A credit card comes in the form of plastic card which lets you access your credit limit through an ATM machine. A credit limit is assigned to you by your bank as per your spending capacity. A credit limit is like a loan. However instead of giving you the whole loan in one go, banks allows you to use your limit as per your need.
Types of Credit Card
There are enormous number of credit cards in the markets provided by number of credit card providers. The most essential thing before buying a credit card is analyzing your needs as there are many types of credit cards in the market ranging from basic everyday spends cards to premium cards which comes with lot of perks and rewards. Let’s discuss few credit card types.
Rewards Credit Cards
There cards are self introductory by their names. Rewards credit cards comes with number of rewards which are given to a customer on his each purchase. Rewards are also categorized further. Usually there are three types of rewards credit card:-
- Cashback rewards
- Travel rewards
- Points
Cashback Rewards Card
Cashback Rewards credit card simply offers cashbacks on the purchases made by a customer using a cashback credit card. However, every card have some exclusions on which the cashback offers do not apply.
Travel Rewards Card
Travel rewards credit card usually offer rewards such as discounts, travel vouchers etc on doing travel bookings.
Reward points credit cards
Reward points are those credit cards which add some points in your accounts and offer rewards inreturn of particular amount of points. However every reward points credit card have certain exclusions.
Fuel Credit cards
Fuel credit cards are those one which offers rewards and discounts during fuel purchase. Cashback is one of the most common reward offered by fuel credit cards. Fuel credit cards also offer fuel surcharge waiver and accelerated reward points on fuel purchase which can be exchanged for both rewards and fuel purchases.
Lifestyle Credit Card
Lifestyle credit cards are one of the most popular credit cards in India. The name is self explanatory, these cards work to enhance the customer’s lifestyle choices of food, dining, shopping, and so on. Lifestyle usually provides number of offers that cater the lifestyle needs of the customer.
Secured Credit Cards
People who don’t have a credit history or people who have low credit score go for secured cards. Secured cards require a particular security amount need to be deposited. The credit limit on a secured credit card is typically equal to the amount of the deposit made on the card.
