Download CRED
CREDcredit card paymentarticles
what are different types of credit cards? how to decide what’s best for you?

what are different types of credit cards? how to decide what’s best for you?

December 30, 2021
15 min read
share facebookshare twittershare linkedinshare whatsapp
share facebookshare twittershare linkedin

choosing a credit card has never been this easy

with a vast range of credit card options provided by dozens of card issuers, picking the right credit card can be tricky. each credit card differs from the other with varying benefits and uses. trying to figure out one that would suit you can be tricky and misleading. if you're on a journey to discover which card would be the most beneficial, you've come to the right place.
have you recently applied for a credit card? a quick tip from us to check out CRED before you make your credit card bill payment. CRED is an app that offers premium deals and rewards when you make your credit card payment on time. download CRED app now on your iOS or Android device!

different types of credit cards

credit cards can be categorised based on their benefits as well as their target users.

1. travel credit cards
whether you love taking frequent vacations or travel often on work, a travel credit card could prove to be worth it.
how do i benefit from this card?
for airline credit cards, you get points or miles on every purchase, which can later be redeemed for discounts on airfare and hotel stays. other credit card benefits may include complimentary airport lounge access, free check-in of luggage, free companion airfare, and air travel upgrades. if you travel a lot, you have the chance of accumulating a good deal of points and can cash them in for a free flight or discounted stay on your holiday.
although these cards generally come with a joining and/or annual fee, the benefits often outweigh these charges.
what are my options?
a few examples of travel credit cards include the HDFC All Miles credit card, Axis Bank My Wings credit card, Yatra SBI credit card, and the Citi Premiermiles credit card.

2. rewards credit cards
spend on a card that treats you back. reward credit cards are the in thing since they offer incentives depending on the frequency of their use. so essentially, it looks like
how do i benefit from this card?
rewards can be classified into three types—points, cash back, and discounts. you earn reward points or cash back in proportion to the amount spent. most banks have a rewards program, where you can redeem your points. if this is your primary card for shopping, travel, dining, etc., you could quickly accumulate a considerable amount of reward points that can be redeemed for exciting offers or deals such as led TVS or trips abroad.
the top-tier reward cards usually have a high joining and annual fee. to get approval for these cards, you would require a high credit score which is a result of good credit history. if you have an outstanding credit score, then you have the chance of getting the most out of it. you can cash in on a variety of additional rewards by making your credit card bill payments through the cred app. reward me!
what are my options?
some of the popular rewards credit cards are the Citibank rewards credit card and the Standard Chartered Platinum rewards credit card.

3. entertainment credit cards
if you have an exuberant social life which takes you outdoors often and leaves your pocket light at the end, then an entertainment credit card is your best bet!
how do i benefit from this card?
an entertainment card gets you discounts on movie tickets, shopping brands, restaurants and so much more. apart from this, you can also earn reward points on these transactions and further redeem them for travel bookings or gift cards.
what are my options?
a few examples of entertainment credit cards are the HDC Platinum times card and ICICI Bank Rubyx credit card.

4. fuel credit cards
with the increasing price of fuel, fuel cards have been designed to save money for those who frequently commute long distances for work or pleasure.
how do i benefit from this card?
there are two main features of a typical fuel card—reward points and fuel surcharge waiver. every time you use a fuel credit card at a fuel pump, you get points that you can redeem later; you can also avail a fuel surcharge waiver which is essentially a discount on your fuel bill.
what are my options?
some banks that provide this benefit are the IndianOil Citibank credit card, ICICI HPCL credit card and the Standard Chartered Super Value Titanium credit card.

5. golf credit cards
a golf credit card can certainly ‘putt’ a smile on your face if you’re a part-time golfer or a golf aficionado.
how do i benefit from this card?
some of the features that a golf credit card can provide a golf enthusiast are discounts, free memberships, and other special privileges at golf courses in India as well as abroad.
what are my options?
a few examples of golf credit cards include the YES Bank Mastercard credit card, Citi Prestige credit card, and Standard Chartered Visa Infinite credit card.

6. business credit cards
a business credit card is often misconstrued as a corporate card when it is, essentially a card that helps business owners manage their finances with ease.
how do i benefit from this card?
business cards generally have high credit limits and can be used to monitor employee spending. having a separate card for your business also makes it easier to sort out your transactions when it is time to pay taxes. a company can also avail hefty benefits like fuel surcharge waivers, airport lounge access, hotel accommodations, travel deals, and more.
what are my options?
a few examples of business cards include the SBI Platinum Corporate credit card, HDFC Corporate Platinum credit card, Kotak Platinum credit card and many more.

7. co-branded credit cards
if you want to double-up on benefits, you may want to look at co-branded credit cards. for example, the Fbb SBI STYLEUP credit card is a card issued by SBI that has a tie-up with Future Group, providing great value to those shopping on Big Bazaar, Food Bazaar, and standalone Fbb outlets.
how do i benefit from this card?
a co-branded credit card is essentially a card associated with a financial institution, travel aggregator or a retail brand. the benefits may vary depending on the tie-up, but the most common ones include rebates, insane discounts, and crazy offers.
what are my options?
popular co-branded cards include the IRCTC SBI Platinum credit card and the Jet Airways ICICI credit card.

8. insurance credit cards
an insurance credit card safeguards your family and you from unforeseeable events.
how do i benefit from this card?
an insurance credit card covers damages to a certain extent. insurance premium has to be paid without a break so that it doesn't compromise the insurance coverage. the common types of insurance offered by most banks are accident insurance, travel insurance, credit insurance, and purchase insurance.
what are my options?
the Standard Chartered Visa Infinite credit card and HDFC Bank Regalia credit card are few of the many cards that offer insurance benefits.

9. student credit cards
a student credit card is typically reserved for college students above the age of 18 with little to no credit history.
how do i benefit from this card?
these cards are quite easy to qualify for, compared to other credit cards since most banks provide ₹15,000 (on average) as the credit limit. a student credit card is a great way to build a good credit score and qualify for higher tier credit cards, offering greater credit limit, in future. other features include joining fee waiver and low annual charges, less documentation and relatively greater validity period (5 years) when compared to regular credit cards (3 years).
what are my options?
although student credit cards are a relatively new concept in India, there are a few banks that provide this facility. some of them include the SBI Student Plus Advantage credit card and the ICICI Bank Student Travel card.

frequently asked questions (FAQs)

what’s the best credit card out there?

while this may sound redundant, the best credit card you can avail is the one that suits you best. much like a smartphone, there are multiple options with different features, price points and other considerations that appeal to people with different needs. naturally, even if you get a credit card which is extremely prestigious to own as a status symbol, it might not be the most suitable one for you.

i know what card is suitable for me. will i get it easily?

the eligibility criteria for every type of credit card is determined solely by the bank as different banks have different criteria when approving a credit card. the main areas banks look at are your monthly income, credit score, and credit history. the higher credit limit you seek, the stricter the evaluation for approval. one of the best ways to improve your credit score and get approvals for credit cards is the timely payment of your credit card bills.

is there a cool app that rewards me for the timely payment of my credit card bills?

yes. CRED is the only platform where you can get rewarded for making your credit card bill payments on time. these include exclusive rewards, cashback, deals & discounts. download CRED app today.