Last Updated on: 26th July 2024, 09:03 am
Credit Cards are designed to provide financial benefits in a way that allows you to have a convenient and flexible method of making purchases. It also enhances your banking experience while adding financial security. Thus, depending on your needs, spending habits and other eligibility factors, you can choose from various types of Credit Cards.
Let us learn more about the types to help you apply for a Credit Card that best suits your needs.
Different types of Credit Cards
| Types of Credit Cards | Description |
| Regular Credit Cards | These cards come with basic features and standard eligibility criteria. They are the best choice for individuals who are just starting their credit journey and are accustomed to general norms. |
| Secured Credit Cards | These cards are great for those with no credit history or a weak credit score and who wish to rebuild them. These cards are backed by investments made with the bank, such as Fixed Deposits, which serve as collateral. |
| Commercial Credit Cards | These cards are specially designed to suit the needs of business owners. They offer special benefits, which may include travel offers, expense management, integration with ERP, etc. These solutions are aimed at easing their daily business transactions. |
| Credit Card for Housewife | Non-salaried customers can still benefit from this and can easily apply for a Credit Card online. These can be availed as an add-on card linked to a creditworthy family member’s account or as a secured card. The benefits of the primary card extend to the add-on card. |
| Fuel Credit Cards | These are especially beneficial for customers who travel a lot and spend significant amounts on fuel. By using a fuel Credit Card, you can save money and enjoy rewards. |
| Travel Credit Cards | These are the best financial tools for those who frequently travel nationwide or internationally. They often come with exclusive offers on air tickets, lounge access, reward points, etc. |
Tips to build credit responsibly
- Ensure timely payment of Credit Card bills for a good credit score.
- Set up reminders or automatic payment mandates to avoid missing the due dates and paying late fees and interest.
- Maintain a low credit utilisation ratio by ensuring that the credit utilised is well below the total limit.
- Apply for a credit card with exclusive features only when necessary to avoid paying hefty maintenance fees and other charges associated with them.
- Check your credit report regularly, report any discrepancies, and fix errors immediately.
- Make manageable expenses using your Credit Cards to avoid accumulating debt.
- Ensure that you pay the full due amount every month.
- Do not miss any EMI instalment payments to avoid hampering your credit score.
Conclusion
Credit Cards can be your best financial aid when used responsibly and for appropriate expenses. To experience all the advantages, apply for a Credit Card that best suits your financial needs. By following the above easy tips and understanding the different types of Credit Cards, you can ensure an enhanced banking experience.
