Credit cards have become the primary payment option for many Indians these days, and market research shows similar results. The reason for this extraordinary growth is clear: the benefits that this payment car brings. We offer many perks to our customers, such as points and cashback. In this topic, let’s take a look at the pros and cons of different types of credit cards in India.
In addition, the ability to apply for a credit card online has made it easier to access this payment card. But a very common question here is which card to choose. Okay, let’s figure it out.
Pros and Cons of Different Types of Credit Cards in India
Here we detail the pros and cons of different types of credit cards in India that you need to know to find the ideal credit card for you.
regular credit card
First on this list is a standard credit card. It’s nothing special because it follows credit card rules of thumb and makes transactions easy.
Strong Points: Well, you have a standard credit limit that you can increase based on your usage, and you get all the usual credit card benefits.
Cons: No special offers or reward points, miss out on special perks.
Affiliated credit card
Co-branded credit cards are developed and implemented by payment card providers with specific brands. For example, when certain credit card providers partner with e-commerce platforms. It will then introduce credit cards that offer additional perks for shopping from its e-commerce platform.
Strong Points: Eye-catching discounts and deals on shopping from co-brands, whatever it is. You will have the chance to make the most profitable deals by making the best deals.
Cons: Enrollment fees and annual fees may be higher than regular credit cards. In addition, the terms of use also have their own characteristics, so it is necessary to understand them well.
business credit card
As the name suggests, these credit cards are usually reserved for businesses and are also known as corporate credit cards. You cannot access this credit card as an individual, but you can access it as an employee of the company.
Strong Points: Great benefits and high credit limits for all your spending.
Cons: Benefits are available to companies and not necessarily individuals. In addition, it is limited to corporations and cannot be accessed.
student credit card
These are specific subtypes of credit cards. Tailored to student needs, these credit cards are a great way for students to learn financial management. Students gain financial freedom as they are usually available on their parent’s primary credit card.
Strong Points: A great option for students to cover expenses and learn financial management.
Cons: Credit limits are nominal and there are some perks to discuss. Also, students themselves cannot access these cards. Their parents must be guarantors.
travel credit card
Tailored to the traveler’s needs, these credit cards are the perfect choice for those looking to explore the world. These credit cards come with a variety of travel-related benefits, such as discounts on travel and lodging reservations, special restaurant discounts, and more.
Strong Points: Get access to airport lounges plus special hotel and rail or flight discounts. You can also get free ticket upgrades and earn airline miles when you purchase tickets with these credit cards.
Cons: Benefits are limited to a specific area, and otherwise not much of a noticeable benefit. Also, these credit card surcharges are higher than usual.
Besides these, there are other credit card options on the market today, including:
- fuel credit card
- cashback credit card
- entertainment credit card
- lifestyle credit card
These are some of the notable sub-types of credit cards available in India.So you credit cardCompare credit cards before deciding.
Things to know when comparing credit cards
That said, there are a few caveats to keep in mind when equating credit cards. these are –
- Eligibility and Required Documents
- Total Credit Limit and Increase Provisions
- Repayment Terms and EMI Facility
- Additional fees such as annual membership fees and admission fees
- Reward Points Accumulation and Redemption Conditions
final thoughts
For additional knowledge, read our tips on how to manage credit card payments. It can be confusing given the number of different credit cards available in the Indian market. However, the right way to clear up this confusion is to understand the pros and cons of different types of credit cards in India and make a decision.