The rising popularity of credit cards has majorly impacted the lending and credit space. This has encouraged issuers to come up with new cards in the market with varied kinds of benefits and features to meet your changing needs and requirements. The provision of different benefits and features allows you to categorize them into different types. Here are some of the popular types of credit cards present in the market today.
- Basic credit card
This card is a preferred choice if you are a new user and want to start using credit cards. Such cards come with a low credit card limit, which gradually increases with an increase in your credit score and income. The benefits of such cards are minimal as they are only designed to help you understand how the card works and meet your basic credit requirements. IDFC FIRST Bank offers Millennia credit cards for young customers who wish to apply for their first credit card. It comes with no annual membership charges and low finance charges ranging between 0.75 to 3.5% per month making it suitable for you to begin your credit card journey.
- Secured credit card
A secured credit card is issued against your fixed deposit with a credit limit determined as per your deposit. Usually, issuers allow you to use up to 90 per cent of your deposit amount as a credit limit. A secured credit card works the same way as a regular credit card, with the only difference being that it is secured in nature. All your transactions and payment behaviour on a secured credit card are communicated to the credit bureaus by your issuer. Using the details received by the issuers, bureaus determine your credit score. If you hold an FD with IDFC FIRST Bank, the WOW! Credit card is among the best secured credit cards in India that offer up to 100% credit limit of your FD. It requires no documentation and comes with no annual charges whatsoever. Along with 6.25% on your FD, you earn 4X rewards on your credit card expenses. As a traveller, you are entitled to zero markup fee on forex.
- Zero annual fee credit card
This is a lifetime free credit card that does not incur any annual charge upon usage. This is a level higher than the basic credit card and comes with an attractive reward program and benefits. Examples of some lifetime-free credit cards are IDFC FIRST Millennia, IDFC FIRST Classic, IDFC FIRST Select, IDFC FIRST Wealth, and IDFC FIRST WOW!
- Rewards credit card
A reward credit card offers substantial rewards for every rupee that you spend. Card issuers form enticing reward point programs that encourage you to use your card for shopping, travel, dining, etc. In return, you can rack up the reward points to redeem them later for air miles, cash back, merchandise, gift vouchers, etc. If you are seeking a reward credit card for bad credit card, the IDFC FIRST Bank Classic credit card is the most suitable option. You earn up to 10X rewards on incremental spends of more than ₹20k a month and up to 6X rewards on online and offline purchases.
- Cashback credit card
A cashback credit card provides you with a specific percentage of the purchase amount in the form of cashback whenever you make a card transaction. Note that while many issuers allow you to avail cashback on all transactions, few may allow you to claim cashback only on the specific type of credit card transaction. For instance, a credit card issuer may just allow you to claim cashback on fuel transactions.
- Travel credit card
If you are a frequent traveller, you may benefit by opting for a travel credit card as this type of card may offer benefits like travel insurance, suitable currency conversion rates, complimentary domestic and international lounge access, higher air miles on airline transactions, etc. Some popular travel credit cards are IDFC FIRST Bank Wealth and Private cards. Along with access to premium international and domestic airport lounges, you get a low markup fee of just 1.5% to meet your travel expenses. The Private credit card comes with zero markup fee on forex transactions and interest-free ATM withdrawals for up to 48 hours during international trips.
A credit card is a financial instrument that can make your life easy. By using it, you can buy products or services on credit and return the full borrowed amount without incurring any credit card interest rate by the due date.
Based on your needs and demands, issuers now provide different types of credit cards as mentioned above. Thus, before applying for any card through the online CC (credit card) platform of an issuer, ensure to conduct your research and opt for the card that matches your preference, and needs, and provides you with the highest benefits at minimal annual/joining charges. Once you have applied for the credit card, you can easily check the credit card status online on the platform where you placed the application, or you can directly call the issuer for an update.