It is very strenuous to determine which credit card is best and which one will bear you more fruits from the humongous list of credit cards. To keep you stress-free and to help you in making an informed decision we have categorized credit cards into 5 categories that you should know. After analyzing your financial health and spending habit you can choose to go for one type of credit card that suits your profile. To get the best credit card for yourself you can compare credit cards online to check which one is more rewarding for you according to your requirements.
Here are the different types of credit cards and their features:
Rewards Credit Card: While looking for credit cards you can go for the reward points-based credit cards that let you earn reward points on every spending. There are credit cards that provide you accelerated reward points on the selected categories that mean you earn more on your spending. The accumulated reward points are redeemable during a stipulated time period. You can vouch for HDFC Bank Infinia Credit Card, ICICI Bank Sapphiro Credit Card, Axis Bank Magnus Credit Card, etc.
Features of rewards credit cards:
As welcome benefits on some credit cards, you get bonus reward points.
On achieving the milestone spending you get bonus reward points.
You earn reward points on spendings.
Reward points are easily redeemable towards gift vouchers, shopping, flight and hotel bookings, etc.
Most of the Rewards credit cards come at an affordable price like SBI SimplyCLICK Credit Card, American Express SmartEarn Credit Card, IDFC First Select Credit Card, etc.
Cashback Credit Card: Cashback credit cards are one of the affordable credit cards that you can vouch for. These credit cards provide you incentives in the form of cashback. You can earn 1% - 6% cashback on these credit cards. If you are looking for a cashback then you must check Amazon Pay ICICI Bank credit card, Flipkart Axis Bank credit card, HSBC Cashback credit card, etc.
Features of cashback credit cards:
Come at an affordable price.
Cashbacks are directly credited to your account.
They do not expire.
You can get bonus cash back on some credit cards on payment of the joining fee.
Travel Credit Card: Travel credit cards are highly rewarding credit cards as you get to enjoy not only travel benefits but other shopping, movie, and dining benefits as well. You get to earn travel points/reward points/air miles on these credit cards. You can consider the RBL World Safari credit card, InterMiles HDFC Bank Diners Club credit card, Axis Bank Miles & More credit cards, etc. under the travel credit cards.
Features of Travel credit cards:
You earn miles/rewards/travel points on spendings, hotel, and flight bookings.
You get bonus miles or complimentary flight tickets as a welcome benefit.
You can easily upgrade your class with airline credit cards.
You get travel & vacation packages, hotel stays, and many more other travel benefits.
Apart from travel perks, you get insurance covers, shopping, movie, and dining benefits as well.
Fuel Credit Card: Fuel credit cards are another form of credit card that you will find in the market. On these credit cards, you will earn reward points on the fuel transactions. You save a lot on fuel either in the form of reward points or in the form of cashback. You can check Standard Chartered Super Value Titanium credit card, BPCL SBI credit card, ICICI Bank HPCL Super Saver credit card, etc. for a fuel credit card.
Features of fuel credit cards:
You save more on fuel as you earn reward points/cashback on fuel transactions along with a fuel surcharge waiver.
You can redeem your accumulated reward points for purchasing fuel.
They are affordable also.
You get bonus reward points/cashback on the payment of the joining fee.
No Annual Fee Credit Card: These credit cards are the most affordable as the renewal/annual fee on these credit cards is exempted and you can enjoy the features and offers on them freely. The application for these credit cards is easily approved. Some of the best Lifetime free credit cards that you can consider are HSBC Visa Platinum Credit Card, Amazon Pay ICICI Bank credit card, SBI Unnati Credit Card, ICICI Bank Mine Credit Card, etc.
Features of No annual fee credit cards:
They are highly affordable as there is no joining and renewal fee.
You can enjoy the welcome benefits and travel benefits on some of these types of credit cards like HSBC Visa Platinum Credit Card, Flipkart Axis Bank Credit Card, IDFC First Select Credit Card, etc.
You save more on this credit card as the burden of the renewal fee is not there and you can keep using the credit card and keep enjoying the benefits of them.
They are lifetime free credit cards.
Bottom Line:
With a parting thought, we can say that every type of credit card is good depending on the credit cardholder’s spending habits and how wisely he/she uses it. Each credit card can reap the benefits if it is used cautiously and sensibly. The first-time applicants can vouch for the lifetime free credit card or the secured credit card, to begin with, the credit card journey. With credit cards, you can build strong financial health and a good credit score by keeping your credit utilization ratio low and clearing the credit card dues on time.