The internet is flooded with credit card info as the financial market is brimming with more consumer credit card options. One of the reasons is that it is a pathway to easy yet responsible credit, convenience and unique perks.
Although every credit card has a similar function, they have various unique features and offers. It is important to understand these differences if you are looking to get a credit card. This will help ensure that you get the best card with the best benefits.
Let’s dive into the credit card info about various credit cards, according to their features and benefits, so that you can make an informed decision and apply for the right card.
1. Unsecured Cards
Also known as regular or standard credit cards, these are among the most common ones with a limit based on your income. You don’t need any collateral, and the issuer will check your creditworthiness while assessing the application. Depending on the issuer and the card, you can get great perks for your purchases.
Salient features:
- Low annual fee
- Low credit limit
- Little rewards
- Basic terms and conditions
2. Secured Credit Cards
These cards are backed by an asset, generally FD, which acts as collateral for the credit card. They are usually given easily to those with low or no credit history, as they are beginner-friendly. You can build your credit score while using the card and apply for standard credit cards later. You also continue to earn interest on the FD on renewal after maturity.
Salient features:
- Issued against an FD
- Asset-linked credit limit
- Low joining and annual fees
3. Rewards Credit Card
These credit cards offer reward points, which you can use for cashback, discounts, airline miles, and more. This type of credit card is great for people who can regularly use the card, as it can lead to maximum benefits. But you must pay off their outstanding balance in full to enjoy continued access to the perks.
Salient features:
- Reward points on eligible expenses
- Additional points for expenditure above the threshold
- Annual fee waiver if you spend above the milestone
- Accumulation of rewards and redemption on time for the benefits
4. Cashback Credit Card
These credit cards offer some percentage of the expenses made as cashback. This applies to eligible transactions only. The cashback is offered on specific categories and it is essential to check the same before applying for the card.
Salient features:
- Guarantee of money back on certain eligible categories
- Welcome benefits and additional rewards
- Waiver of fuel surcharge at select petrol pumps
5. Travel Credit Card
These are exclusively designed for frequent travelers, as they provide perks like airline miles, discounts, and travel insurance. They also give priority boarding and free access to lounges at domestic and international airports.
Salient features:
- Travel insurance
- Free lounge access every year
- Low Forex charges
- Free or low-cost airline tickets occasionally
6. Premium Credit Card
These cards are true to their name. The eligibility criteria are strict, and the card offers top-notch benefits. They are typically offered to higher-income individuals as they come with high fees and exclusive benefits, such as club memberships.
Salient features:
- Personal relationship
- Concierge service
- Exclusive membership
- A high annual fee
7. Co-Branded Credit Card
These cards are issued by financial institutions in partnership with various brands and companies. These issuers tie up with companies and offer exclusive rewards for their products and services.
Salient features:
- Accepted globally
- Exclusive rewards and offers
- Great for frequent shoppers
8. Business Credit Card
Financial institutions issue these credit cards to firms that want to provide simple business-related expenditures for their employees. They are usually used by the employees for booking flight tickets, hotel accommodations, and travel costs, including daily commutes.
Salient features:
- Loyalty points for frequent expenditure using the card
- Rewards on eligible categories
- Great offers on these select spending categories
- company is held responsible for the card rather than the cardholder
How To Select Your Best Credit Card
With a multitude of options available, it is important to choose the right card to get the best benefits. Here are a few tips to help you get a card that suits your needs:
- Analyse your financial needs and spending pattern
- Check your eligibility and read the fine print for terms and conditions
- Compare rewards and offers on the card
- Evaluate the security features and customer service
- Assess the flexibility in the redemption of rewards
Now that you know the different types of credit cards available on the market, you can make an informed choice about what you need and can afford. Focus on paying your dues on time to avoid high interest charges and continue to enjoy great rewards and offers.
If you want a card that’s beginner-friendly and offers great rewards, opt for the One Credit Card. The card offers 5X rewards on your top 2 spending categories and great rewards on your expenses. This is an instant credit card that has a powerful app, which makes handling finances easy.
The One Credit Card App helps you track all your transactions and leverage the best offers near you with just a few clicks. It helps you manage your card by allowing you to change limits and other settings with just a few taps. You can also easily convert big-ticket expenses into EMIs through the app and make affordable payments. Apply now with minimal paperwork and a quick digital application.