Know the Different Types of Credit Cards Available in the Market

When it is about spending money, the higher the options, the better usually it is for you. Credit cards undoubtedly have made your lives simpler and easier. However, they hold various risks that may impact your financial status. To balance out the advantages and uses of the card offers and the risk involved in overspending, it is crucial for you to opt for a card that meets exactly what you require. 

To assist you to make an appropriate choice, financial institutions and banks provide the option of selecting your credit card based on your requirements so that you do not overspend and unnecessarily fall prey to any debt trap. When you take the decision of availing a credit card, you might have to select the prudent one among the various options available to you. 

Nowadays, there are even digital issuers like One card, Slice, Uni card, etc. in the market, through which you can avail a credit card with ease without the need of visiting physically any branch with just a few clicks on their respective apps. Also, before you zero on any of the credit cards of your choice, make sure to note that, whatever credit card you select, it is a must for you to make the credit card paymenton time and in full and never miss out on a single card payment. This is because missing out on credit card payments may make you incur late payment fees and hefty finance charges, which obviously you would not want to incur at any cost. Now, read on to check the different credit cards available in the market today. 

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Basic credit cards – Such cards are best for beginners. If you are a new credit card user, and just want to use the credit card to know how it functions, then you can opt for basic credit cards. With such cards, you will get a very small limit based on your monthly income, so you do not fall into any kind of debt trap as you use your card. You must remember that a basic card may not provide any additional advantages on the amount you spend. 

Digital or virtual credit card – A virtual credit card is just an add-on credit card, which is issued on the primary card. You can just use the virtual credit card online, which means that all the card details like the card number, CVV, expiry date, and others are visible online. 

Zero annual charge credit cards – Such credit cards are those that do not levy any annual charge. This credit card is best for you if you do not make much use of your card and require extremely few add-on benefits on your card. 

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Travel credit card – Such cards are best for travellers. Every time you swipe a travel card to make a transaction for your bookings for an airline or hotel, you tend to earn miles or reward points. You can use these reward points further to make your new travel bookings. 

Fuel credit card – Such cards are basically advantageous for you if you usually travel by car or bike. A fuel credit card allows you to get a waiver on fuel surcharge and save on your fuel expenditures by lowering your regular transportation expenses. You can even earn reward points and use the same to make considerable savings on your fuel expenditures throughout the year.  

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Shopping credit card – A shopping credit card allows you to shop at different stores or websites and offers you various cash back and discounts, etc. Using this credit card, you can avail different cashback deals, vouchers, etc., which you can use for your future buys. 

Reward credit card – Reward credit card provides you with reward points on your different spends. Such credit cards provide accelerated reward points on particular transactions. Bonus points hence may be utilized to get good discounts on your upcoming buys. You can even redeem such bonus points to lower your monthly card bills. 

Secured credit card – A secured credit card permits you to make the most out of your fixed deposit as this card is provided to you against your FD in case you are unable to get a regular credit card owing to a low credit score, low income or unserviceable location. By using this card, you can enhance your credit score and request for a regular credit card with a higher score. 

Low-interest card – A low-interest card is one that provides a lower rate than another credit card of a nearly similar category. 

Balance transfer card – A balance transfer card is one that permits you to easily transfer your outstanding credit card balance in your existing card to the balance transfer card at a low rate of interest for a particular time period. 

Cashback credit card – A cashback card is one that provides a specific cashback amount on your buys made on your card. However, there might be specific terms and conditions on the transaction type that is eligible for cashback on credit card. 

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Entertainment credit card – Entertainment card is one that offers deals and discounts just on the buys that are linked with entertainment like concert ticket booking, movie ticket booking, amusement park tickets and others.  

Lifestyle credit card – This card is best for you if you make transactions on lifestyle activities like a night club, premier screenings, fashion shows and others. 

Co-branded credit card – A co-branded card is provided to you as an outcome of tie-up between the issuing financial institution and a specific brand. You can get various special offers and discounts on buys made on a particular brand through the co-branded card. 

Business credit card – A business card is best for you if you are a businessperson. Such credit cards allow you in ensuring your personal and business transactions are separate. However, note that you must have a good credit score to be eligible for a business credit card. 

Prepaid credit card – This card is the one wherein you need to hold a prepaid balance on your card before you use the same. The amount for all the purchases or transactions that you make is deducted from the card’s balance. Also, note that there are zero additional fees or any criteria for the minimum payment on such credit card types. 

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