Every credit card available in the market varies from the other in terms of such benefits. Knowing the different types of credit cards and their features is crucial to understanding how you can maximize your benefits. Here’s a look into the world of credit cards so you can choose the ideal one for yourself.
Different Types Of Credit Cards
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Cashback Credit Cards
This card offers cashback on most transactions, starting at 1% and going up to 25% based on the following:
- Category of purchase
- Offers from partners
- Amount spent in a single transaction
This type of card is ideal for reducing your expenses, allowing you to save on:
- Utility payments
- Retail and grocery purchases
- Fuel purchases
- Booking movie tickets
Such cards also offer dining deals and fuel surcharge waivers.
Using this credit card for daily expenses can help you save more, but this depends on the types of cashback it offers. For example, the Amazon Pay ICICI Credit Card has no joining fee or annual fee, and provides a 5% cashback on purchases on Amazon as a Prime member and 1% cashback on most other transactions.
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Travel Credit Cards
These credit cards are issued by banks in collaboration with travel companies or airlines and provide rewards when you book tickets and travel packages. You can also earn more points on travel purchases and use them to pay for other holiday expenses or convert them into air miles.
Other benefits of such cards include free domestic and international airport lounge access, free checked baggage, and ticket upgrades. These cards may come with a joining and/or annual fee, which you can offset by spending a certain amount in a year.
An example of such a card includes the Axis Atlas Credit Card, which comes with a joining and annual fee of ₹5,000. It offers 2500 EDGE Miles as a joining bonus and allows you to earn 5 EDGE Miles on all travel bookings.
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Entertainment And Lifestyle Cards
Of all the different types of credit cards, this one is for you if you love movies, attending concerts and other events. Use it to get BOGO (Buy One, Get One Free) offers on movie tickets, discounts on events in your city, and more.
Its partners include theatres, entertainment platforms, and other aggregators. Such cards also offer lifestyle, dining, shopping, and travel benefits, as well as points on different purchases.
An example of this type of card is the PVR INOX Kotak Credit Card, which has no joining fee but an annual renewal charge of ₹499. It offers a 5% discount on booking tickets on Inox and a free ticket worth ₹300 every month for crossing a certain spending threshold.
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Fuel Credit Cards
Fuel credit cards are provided through collaborations between oil companies and partner banks. They offer fuel points or cashback on fuel purchases from any petrol pump owned by these companies, as well as waivers on fuel surcharges.
Apart from lowering your fuel expenses, these cards allow you to earn reward points and benefit from dining offers and concierge services. For example, the BPCL SBI Credit Card gives you a valueback of 4.25% on purchasing fuel from BPCL fuel stations and 13X points. It also has a waiver of up to ₹100 a month on the fuel surcharge. You can use reward points to purchase fuel, too.
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Student Credit Cards
The advantage of credit cards designed exclusively for students is that they come with a lower interest rate and have many discounts and offers. In most cases, such cards are linked to a loan from a bank and help students over the age of 18 save more and build a credit history.
As a student, you can benefit from easy access to funds in times of need and save more on purchases related to your academic and personal life. The ISIC Student ForexPlus Card from HDFC Bank, for example, is meant for students studying overseas.
It is available in multiple currencies, like EUR, GBP, and USD, and offers a number of free insurance covers, like:
- Protection up to ₹5 Lakhs against misuse
- Protection up to ₹20,000 for loss of checked-in baggage
- Protection up to ₹60,000 for loss of cash in transit
It also gives students discounts on over 1.5 lakh products and services across 130 countries.
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Secured Credit Cards
This credit card is secured by a fixed deposit with the issuing bank. It helps you get access to a credit card if you are new to credit or do not have a good score. Such a card helps you build your credit history as long as you pay bills in full by the due date.
It is a great way to get some exposure to credit and become a responsible user. Such a card is usually your first experience with a credit card and allows you to become eligible with ease.
Based on how well you use it, you can apply for a regular credit card in time. It also comes with lower fees and charges and offers you a range of deals.
For instance, the One Credit Card + FD combo is a secured card that you can get by starting a fixed deposit of just ₹2,000. It gives you a credit limit that is 100% of your FD amount, which can go up to ₹1 lakh.
You can continue earning interest on your FD while you use your card and improve your credit score simultaneously. Easy conversion of big-ticket bills into EMIs and the availability of an instant virtual credit card are other benefits you can enjoy.
Keeping these types of credit cards in mind, you can choose a card that suits you most. You can find more varieties of cards in the financial marketplace, such as:
- Premium credit cards
- Lifetime-free credit cards
- Business credit cards
By selecting the right card, you can enjoy perks that improve your purchasing power while upgrading your lifestyle. If you are looking for a card that is a true all-rounder, go for the One Credit Card. It gives you discounts on various purchases, such as food delivery, electronics, travel, shopping, and more.
You can also earn 5X reward points on your top two spend categories and manage your card on the powerful, full-stack One Credit Card App. Apply online on the app or the website now and enjoy a range of perks!