A Beginner’s Guide To The Different Types Of Credit Cards
A credit card is an amazing financial tool in this age. It allows you to access quick credit depending on your income, which you can pay back later in a timely manner. Various banks and financial institutions offer different types of credit cards.
If you are looking for a credit card service and want to choose one that complements your lifestyle and spending habits, you should know about the different types of credit cards available in India.
- Regular Credit Cards
These credit cards are used my most people who are looking for instant credit to complement their lifestyle. A regular credit card helps the customer build a credit score if the credit card payment is done in a timely manner. It usually has a fees and charges an interest rate, depending upon the APR (Annual Percentage Rate) or MPR (Monthly Percentage Rate).
- Secured Credit Cards
With unsecured credit cards, you just need to be eligible and finish the initial documentation to receive your credit card. You don’t have to present any collateral. However, with secured credit cards, you have to deposit a certain amount to avail of credit. This is for people who want to build their credit history from scratch or improve their bad credit score.
- Cashback Credit Cards
Cashback credit cards earn you cashback on the purchases you make using the credit card. There is usually a percentage of cash which gets added back to your account. The cashback earned can be due to spending on a specific category, like utility, grocery, supplies, etc., or it can be based on rotating categories. You can apply for a cashback credit card using a credit card app online.
- Business Credit Cards
Business credit cards are designed to meet the financial needs of a business. They are used by businesses to get access to specific services tailored to their needs. Business credit cards can also be used for business spending and to avail of services such as travel lounge access, insurance coverage, and more. With a Yes Bank Credit Card for business, you can earn multiple reward points as well.
- Travel Credit Cards
These type of credit cards are perfect for frequent travellers. A travel credit card allows the card holders to get exclusive deals and reward points on travel-related spendings such as hotel bookings, flight bookings, car rentals, etc. The reward points and cashback earned on these cards can be used for further spending on travel.
Next time when you search for ‘Credit Card India,’ you will be well-aware of the different types of credit cards available in India and their benefits. There are other different types of cards such as shopping credit cards, student credit cards, even premium credit cards for high-spenders.
Before applying for a credit card, make sure that you decide on your credit card needs, choose a financial intuition of your choice and learn about all the terms, conditions and costs associated with the credit card properly.