include fuel credit cards, entertainment credit cards, lifestyle credit cards, business credit cards, contactless credit cards, credit cards for women, cashback credit cards, and co-branded credit cards.

FAQs on Types of Credit Card

✔️Which is the best credit card for fuel?

IndianOil CitiBank Platinum Credit Card and IndianOil CitiBank Titanium Credit Card are among some of the best credit cards for fuel.

✔️Which is the best credit card for online shopping?

 Lifestyle credit cards such as the Axis Bank Signature Credit Card are often considered some of the best credit cards for online shopping.

✔️Can I own two Credit Cards?

Yes. An individual can have multiple types of credit cards. However, it is advisable to disclose the details of your existing card when you apply for a second one.

✔️Which are the credit cards that offer the best benefits on travel?

These are several cards that offer some of the best benefits when it comes to travel. You could check various bank websites and compare the benefits offered by each travel card to choose the best one for yourself.

✔️Which Bank provides the best rewards on Credit Cards?

There are various banks that offer different rewards on different types of credit cards. It is advisable to choose the credit card reward program that best suits your financial and spending goals.

✔️Do we have to pay GST every time we renew a credit card?

No, you do not have to pay GST on the renewal of your card. However, it depends on the bank or financial institution issuing the card. Mostly, in the case of credit cards, if you are regular with your monthly payments, the GST regime will have no impact on you.

✔️What are EMIs on credit card purchases?

Some card-issuing banks or financial institutions offer customers the option of paying their bills in EMIs (equated monthly instalments). However, depending on the issuing bank, the EMI option will be applicable on selective purchases or the total outstanding amount.