Types of Credit Cards in India

If you have never taken a loan and do not have a credit card yet, then you are considered to be new to credit by card providers. This is because you do not have a credit history. These cards usually have easier eligibility criteria and do not require a credit score. Hence, they are suitable for people who are new to credit. You can start your credit journey with a low annual fee credit card that offers regular benefits. Here are some of the credit cards that are best suited for people who are new to credit:

*Terms and conditions applicable.

People, who are earning Rs. 25,000 or less per month, can also get a credit card. Such people can compare & apply for credit cards that are specially designed for low-income earners. These credit cards usually charge a low annual fee. Despite charging a low fee and having easier eligibility terms, some of these cards offer good benefits on selected categories. Below mentioned are some of the top credit cards for low-income earners:

If you frequently travel internationally or domestically or both, then you should consider applying for a travel credit card. These cards provide travel benefits, such as lounge access, spa services at airports, low foreign transaction fees, discounts on rental services, hotel bookings and much more. The table below mentions some of the top travel credit cards available in India:

*Terms and conditions applicable.

Just like frequent travellers, shopping credit cards provide benefits to frequent shoppers. These benefits can be availed in the form of accelerated reward points, cashback, discounts, etc. The offers provided can range from apparel shopping to grocery shopping and much more. Below mentioned are the top shopping credit cards available in the market:

*Terms and conditions applicable.

Airline credit cards are usually co-branded with major airline brands like Vistara, Air India or Etihad Airways. Here customers can get accelerated reward points, lounge access, and much more when they use the credit card to avail services of the co-branded airline. These credit cards are best suited for those who are loyal to a specific airline brand. Some of the top airline credit cards are mentioned in the table below:

*Terms and conditions applicable.

Also Check: Credit cards with access to airport lounges

Generally, most of the credit cards offer reward points on online/ offline purchases. But there are cards that are specially designed to offer high rewards on all expenses along with accelerated points on certain expenditures. The reward points are usually a fraction of the amount spent. However, over time, users can accumulate the reward points and redeem them against items in the rewards catalogue, air miles, vouchers and so on. Look for some of the top rewards credit cards available in the market at the table below:

Through cashback credit cards, you can avail cashback on every purchase. The cashback provided can be used as a statement credit or for shopping. Some cards offer direct cashback while others allow you to convert reward points into statement credit. Here are some of the top cashback credit cards available in India:

*Terms and conditions applicable.

Fuel credit cards let their users save on fuel expenses in the form of discounts, rewards or cashback. Some of these cards are also co-branded with major fuel brands to provide free fuel or accelerated rewards to the loyal customers of the brand. In some cases, you can later redeem the earned rewards against your future transactions. Below mentioned are the top credit cards that offer benefits on fuel transactions:

Entertainment credit cards are designed to help you save more on your entertainment expenses, such as movies, events, etc. Some of these cards may be co-branded with entertainment brands like PVR and BookMyShow, while others may offer benefits across all entertainment expenses. You can look for the top entertainment credit cards in the table below:

Secured credit cards are issued against fixed deposits. These cards let you earn interest on the fixed deposit while you use them as collateral for your credit limit. These credit cards are perfect for those who have a bad credit score or who are new to credit. The top secured credit cards available in India are listed in the table below:

There are numerous credit cards available in the market for every user. However, while choosing the right credit card, you must consider the below-mentioned things in order to maximize your benefits:

Identify your needs

Credit cards come under multiple categories, such as travel, shopping, dining and more. The best credit card for you would be the one that fulfills your needs. In order to find the best credit card, it is important to identify your needs and spending pattern. For example, if you frequently shop online, a credit card that offers discounts or cashback on online shopping would be a perfect choice for you.

Check for eligibility before applying

You might get attracted to rich rewards and perks offered by premium credit cards. However, there might be a possibility that you won’t be able to qualify for such credit cards. These premium credit cards are offered to people who have a good credit score and longer credit history. You should always start your credit journey with a basic credit card that comes with relaxed eligibility and is offered to people with low or no credit history. To do so, you have to research different credit cards available in the market that best match your needs.

Look for fees and charges before applying

Besides eligibility, you must look for interest rates, fees and charges associated with the credit card before you apply. There can be a variety of charges that are applicable to your card. The things you need to keep a check on include finance charges, joining fees, annual/ renewal fees, transfer fees, foreign transaction charges, etc. Considering these charges can help you find better options than others as per your repayment capacity.

Remember, there is a wide variety of credit cards available in India. The total number of credit cards available for customers is above 350. In this scenario, it is up to you to make the right decision. Know your needs, do your research and then choose a card.