Credit cards appear to be a remedy for Indians from several economic backgrounds while serving their financial requirements in the most effective way. Transactions made with such cards fared a total of Rs.6 lakh crore in FY18-19. A further detailed study of the statistics suggests that Indians prefer to opt for credit cards for various needs to skim the maximum benefits of specific offers.
Therefore, a well-informed knowledge of the several types of credit cards indeed enables an individual to choose the most appropriate option. They can use specific credit cards and earn reward points for associated purchases. As a result, they can put their plastic money in the most particular application and benefit from further financial perks and offers.
Which are the most prominent types of credit cards?
Financial institutions take into account the various purchase patterns that credit card users follow. Consequently, they issue cards keeping in mind such trends and target specific groups that have a distinct credit card use habit.
The types of credit cards present are as follows –
- Travel credit card –
This particular category of credit card caters the most to individuals who engage in traveling frequently. This category also includes regular commute and air travel, both domestic and international. With this credit card, users can receive consistent cashback and attractive discounts on cab rides per month.
Additionally, they also have the option to save significantly on fuel surcharges and experience other credit card benefits for every traveler.
Along with that, individuals also receive exciting welcome gifts, reward points, and complimentary access to airport lounges. They can also earn substantial discounts on their airfare charges for frequent air travel.
Therefore, travel credit cards are the most financially beneficial option for individuals who want to save on their daily travel costs.
- Shopping credit card –
Shopping credit card associates itself with a range of financial perks for individuals. More often than not, shoppers use secure credit cards to make online payments for purchases from e-commerce platforms.
As a result, designated credit cards to provide an array of discounts and cash back offers on select partner brands. Individuals purchasing from these brands can use their reward points to leverage a significant discount.
Reputed credit card issuers provide exclusive discounts on purchases related to groceries, home appliances, electronic gadgets, and much more. These cards also offer the option to convert high-worth transactions into affordable EMIs. Consequently, individuals can significantly reduce their immediate financial burden that they face at the end of the billing period.
- Business credit card –
This is one of those types of credit cards that enable an entrepreneur to finance short-term cash requirements. Small and medium scale businesses often struggle with cash and liquidity crunches that actively affect their daily operations. Therefore, individuals can apply for a business credit card and leverage that to receive emergency cash for their organisational activities.
With this category of credit card, they can finance their working capital and travel expenses related to their businesses. These include hotel accommodations, flight tickets, and commute expenses as well.
Therefore, the most prominent types of credit cards in India enable individuals to make focused purchases and earn attractive reward points. They can accumulate high points with premium credit cards such as Bajaj Finserv RBL Bank SuperCard and redeem the same for future purchases.
These types of credit cards thus target individuals from distinct spending groups and patterns and provide financial perks to make their purchases worthwhile. Individuals should use their credit cards wisely to save even more on their travel, business, and shopping expenses.