types of credit cards

Understanding the Various Types of Credit Cards


Issuers offer various types of credit card options that you can choose from and access instant credit at any time. All these cards come with their own unique features and benefits that cater to your specific financial requirements. 

For this reason, it’s important that you choose the right type of card to make payments conveniently and get maximum benefits. Here are some of the top options you can choose from.

Different Types of Credit Cards 

Here’s a brief overview of various credit card options that you can opt for:

Rewards Credit Cards

This is one of the most common types of credit cards, and its main benefit is that it offers accelerated reward points, which you can accumulate and redeem when you want. You can redeem these points for statement credits, gift cards, or merchandise. 

You can also use the points to get discounts or pay for shopping, travel bookings, and everyday expenses. All in all, this card can help you save more in the long run. Remember, the redemption process and benefits will vary depending on the issuer.

Travel Credit Cards

These credit cards are best for frequent travelers, as they provide benefits that make your travel affordable, smooth, and convenient. These benefits include:  

  • Travel insurance
  • Global acceptance
  • Lower currency conversion rates
  • Airport lounge access
  • Concierge services and more

Issuers also partner with top travel websites to give exclusive partner benefits on flight ticket booking, hotel booking, and more. 

Cashback Credit Cards

Cashback or statement credits are when you get a specified percentage of the transaction amount back into your card. The amount of cashback varies depending on the issuer and the card. It also depends on your spending category and transaction amount. So, this would be an ideal option if you want savings on every payment. 

Business Credit Cards

This credit card helps you manage your professional expenses, planned or unplanned. You can use it to cover several expenses, such as travel costs, credit card bill payments, advance payments, and more, all while earning reward points. 

Fuel Credit Cards

As the name suggests, these cards are specifically designed to help you save more on fuel purchases. Some cards may give you discounts and cashback on purchases from the partner fuel stations, while others have universal acceptance and benefits. These cards also give you a fuel surcharge waiver, helping you save more. 

Secured Credit Cards

You can opt for a collateral-backed credit card if you don’t meet the required credit score to get an unsecured, or regular, credit card. This is one of the types of credit cards that does not require income proof or a credit score check, as the issuer has collateral to recover the dues in case of non-payment. These cards also come with rewards and other benefits, depending on the issuer.

Co-Branded Credit Cards

Often, credit card issuers partner with other brands to provide a co-branded credit card. With these cards, you can get exclusive deals when using them at partner stores or websites. For example, if an issuer partners with Amazon, you can use such co-branded credit cards to access discounts, cashback, early access, and more. 

Lifestyle Credit Cards

If you are looking for a card that gives you benefits on your day-to-day expenditures, then this type of credit card is ideal. These offer you benefits on travel, shopping, dining, fashion, entertainment, etc. 

Student Credit Cards

Since the majority of issuers require income proof to avail of a credit card, this option caters to students without any source of income. This is a beginner-friendly option which helps the cardholder learn credit management and build credit history. This is one of the types of credit card with relatively simple requirements and lower interest rates. 

Prepaid Credit Cards 

A prepaid credit card works differently from a regular credit card, as you need to load money into it before you can withdraw. People with poor credit histories can opt for this card; generally, a credit score is not a mandatory criterion to apply. 

Premium Credit Cards

If you wish to enjoy luxury or exclusive services with your credit card, consider this option. Some of the premium services available on such cards include:

  • Golf club memberships 
  • Airport lounge access 
  • Concierge service
  • Credit card and travel insurance
  • Hotel accommodation
  • Personal relationship manager
  • Spa services 

How to Choose Between Them

Here are a few things to consider when choosing from these types of credit cards. 

  • Check the issuer’s eligibility criteria
  • Check your credit score and make improvements if needed  
  • Compare for the best rewards, cashback and discount offers  
  • Evaluate your needs and choose a card that aligns with them
  • Check the fees and charges to get a cost-effective option
  • Opt for a card with a mobile application for easy management 

Knowing these tips allows you to easily assess your requirements and make well-informed decisions when selecting a credit card. If you are looking for a card that gives you maximum rewards with no annual or joining fees, consider the One Credit Card

This new-gen option is ideal for savings, easy to use, tech-savvy, and rewarding. With it, you earn 5X reward points on your top two category spends, helping you maximise your savings. The rewards also come with no expiration, and there are no charges for redemption.

This credit card also comes with a powerful app, the One Credit Card app, which aids in easy and convenient management of the card. You can easily track spending, check due dates, make credit card bill payments, find offers, convert your spends into EMIs, and more. All in all, it gives you the control to spend your money more confidently. Apply online to get started.

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