Credit Cards are plastic cards that render you the capability of making monetary transactions with others. Therefore, one does not need to carry cash all the time as credit cards provide you an alternative to making payments. There exist several types of credit cards one can put into use.

One applying for a credit card is required to pay a joining fee and an annual subscription fee among other subsequent charges. Also, one must make the timely payments of the outstanding bills to ensure the least charges.

Different Types of Credit Cards

Business Credit Cards

Business credit cards allow businesses to make financial and monetary transactions instead of individuals doing so. The business is considered as an entity to whom the credit card is issued, irrespective of the size. The procedure to obtain a business credit card is similar to that of other credit cards.

Examples of business credit card

  • SBI Platinum Corporate Credit Card
  • HDFC Business MoneyBack Chip Credit Card
  • Axis Bank MY Business Credit Card
  • Citibank Corporate Card

Merits of business credit cards

  • Available to all businesses ranging from small to big. Hence, it is open to all businesses.
  • Application for the credit card can be made even without an employer identification number.
  • Facilitates a separate payment mode for the business from an individual.
  • Helpful in accounting and tax assessment.
  • Travel benefits are sometimes provided.

Demerits of business credit cards

  • Have higher interest rates.
  • Unsecured credit card debt.

Personal Credit Cards

Personal credit cards are used by individuals or any entity to make money transactions on their behalf. Thus, the usage of them is to provide a convenient method of making payments to their holders.

Examples of personal credit cards

  • ICICI Instant Platinum Credit Card
  • HSBC Visa Platinum Card
  • Axis Bank Platinum Credit Card
  • HSBC Premier MasterCard Credit Card

Merits of personal credit cards

  • Making payments for the different transactions at one time, thereby purporting to be convenient.
  • Availing benefits and rewards offered by the credit card companies.
  • Moving the economy towards a cashless economy.

Demerits of personal credit cards

  • The interest charged for the delay in payments is high.
  • Missing the deadlines of payments can harm one’s credit score.

Student Credit Cards

A student credit card is issued to an applicant over the age of 18 years and it does not require one to generate a regular income. Student credit cards are valid for a period of 5 years. It facilitates the students studying in universities to make payments without the usage of using cash. Hence, student credit cards were introduced to address the needs of the students.

Methods of obtaining a Student credit card

Students can get access to a Student credit card in their names by 3 methods.

  • Against a fixed deposit that students have in their name. To grant student credit cards, different Banks have different minimum limits regarding the amounts of the fixed deposits required.
  • Students can obtain an Add-on card in their names through an application filed by a family member. The concerned family member must have complied with making timely payments before.
  • A student can also obtain it based on their strong savings account.

Examples of student credit card

  • SBI Student Plus Advantage Credit Card
  • ICICI Bank Student Travel Card

Merits of student credit cards card

  • No joining fees generally.
  • Low annual charges.
  • Low-interest rates.
  • Less documentation is required.

Demerits of student credit cards

  • Companies might lure students by giving them small benefits but charge high-interest rates later.
  • Not making timely payments results in a bad credit score.

Secured Credit Cards

Secured credit cards are granted based on the cash deposit of the credit cardholders in the respective bank. This acts as a medium for the bank to ensure that the transactions taking place on the card are risk-free. However, banks deduct the amount from the cash deposits of the credit card holders if they default on making timely payments. Since the Banks have an option to easily recover the default payments, the credit cards are called secured credit cards.

Some examples of secured credit cards

  • Axis Insta Easy Credit Card
  • ICICI Instant Platinum Credit Card
  • IndusInd Credit Card

Merits of secured credit cards

  • One can be granted a secured credit card even if his credit score is bad.
  • It offers one a fresh opportunity to strengthen the credit score as a result.
  • Some banks offer interest earnings on deposits.

Demerits of secured credit card status

  • One has to pay charges over and above the deposit money for the grant of credit cards.
  • Higher interest rates than in unsecured credit cards.

Unsecured credit cards

An unsecured credit card is the one where the credit card holder does not have to deposit money with the bank to avail of the credit card. The majority of the credit cards issued by the banks are unsecured credit cards because of their popularity.

