What are the Different Types of Credit Cards?

By OneCard   |   December 18, 2023

    Sharing is caring 😉

 What are the Different Types of Credit Cards?

The market offers many types of credit cards that can confuse you as a user. With so many options available, you may wonder about which one you should go for. To make the right choice, start by figuring out your requirements. Think about all the scenarios and situations in which you will use your credit card. Once you have answers to these questions, you can make a wiser decision about which type of credit card you want to opt for.

Types of Credit Cards

1. Rewards Credit Card

Rewards credit cards offer you reward points on your purchases. The number of points you obtain is a fixed percentage of your purchase value. For example, with a particular credit card you may earn one reward point for every Rs. 100 spent. The percentage value may differ based on the category your purchase fits into. The points you obtain by purchasing fashion accessories may vary from the reward points you get by buying groceries. Once you accrue a certain number of reward points, you can check out the catalogue created by your card issuer and choose how you want to redeem your rewards.

OneCard’s rewards program is incredible. You get your reward points instantly, so no more waiting around. Plus, they reward you regardless of the category of your spending. Your top two spending categories also earn you 5X rewards every month. There is no rounding off transactions – you get even fractional points that can add up. Your points never expire, and there’s no cap on how many you can earn. Redeeming them is also a breeze in the app where you can use them against your recent transactions or even avail of a cashback that will be adjusted against your outstanding balance.

2. Travel Credit Card

During your credit card comparison, if travel is one of your top priorities, travel credit cards can be the best choice. These cards allow you to earn extra rewards for travel bookings. Depending on the type of travel credit card you choose, you can avail of an array of benefits such as complimentary airport lounge access, concierge services and discounts on dining and other leisure activities!

OneCard is an all-in-one credit card that also stands out for its incredibly low forex charges– a mere 1% which is among the lowest when compared with others in this category. This translates to significant savings when you travel in collaboration with its trusted partners, ensuring you get the best possible exchange rates for your international transactions. Also, you can avail of various offers and giftcards for hotels, buses, flights, etc.

3. Student Credit Card

If you consider the requirements of a student, you will find this credit card is ideal. Not only can they start building their credit score, but can also streamline their financial habits from a young age.

Since these credit cards are tailored specifically for students, the application process is relatively simple. Typically no annual fee is charged on these credit cards.

4. Secured Credit Card

Secured credit cards are an ideal option for people with a low credit history or those trying to build their credit scores from scratch. Issuers often quickly approve these cards as they are issued against a fixed deposit. The credit limit you obtain from these cards is typically 100% of the amount you deposit.

OneCard’s secured credit card starts at a minimum FD requirement of just Rs 5000. You’ll enjoy a credit limit equal to 100% of your deposit. It’s also an excellent opportunity to boost your credit score and establish a credit history.

With secured cards, your deposit earns attractive interest. It also offers the flexibility to convert purchases into EMIs.

5. Co-branded Credit Card

Card issuers partner with top brands across different industries to offer co-branded credit cards. These cards are ideal for people who frequently make purchases from certain brands. The rewards earned by making these brand purchases are incredibly lucrative for the loyal customers of particular brands. However, apart from making purchases from the co-brand, you can also use the card to make purchases from other brands.

6. Corporate Credit Card

Corporate credit cards are a great option for people who wish to maintain clear boundaries between personal and business expenses. These cards facilitate business activities and are primarily used for flight bookings, accommodation, and commute expenses related to business trips. Compared to conventional credit cards, the reward rates for corporate credit cards are high and are usually redeemable in the form of air miles or cashback.

7. Cashback Credit Card

Cashback credit cards appear on the list if you prefer a card that offers instant cashback instead of reward points that can be used later. These cards guarantee you cashback, which is calculated as a prefixed percentage of the purchase amount.

8. Shopping Credit Card

For passionate online shoppers, shopping credit cards are a must-have. They unlock fantastic discounts and deals on various online stores, making every purchase a delightful experience.

Also Read:​6 Reasons Why Credit Cards Are Preferred for Online Shopping

9. Premium Credit Card

These are cards that offer exceptional and top-notch benefits to their users. These benefits can be in the form of lucrative discounts on dining, spas, etc. However, these credit cards have a threshold income range and some of them are invite-only. Apart from income requirements, these credit cards come with elevated annual fees and demand higher minimum spending for any waiver of these fees.

Conclusion

There is no one-size-fits-all answer to which credit card is the best among the various credit card types available out there. Also, most people prefer using two to three credit cards rather than just one. These multiple credit cards are intended towards enjoying various benefits that come with different credit cards.

OneCard is a popular and versatile metal credit card that stands out for its incredible features. The credit card offers a powerful mobile app for full control, granting complete control over transaction limits, usage settings, and rewards redemption at your fingertips. Crafted from exquisite metal, it exudes exclusivity and stands out from other cards. With seamless digital onboarding that can be completed in under 5 minutes*, it’s convenient right from the start. The card’s 5X rewards on the top two spending categories, instant reward point crediting, and no expiration of points add incredible value to its users. Plus, OneCard EMI makes purchases more affordable payments, while the MyFamily feature allows you to share limits with your family with ease, making OneCard one of the best credit cards available in India.

*Onboarding time may vary depending on the customer profile and KYC requirements.


**Disclaimer: The information provided in this webpage does not, and is not intended to, constitute any kind of advice; instead, all the information available here is for general informational purposes only. FPL Technologies Private Limited and the author shall not be responsible for any direct/indirect/damages/loss incurred by the reader for making any decision based on the contents and information. Please consult your advisor before making any decision.