Different Types Of Credit Cards In India
Credit cards can make a lot of things easier. With these, you can buy things on credit every month and pay off the balance at the end of the month. Credit card companies usually let you pay either the full balance or a set minimum amount each month. In India, credit cards have been becoming more popular than debit cards. There are many types of credit cards to choose from. Each card is different and meets a different need. The benefits that come with these are also different. In this article, we will discuss the various credit card types and their benefits.
- Silver Credit Cards
A silver credit card is the first premium credit card you can get. It has more benefits than a regular credit card, but not as many as a gold or platinum one. People who get a salary and want premium perks can apply for a silver credit card. Most of the time, the card has no fee or a very small annual fee. Those who have good credit can apply.
- Gold Credit Cards
Gold credit cards are high-end cards for people with high incomes. You can only get it if you have a good credit score. These cards have higher credit limits and can be used to get up to 100% of their value in cash. They offer better rewards on purchases and access to restaurants and airport lounges that other cards don’t. You can get cashback on travel and lodging. A gold cardholder gets more than just high rewards. They also get cashback offers, reward points, and free travel insurance. Some gold cards are also covered if they are lost or stolen.
- Business/Corporate Credit Cards
Business or corporate credit cards can be applied for by corporations, limited liability companies, banks, government-owned companies, and partnerships. No matter how big or small your business is, you can get one of these if you need to keep track of your business expenses. Anyone with an office, no matter how big or small, can get a business credit card. Executives of a company can use these for the company. The company can limit how much credit employees can use each month to help them spend less.
- Entertainment Credit cards
An entertainment credit card, as the name suggests, can save you money when you buy entertainment products. You might be able to buy one movie ticket and get another one for free. You can use points to buy lifestyle goods or trade them for rewards. When you book a trip, you can get perks. You can buy plane tickets, or hotel stays with the points you earn.
- Travel Credit Cards
Most of the time, banks offer travel credit cards in partnership with an airline or travel agency. This type of credit card pays you points or miles for making both travel purchases and everyday purchases. Once you have enough points or miles, you can trade them for things like hotel stays and flights. When you make reservations through the associated airlines and booking services, you can get special discounts and perks with the associated credit cards. The cards have perks like air miles, rewards points, and access to airport lounges.
- Credit Cards for Women
There are various types of credit cards for the needs and preferences of women. When you use one of these, you can save money at a wide range of stores, such as supermarkets, grocery stores, and department stores. In addition to discounts on clothes and accessories, women’s credit cards often come with extra perks like free dinners and other perks tailored to the cardholder’s interests and way of life.
- Prepaid Credit Cards
A prepaid card is a type of credit card that lets you use money that you have already put on the card. Prepaid cards make it harder to spend more than you have. They are safer than cash, easy to use and reload, and a good alternative to credit or debit cards. You can put a certain amount of money into an account at the bank. This amount becomes your credit limit. You can swipe the card up to this amount. Every time you pay with your card, the amount is taken out of your account.
- Student Credit Cards
Student credit cards are made for college students or people who want to go to college. The interest rate is very low, and these can be used for five years. To get the card, a student must be at least 18 years old. Compared to other credit cards, these have very low credit limits. The goal is to keep the student from spending too much and getting stuck in a cycle of debt. The customer does not have to show proof of income to get a student credit card. Many banks and credit unions now offer student credit cards as an extra service.
- Subprime Credit Cards
People who don’t meet the usual requirements for a credit card may be able to get a subprime credit card. Most of the time, these people have low credit scores. People who lend money to people with bad credit are often given “second chance” loans. People with low credit scores, missed loan payments, or bankruptcies are given these cards. The credit limit on these cards is very low, and the interest rates are very high. These credit cards in India are only given by a small number of banks and other financial institutions.
- Virtual Credit Cards
A virtual credit card is a type of credit card that can only be used once and only exists in digital form. It can only be used to make virtual purchases. This keeps fraudulent charges from being made to the real credit card accounts of users.
Advantages of Virtual Credit Card:
- Virtual credit cards are safer than regular ones because they don’t give the vendor access to your personal information.
- These are given to people who don’t have credit cards
- They make it easier to buy things online
- Cardholders can immediately block their virtual credit cards in case of a threat
- If your virtual credit card runs out of time and you still have credit left, it will be moved to your main credit card
- Banks and credit card companies offer virtual credit cards at no extra cost
- Virtual credit cards can be used for all kinds of transactions, both at home and abroad.
Conclusion
Users should know everything there is to know about fees and interest rates on credit cards. In India, there are many types of credit cards to choose from. It’s up to you to decide which option is the best. You should think about what you want, research, and then choose a card. With the information in this article, you should be able to choose the credit card that meets your needs the best. Visit Piramal Finance for easy and customised credit card and personal loan solutions.