Your Guide to Different Credit Cards and How They Benefit

You can turn to credit cards whenever you fall short of cash and require an instant loan. Credit cards offer numerous advantages over generic loans, as they do not need lengthy processes. Depending on the type of card you possess and the credit limit set on it, these cards help you fulfil your necessities and dreams.

Wondering how credit cards work? Confused about the different types of credit cards available? Debating whether or not to jump on the credit card bandwagon?

The financial year 2013-2021 reports showed a steady rise in the number of credit card users in India. This indicates that more people are relying on credit cards for their purchases. It further proves that the best credit card in India are more beneficial than additional stress or financial complexities.  

If you feel you are good to go with your debit cards, think again. The option to pay later is an opportunity that brings in a more significant benefit and is possible only with a credit card. Furthermore, credit card transactions are slated to be more valuable than other transactions, as per RBI reports.

Thinking about which credit card to choose? Choose amongst the following options to know how credit cards work and start enjoying the benefits of credit cards:

Basic credit card

If it is your first time, play it safe with this and enjoy the benefits of possessing a credit card. Use your basic credit card freely but wisely based on your income and the credit limit set on your card. As no specific annual fee or benefits are offered, this is the most hassle-free card, to begin with.

Premium credit card

Choose this if you know your way around a healthy credit score and wish to avail exclusive offers and privileges. In exchange for a higher annual fee, you get numerous privileges. Not only do you get premium access to lounges and clubs, but you also get covered by insurance and buyer’s protection.

Secured credit card

If you have been defaulting on loan repayments or failed to clear your credit card bills, this is where you strike. However, you will have to deposit collateral amounting to the same amount as the credit limit. This will ensure that you will repay in frequent instalments. It will also help you turn your poor credit score into a healthy one. Eventually, your borrower will return your deposited amount once cleared. This also works for you if you are someone with no credit history. It will allow you to build a profile and develop a credit history for future benefits.

Low-Interest credit card

If you are looking for low-interest rates against credit cards, then this is where your search ends. Choose a low-interest credit card to enjoy similar benefits as the basic credit card but at a lower interest rate. You get to repay in smaller instalments, allowing you a more relaxed payback opportunity.

Read: Business Structure And Tax Implications: A Brief Guide

Balance Transfer credit card

When you have outstanding dues on your credit card (at a higher interest rate), you can select this option to transfer it onto a new credit at a lower interest rate as low as 0% (for a fixed period). However, you will still have to ensure guaranteed monthly payments.

Credit card for students

Credit cards for students have a very low credit limit, so the chances of incurring debt are almost nil as the spending amount is limited. They allow college students to avail of credit to fulfil their immediate short-term needs and take their first step towards financial responsibilities. Low-interest rates and no income eligibility are required for these credit card for students.

Credit card for business owners

If you are an entrepreneur with dreams, this is for you. This also works if you are looking for expansion opportunities while not draining your savings. Whether a sole proprietor or in a partnership contract, you can easily avail yourself of a credit card. Get set to enjoy the benefits and allowances designed especially for you.

Travel credit cards

These cards offer specific benefits like access, privileges, insurance, and conversion rates to travellers worldwide. It also allows discounts, offers, and hassle-free transactions globally, making travel worry-free and financially secure.

Read: How A Business Bank Account Can Grow Your Small Business

Entertainment credit cards

Are you a movie buff or enjoy spending time doing leisure activities, then this is for you? Not only do you get to earn rewards and discounts, but you also get access to numerous entertainment zones and free tickets.

Cashback credit cards

These online credit card allow you to earn a percentage back on the amount spent making purchases for certain transactions. The cashback ensures you also earn while you pay.

Rewards credit cards

Availing of a reward credit card will ensure you earn rewards for every transaction you make. You get to spend and earn points that can be redeemed at selected outlets and purchases.

Invest in a credit card today to enjoy how credit cards work.