A variety of credit cards are offered by financial institutions worldwide, and from a glance, it can be quite frustrating to decide which credit card type to invest in. We elucidate the different types of credit cards to you so that you can make an informed decision on what type suits your needs best.
1. Rewards credit card
Purchasing a product has become a lot more enjoyable with this type of credit card. The rewards credit card provides consumers with the benefit of availing themselves discounts or offers after every purchase. Normally, a credit card purchase is supported by some redemption points that eventually accumulate and can be availed in terms of discounts and offers at different outlets. These discounts can also appear in the form of monthly credit card bill deductions. The type of reward you get depends on your credit card eligibility and the credit card type you own. Every credit card is espoused by a reward rate, which is calculated on the amount you’ve purchased. Most reward rates are flat rates where, for instance, you earn 1 point for every 1 rupee you spend, or 1% cashback. Flat rates are the most common type of reward points that exists. Rewards credit cards exist in several forms. Some rewards credit card types include grocery credit cards, fuel credit cards, cash back credit cards, streaming facility credit cards, and dining discount credit cards.
2. Travel credit card
Travel credit cards extend multiple benefits and are preferred by frequent travelers. They can be classified into three types, namely, flexible, hotel, and airline travel credit cards. It is not uncommon to hear about hotel loyalty programs being extended in the form of the hotel’s credit card to consumers, who utilize a hotel’s services. These hotel rewards are also sometimes offered in the form of grocery and gas discounts. Paying extra for a credit card can offer consumers supplementary benefits in the form of airline rewards. Airline rewards appear in the shape of priority boarding passes, and free checked baggage. Getting a free air ticket after reaching an aggregated point limit is also conventional. Acquiring free hotel stays for your anniversary and birthday, or room upgrades are also included as a benefit for travel credit cardholders.
Here are 5 Types of Credit Cards to Suit Your Needs
In the recent past, premium travel credit cards have become all the rave amongst consumers. With an annual fee as high as 550 dollars, an individual can receive benefits such as free airport lounge memberships, travel upgrades, and travel credits. The only drawback of this type of credit card is the maintenance one would have to deal with in terms of their credit score. A consistent credit score of 740 and above, and at least one credit card showcasing a positive credit history is necessary to keep this credit card type.
3. Business credit card
Catering to the requirements of a budding Chief Executive Officer, business cards aid in the expenditures an individual would have to make while holding such an esteemed position. This card allows you to maximize any potential business transactions while reducing the burden of the bills you would have to pay. The rewards come in the form of fuel discounts, office supply allowances (store dependent), cash backs, and provision of offers for redeeming online facilities such as social media advertising services.
Disclaimer: Some online platforms group fuel credit cards with business credit cards as they complement each other in terms of the rewards they offer. Other platforms classify fuel credit cards as rewards credit cards. Regardless, fuel discount for vehicles is one of the most customary rewards a credit card can offer, and while it can be a distinct credit card type, we pair it with the business credit card and rewards credit card for ease in classification.
4. Secured credit card
Credit cards can be divided into two main types and understanding these two types is essential before investing in a credit card. The two main credit card types are secured credit cards and unsecured credit cards. Unsecured credit cards are termed as ‘unsecure’ because of the lack of a security deposit needed to attain this credit card. Secured credit cards are mostly held by individuals who lack financial responsibility due to their bad credit card histories. Unsecured credit cardholders are most likely to get greater reward benefits because of the trust financial institutions have in their sense of financial accountability. Although cashback and travel rewards can be availed as a part of this credit card, the unique rewards offered are the provision of augmenting your credit score and gaining attractive interest rates.
5. Shopping credit card
Most common amongst youngsters, this credit card provides individuals with discounts on products and services in malls, shopping outlets, and e-commerce platforms. The type of benefit this card offers is the least common because it is least likely to ease your everyday life. Nonetheless, it is invested in quite a bit, especially amongst youngsters these days.
Luxurious and practical credit card investments
Envied by many, the Bajaj Finserv credit card department and the RBL Bank credit card department have joined hands to establish the Bajaj Finserv RBL Bank SuperCard. This SuperCard comes with the benefits of four distinct cards in one and is thus known as an all-in-one card. To enjoy the benefits offered by this card, the individual must just be at least 25 years of age and has to maintain a minimum credit score of 750. A mere submission of a credit card application online allows you to enjoy all the rewards that come along with this prestigious card.