Some examples of unsecured credit card

  • Citibank Cashback Credit Card
  • SBI Simply Click Credit Card
  • HSBC Premier MasterCard Credit Card

Merits of unsecured credit cards

  • Lower interest rates.
  • Offer more rewards and benefits.
  • No need to pay a security deposit.

Demerits of unsecured credit cards

  • One might indulge in excessive spending than required.
  • One may default on making timely payments than in the case of secured credit cards, due to no security deposit.

Rewards credit cards

Reward credit cards allow the holder to draw various kinds of rewards for making monetary transactions through the credit card. Therefore, such rewards and benefits attract the customers to make payments by the medium of credit cards rather than using cash.

Kinds of rewards credit cards

  • Travel Credit Cards
  • Dining Credit Cards
  • Shopping Credit Cards
  • Entertainment Credit Cards

Travel Credit Cards

Travel credit cards earn you rewards when you make payments during the period of your travel. Most noteworthy, they provide you with rewards such as concessions on trip expenses, free expenses, and minimal or charges for spending on travel abroad also.

Some examples of travel credit cards

  • Citibank Premier Miles Credit Card
  • Air India SBI Signature Credit Card
  • American Express Platinum Travel Credit Card
  • Axis Bank Miles & More World Credit card

Types of travel credit cards

  • Co-branded travel credit card
    • It allows you to avail rewards for using the credit card with a particular brand. Hence, you get offers like cashback and discounts.
  • General travel credit card
    • This can be used for making payments for any kind of travel expense.

Dining Credit Cards

Dining credit cards help you avail discounts at various restaurants and hotels. Furthermore, every other bank provides its own kind of rewards under the scheme of dining credit cards. Hence, it is a must for those who indulge in eating at restaurants frequently.

Examples of dining credit card

  • HDFC Bank Platinum Times Card
  • SBI Card PRIME
  • HDFC Solitaire Credit Card
  • ICICI Bank Rubyx Credit Card

Shopping Credit Cards

Shopping credit cards ensure that you get rewards and perks for making payments through credit cards. Banks compete with each other to provide the best deals to their customers. Hence, it is a must for frequent shoppers.

Examples of shopping credit cards

  • SBI SimplySAVE credit card
  • HDFC Bank MoneyBank credit card

Entertainment Credit Cards

Several banks provide rewards and perks for payment of entertainment activities through credit cards. Such entertainment activities include movies, games, shopping, and dining.

Examples of entertainment credit cards

  • ICICI Bank Coral American Express Credit Card
  • SBI Simply Click Credit Card

Gold credit cards

Gold credit cards are issued by the banks to high salaried individuals due to their ability to spend higher. Furthermore, for an applicant of a gold card, the requirement is to have a good credit score.

Examples of gold credit cards

  • SBI Gold and More credit card
  • HSBC Bank Gold credit card
  • Canara Global Gold credit card
  • LIC Gold credit card

Merits of gold credit card

  • The withdrawal limit is high.
  • The holders can avail of an add-on card facility since the card is viewed as a sign of trustworthiness.

Silver credit cards

This is used by entities that have an average amount of income generation. Their membership fee is quite low due to their purpose to serve even the lower and middle class. Also, no interest rate is charged for a period of the first 9 months approximately.

Examples of silver credit cards

  • Union Bank of India Silver Card
  • HDFC Silver credit card

Titanium Credit Cards

They provide privileges to the customers which include surcharge waivers, interest-free credit period, annual fee reversals, and wellness and beauty offer. The range of privileges the customers get under these credit cards are many.

Examples of Titanium Credit Cards

  • Tata Titanium Card
  • ICICI Bank Titanium Credit Card
  • Central Bank of India Titanium Credit Card
  • LIC Titanium Credit Card

Platinum Credit Cards

The benefits provided by these cards are very wide-ranging, which include gift vouchers, add-on card facilities, and fuel surcharge waivers, among many more. Therefore, platinum credit cards are one of the most common credit cards that are available to people.

Examples of Platinum Credit Cards

  • IndusInd Bank Platinum Select Credit Card
  • SBI Advantage Platinum Credit Card
  • Bank of Maharashtra SBI Platinum Credit Card
  • Tata Platinum Card
  • Oriental Bank of Commerce SBI Platinum Credit Card

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