5 Types of Credit Cards in India

Posted on Monday, September 23rd, 2024 | By IndusInd Bank

In today’s fast-paced world, a credit card is more than a luxury. Having a credit card offers convenience while spending money. You can book flights, shop online, or dine out using your credit card. But choosing the right credit card among so many options can be overwhelming. Hence, it is important to first understand the types of credit cards that are available. This can help you make an informed decision.

This blog explains about the five types of credit cards. A comparison of their unique features will help you choose the best one for your needs.

1.     Reward Credit Cards

Reward credit cards are perfect for those who want to earn points or cashback on their spending. These cards offer rewards for every purchase you make. You can redeem the reward points against various benefits, including gift vouchers, air miles, and even discounts on products and services. Reward credit cards are ideal for frequent shoppers and travellers. They can use this card to maximise their spending benefits.

Features of Reward Credit Cards:

• Earn points or cashback on every transaction.
• Redeem points for gift vouchers, air miles, and discounts.
• Higher rewards are available for specific categories like dining, shopping, or travel.

IndusInd Bank Legend Credit Card & IndusInd Bank Pinnacle Credit Card are good reward credit card options.

2.     Travel Credit Cards

For frequent travellers, travel credit cards are a great option. They offer several perks that are useful during travel, such as free airport lounge access, air miles, and travel insurance. Travel credit cards make travel for business or leisure easy. They provide substantial travel-related benefits. These cards can enhance your travel experience and provide value for your money.

Features of Travel Credit Cards:

• Earn air miles on every purchase.
• Complimentary airport lounge access.
• Travel insurance and emergency assistance.

Travellers can consider IndusInd Bank Avios Visa Infinite Credit Card

3.     Cashback Credit Cards

Cashback type of credit cards has a straightforward benefit. They offer to give a percentage of your spending back to you as cash. This is perfect for people who prefer immediate savings rather than accumulating reward points.

Features of Cashback Credit Cards:

• Earn a percentage of your spending back as cash.
• Extra Cashback on specific categories like groceries, fuel, and utility bills.
• Easy redemption of cashback.

IndusInd Bank Platinum Aura Edge Credit Card are perfect for individuals who want to save money on their everyday expenses.

4.     Secured Credit Cards

Secured credit cards are ideal for individuals with a low credit score or those new to credit. These cards require a fixed deposit as collateral, which determines your credit limit. Secured credit cards are a great way to build or repair your credit history.

Features of Secured Credit Cards:

• Available for individuals with low or no credit score.
• Requires a fixed deposit as collateral.
• Helps in building or improving your credit score.

5.     RuPay Credit Card

RuPay credit cards are part of India’s domestic card scheme. They integrate with a secure and efficient payment platform. These cards promote cashless transactions in India. They also provide unique benefits tailored to Indian consumers.

Features of RuPay Credit Cards:

• Lower processing fees compared to international card networks.
• Special offers and discounts on domestic transactions.
• Enhanced security features for safer transactions.

IndusInd Bank’s Platinum RuPay Credit Card is an excellent choice. By having these kinds of credit cards, you can support India’s domestic card network while enjoying the benefits of a credit card.

Tips for Choosing the Right Credit Card

Selecting the perfect credit card can be a daunting task. Here are some tips to help you make an informed decision:

1.      Assess Your Spending Habits

Identify where you spend the most money—be it shopping, travel, dining, or fuel. Choose a card that offers the best rewards or cashback for these categories.

2.      Consider the Fees and Interest Rates

Look into the annual fees, interest rates, and other charges associated with the card. Some cards offer a waiver of annual fees for the first year or upon reaching a certain spending threshold.

3.      Evaluate the Rewards Program

Compare the rewards programs of different cards. Some may offer higher points or cashback for specific spending categories.

4.      Check for Additional Benefits

Look for cards that offer additional perks such as travel insurance, concierge services, and exclusive access to events and lounges.

5.      Read the Fine Print

Understand the terms and conditions, including the expiry of reward points, redemption options, and any limitations on earning rewards.

By following these tips, you can find a credit card that aligns with your lifestyle and maximises your benefits.

Also Read: Benefits of a credit card – 10 reasons why to use a credit card

Conclusion

Choosing the right credit card significantly enhances your financial experience. This is applicable whether you’re looking for rewards, travel benefits, or straightforward cashback. IndusInd Bank offers a wide range of credit cards tailored to meet various needs.

Explore the different types of credit cards IndusInd Bank offers and find the perfect card that suits your lifestyle and spending habits. Visit IndusInd Bank Credit Cards to learn more and apply now!

Disclaimer: The information provided in this article is generic and for informational purposes only. It is not a substitute for specific advice in your circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for making any financial decisions based on the contents and information.