Finance

Explore Various Types of Credit Cards and Their Unique Benefits

With rising income levels, India’s credit card market has seen significant growth over the years. As of January 2024, there are over 10 crore credit cards being actively used in India. It shouldn’t be a surprise to know are many different types of credit cards to cater to this growing market; so many that choosing one can be a difficult task! 

Whether you’re a frequent shopper, traveller or someone building credit with a credit card on FD as security, there is a card for everyone. Each card has different features which can benefit you in the long run. Continue to read and understand their benefits in depth.

1. Rewards Credit Cards

  • These cards provide you reward points on various expenses like fuel, travel, entertainment, grocery shopping and more. 
Feature Benefit
Earn points per spend Redeem for travel, shopping or gift cards
High cashback on specific categories Maximise savings on daily expenses
  • These are ideal for you if you are a frequent shopper or plan to use your card for daily purchases and want to earn tangible rewards.
  • For instance, these cards may provide 2X reward points on air ticket purchases and 3X reward points on dining.

2. Travel Credit Cards

  • Designed for those who love to travel for leisure and/or work, these cards offer travel benefits like free lounge access, discounts on flights and train tickets and so much more.
Feature Benefit
Frequent flyer miles Discounts on tickets or free flight tickets
Airport lounge access Comfort and convenience during travel
Travel Insurance Peace of mind while travelling
  • These cards are a perfect choice for you if you are a frequent flyer. 
  • With these cards, you can enjoy offers like 5X miles on airline bookings.
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3. Cashback Credit Cards

  • These cards provide you with a percentage of your spending back as cash or statement credit.
Feature Benefit
Fixed cashback rate Consistent savings across all transactions
Category-based rewards Higher cashback on fuel, dining, groceries, etc.
  • It is an ideal choice for you if you are looking to save on daily expenses.
  • Example: Get 5% cashback on utility bills and fuel purchases

4. Secured Credit Cards

  • Secured credit cards are backed by collateral, often in the form of a fixed deposit (also called a credit card on FD).
Feature Benefit
Low credit score requirement Accessible for credit-building
Fixed deposit as collateral Minimises risk for the bank
  • If you are a new user, who is looking to build your credit score, this card can be a great option.
  • Card limit may equals 80% to 100% of the FD amount.

5. Business credit cards

  • If you are an entrepreneur or a small business owner, then this credit card offers rewards and tools to manage expenses.
Feature Benefit
Expense tracking Simplifies bookkeeping
Employee cards Monitor and control spending of employees
Business rewards Cashback on office supplies, business travel perks, and more
  • Ideal for: Entrepreneurs and startups.
  • Example: 2% cashback on business travel and electronics purchases. 

6. Student Credit Cards

  • If you are a college student, these cards help you to build your credit profile while charging minimal fees.
Feature Benefit
Low annual fees Affordable for students
Credit-building  Introduces financial responsibility
  • Ideal for: College students with no prior credit history.
  • Example: Bonus points for on-time payments.
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7. Premium Credit Cards

These high-end cards offer you exclusive perks like:

  • Concierge services
  • Luxury hotel stays
  • Higher reward rates
  • Premium complimentary airport lounge access
Feature Benefit
Concierge services Personalised assistance
Luxury travel benefits VIP lounge access, free upgrades
  • Ideal for: High-income individuals seeking exclusive benefits.
  • Example: Free rounds of golf every quarter at domestic and international gold courses. 

8. Fuel Credit Cards

  • If you are thinking about saving on fuel purchases and reducing your transportation costs, these cards are a perfect choice.
Feature Benefit
Fuel surcharge waiver Saves money on every fuel transaction
Reward points on fuel spends Redeemable for discounts or cashback
  • Ideal for: Frequent commuters and vehicle owners.
  • Example: Waiver on fuel surcharge at partner petrol pumps and accelerated reward points on refuelling. 

9. Lifestyle Credit Cards

  • Lifestyle cards provide you with benefits in entertainment, dining, and shopping.
Feature Benefit
Dining discounts Save on restaurants and cafes
Entertainment offers Exclusive deals on movies and events via booking platforms 
  • Ideal for: Individuals who want to save more while enjoying life with a range of activities and events. 
  • Example: 20% off on dining at partner restaurants.

10. Balance Transfer Credit Cards

  • These cards allow you to transfer existing credit card balances to one with a lower interest rate.
Feature Benefit
Low- or zero-interest period Helps pay off existing debt
Consolidate multiple balances Simplifies financial management
  • Ideal for: Those looking to manage or reduce credit card debt.
  • Example: Benefits like 0% interest for 6 months on transferred balance.
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How Can You Choose The Right Credit Card?

Take a look at the table below to get a quick list of terms to consider in order to make an informed choice:

Criteria Key Questions To Ask
Spending habits Do you spend more on travel, dining, or fuel?
Financial goals Are you building credit or maximising rewards?
Income eligibility Does the card match your income bracket?
Fees and charges Are the annual fees justified by benefits?

Benefits of Using a Credit Card on FD

If you are new to credit or have a poor credit score, a credit card on FD offers a safe and effective way to build credit while enjoying basic credit card benefits.

Key Advantages:

  • Low Risk: Banks are protected by the fixed deposit, making it accessible to more applicants.
  • Improves Credit Score: Responsible usage helps in credit score improvement.
  • Flexibility: Use the card for regular purchases and earn rewards like any other credit card.
  • Minimal Requirements: No need for an excellent credit score or high income.

Whether you’re looking for an instant approval credit card or exploring options like an FD credit card, being well-prepared and informed is the key to fast approval.

For greater rewards and stronger financial management, you can use the One Credit Card. It is totally free and you do not need to pay any joining fee, annual fee or hidden charges. It 

powerful mobile app, the OneCard App, helps you to track your expenses and set your budget category-wise. So, what are you waiting for? Apply now and enjoy a world full of benefits! 

Michalle Scote

I'm Michalle Scote, an SEO expert and guest blogger known for my contributions to multiple niches. My expertise spans across the business, fashion, technology, and travel industries, allowing me to offer a unique perspective in each area. With a deep understanding of SEO strategies and a knack for creating engaging content, I consistently deliver insightful articles across various platforms.

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