Credit Card Types: Which Fits your Needs?

2020 saw Indians use their credit cards to order food and groceries online as well as for shopping and utility bill payment, according to a survey conducted by Cred. Even as credit cards offer a convenient option to make payments, you must know about the different categories to zero upon the one which suits your requirements.

You can opt for reward-based cards such as lounge access credit cards, cash back credit cards e.t.c. or simply go for a basic credit card. Some banks might also offer you a free credit card with no annual fee. There are business credit cards, secured cards, store credit cards, and specialty cards as well. While, the best fuel credit card can help you save up on fuel charges for your car or bike. Let us take a look at the various credit card types to understand which one would be perfect for you:

1.Standard credit cards: These cards let you purchase on credit and make payment later and are suitable for beginners. No rewards or introductory offers are available.

2.No annual fee credit cards: Usually, a credit card attracts yearly charges, however, this fee is waived off for a lifetime free credit card. So, if you want to enjoy the benefits of credit cards, without paying anything extra, this is the best credit for you. Remember to make the payments on time to avoid the late fee.

3.Rewards credit cards: These are the most popular category of cards offering rewards on every purchase, which is either constant or variable, unlike a lifetime free credit card.. You might get credit card points or frequent flyer miles that can be redeemed later. Lounge access credit cards are suitable for those who fly frequently and prefer to relax and be comfortable during the journey. Depending on the benefits that they offer, they are categorized into:

–       Cashback credit cards

–       Gas or fuel credit cards

–       Grocery credit cards

–       Travel credit cards

–       Dining credit cards

4.Airline credit cards: You can either opt for benefits from a particular airline company or multiple airlines as per your choice when you apply for this card.

5.Sign-up bonus credit cards: If you are signing up for a credit card for the first time, the bank might offer you an introductory bonus card. The catch is that you have to spend the money specified by them during a certain time to avail of this offer.

6.0% APR credit cards: These cards offer new users a 0% interest rate during the beginning. So, if you plan to purchase something expensive, or transfer the balance from another credit card, these cards can be useful.

7.Secured credit cards: You have to open a security deposit equivalent to your initial credit line to be eligible for this card. It is a good option for those with a bad credit history looking to build or rebuild it.

8.Store credit cards: These cards let you earn rewards that you can then redeem at a retail store either as cashback, discount, or gift card.

9.Business credit cards: If you run a business and are looking for benefits on your advertising or shipping expenses, this card is for you.

So whether you are looking for the best fuel card or a lifetime free credit card, one that aligns with your spending needs can benefit you more. You can also choose from Credit cards available on Finserv MARKETS that come with great discounts and offers and let you convert your costly purchases into convenient EMIs. So, embrace the power of financial independence and apply for a credit card today!

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