The gaining popularity of credit cards is quite evident & can be seen denting an impact on the lending & borrowing space. Every other day we hear of newer cards being launched in the market to meet the detailed needs. Different cards enter the market with a whole new range of features and added advantages. These features are helpful in differentiating between different credit cards. Every interested individual is free to choose a credit card of use & choice. If you’re a novice, then beginner cards will do good.
Types of Most Featured Credit Cards
Here is a list of credit cards based on distinguishing criteria:
Basic Cards: This is a beginner level credit card, basically the ones new to using a card. The credit limit is small matching your income level & purchasing capacity. There are no as such additional benefits provided on a basic card.
Secure Cards: Individuals with poor credit history can be offered secure card by depositing an amount equal to the credit limit of the credit card. This amount works as a security against the credit card issued. If the payments are done on time consecutively over a few months, then the security deposit is gracefully returned.
Zero Fee Cards: A zero fee credit card doesn’t charge you an annual fee for usage. It is as good as a basic credit card or slightly above that level with a few more features perhaps. People who do not have too much to do with the credit card usually opt for zero fee credit.
Also read: 6 Things that Show on Your Credit Report
Low-Interest Cards: These cards offer lower rates of interest as compared to other available cards in the financial market. And it’s not the same as balance transfer cards which have 0% interest rate.
Rewards/Cashback Cards: A rewards credit card is certainly useful as it offers some kind of rewards for every rupee spent on the card. Every financial institution defines the number of reward points to be awarded on a specific transaction whether on grocery shopping, online bill payment or medical consultations. You can earn with all rewards card if used according to the directives. This one is as good as a cashback credit card where a pre-defined cashback gets credited.
Travel Cards: This card is extremely beneficial for frequent travelers as it offers benefits like travel insurance, global acceptance, good currency conversion rates, etc.
Shopping/Lifestyle/Entertainment Cards: These cards pretty much fall into the same category as they provide attractive deals and offers on specific card usage. Online and offline shopping can get you additional rewards for every purchase.
Premium Cards: Premium credit cards are specific to the elite class. It provides exclusive access to golf clubs, airport lounges, concierge service, insurance payments etc. It may also be packaged with complimentary travel and hotel stay vouchers. These cards also come with a personal relationship manager to manage assets of the cardholder. Any everyone gets approval for a premium card.
Co-Branded Cards: Banks/NBFCs come together introduce co-branded cards that offer special discounts and deals on a transaction. You can make all transactions with the card but those ones wouldn’t be so profitable. This is a strategy to expand clientele base for the brand.
