Common types of credit card and their benefits
Banks offer different types of credit cards with unique features and benefits to cater to the specific needs of their customers. For example, some credit cards offer rewards programs that allow customers to earn points for every purchase. These points can be redeemed for travel, shopping, or cash back. Other credit cards offer low interest rates, which can be helpful for customers who carry a balance from month to month.
But before choosing the right credit card, it is crucial to understand its types to maximise the benefits. Here is a brief overview of some of the most common types of credit cards, along with their features, benefits, and available offers.
- Shopping credit card
Most banks tie up with online and offline stores to offer customers exclusive discounts. Using a shopping credit card allows you to enjoy huge discounts on your purchases and earn cash back and vouchers.
- Secured credit cards
A secured credit card requires a deposit to open an account. The deposit you make serves as collateral against the purchases you make with the card.
- Credit card for travelling
A travel credit card offers various benefits like free access to spa services and airport lounges, low transaction fees for international payments, reward credits on travel miles, discounts on hotel bookings, and much more.
- Fuel credit cards
If you commute regularly, you can apply for a fuel credit card to save on fuel expenses. This type of credit card gives you benefits like fuel surcharge waiver and cashback when you purchase fuel.
- Reward credit cards
A reward credit card offers accelerated points on your daily purchases. Although the points may not seem like much at first, they can add up quickly if you use the card regularly.
- Business credit cards
Business credit cards are specifically designed for business purposes. These cards are used to cover business expenses. For small businesses, they provide a way to keep track of expenses and make purchases without having to rely on personal credit cards. For larger businesses, they can help to streamline expenses and increase efficiency.
- Cashback credit cards
Cashback credit cards are popular among shoppers to save on everyday purchases. With a cashback card, you can earn a certain percentage of your total expenses back in the form of cashback, which can be redeemed later.
- Co-branded credit cards
These cards tie up with specific brands and offer perks and rewards for shopping with those brands. For example, IDFC FIRST Bank Sodexo Premium Pass offers tax-saving benefits and exclusive discounts. Similarly, the IDFC FIRST Bank Sodexo meal card offers quick payments at Sodexo merchant outlets and other tax-saving benefits.
Know how to get a credit card instantly
The easiest way to get a credit card is to apply online from your selected bank’s website.
- Visit your bank’s website.
- Explore the different credit cards offered by the bank.
- Compare their features and benefits
- Choose the right card per your spending habit and click the ‘Apply’ button.
- Provide the required details and upload the required documents.
- Finally, submit your form.
Now that you understand the different types of credit cards on the market, it’s time to start availing of all offers. Consider your spending habits and compare different credit card offers to find the one that benefits you most.