Types of Credit Cards
04 Oct 2023
Table of Content
With so many choices available to consumers, it can be hard to make sense of the different credit card options available in the market. In this post, we'll break down the key features and benefits of each type of credit card, so you can make an informed decision about which card is right for your needs. We'll also provide helpful tips on choosing the best card for you and using it responsibly.
Different Types of Credit Cards
Rewards Credit Cards
Reward credit cards offer multiple incentives frequently offered on each card transaction. On all of your retail, internet, etc., card purchases, as a credit card holder, you may accrue reward points. In addition, you can receive additional points for renewal, birthdays, and other occasions. When customers spend a particular amount in a set amount of time, they can also accrue points. These reward points may be used to purchase the goods and services listed in the rewards catalogue, which also includes cashback incentives, air miles, travel deals, etc. Some cards enable users to make installment payments for their purchases.
Cashback Credit Cards
Rewards are generally distributed differently depending on different card categories but cashback credit cards make it simple for you to receive cashback or statement credits on your spending. Customers who use cashback credit cards receive 5% to 20% cashback on their purchases, depending on the spending. Payment of bills, the purchase of movie tickets, retail purchases, eating expenses, supermarket purchases, etc., all qualify for cashback. Fuel surcharge waivers, annual fee refunds, dining and shopping privileges, international acceptance, rewards programmes, balance transfers, etc. are mainly offered by any cashback card.
On Snapdeal BoB Credit Card, you can enjoy 5% Unlimited Cashback on your spends on Snapdeal. Know More at www.bobfinancial.com
Travel Credit Cards
Due to their endless travel perks, travel credit cards are hot cakes. These cards provide rewards for travel both domestically and internationally. To provide travel credit cards, the majority of banks have partnered with airlines or travel agencies. You may accrue air miles by using this card to make travel-related purchases. Additionally, some travel cards give their clients access to airport lounges. If you are a travel credit card holder, you may convert your reward points into air miles, which can be used to purchase tickets and select better seats on flights. You can also avail discounts on hotels, vacations, golf, restaurants, travel insurance, etc.
Reviewed as one of the best by industry experts, BoB ETERNA Credit Card offers Unlimited airport lounge access with accelerated rewards on your travel, dining, online & international spends. Check it out at www.bobfinancial.com.
Business Credit Cards
When using business credit cards, you may keep your personal and professional expenses separate and still receive rewards. It's interesting to note that corporate credit cards can also be secured credit cards, cashback credit cards, credit cards with general benefits, and credit cards for travel. Corporate credit cards come with benefits like discounted hotel stays and travel, business savings plans, expense management, insurance, waivers of fuel surcharges, access to airport lounges, rewards programmes, cash advances, add-on cards, bill payment options, and the ability to break up large purchases into manageable monthly payments. It must be noted that to be eligible for a business credit card, you must have a business or other source of revenue.
EMPOWER is the right card for your business aspirations. Know More at https://www.bobfinancial.com/.
Student Credit Cards
Student credit cards are the best option for young individuals with weak credit histories. Student credit cards are most likely to be accepted because the application standards are less onerous. Most student credit cards don't have an annual fee, and many of them give incentives for every dollar spent in addition to extra benefits for high grades.
Secured Credit Cards
While applying for a secured credit card, you must make a cash deposit in order to obtain a modest line of credit, typically for a comparable amount. Although putting up collateral may not seem ideal, secured credit cards are the quickest to be accepted, making them useful whether you need to start from scratch with your credit or want to rehabilitate it after a financial setback.
Store Credit Cards
Retail stores provide store credit cards so that customers can charge their purchases and pay them back over time. This card can be used at specific stores or a specific family of stores. In general, interest rates on store-branded credit cards are greater than those on general-purpose cards, and deferred interest is frequently charged more frequently. In spite of this, you might be able to benefit from some fantastic advantages and rewards programmes if you can pay off your shop credit card in a timely manner.
Lifetime Free Credit Cards
A lifetime free credit card is free for life and has no initiation or yearly fees. First-time card users who have recently started their professional path or have never taken any type of credit in the past are best suited for these free credit cards. These cards offer outstanding value despite the fact that the majority of them offer just minimal features and often low reward rates.
Co-Branded Credit Cards
Banks issue co-branded credit cards in each major category through collaboration with a retail brand, a travel or Ecom aggregator, Fintech or any other strategic partnership as per the internal due diligence process of the Bank. By leveraging the technical capabilities & expertise of the partner, A co-branded credit card combines the benefits of both the issuer & cobrand partner allowing clients to receive the benefits & perks from a single card. Co-branded credit cards offer special rewards, discounts and offers through the cobranded partnership like rewards on booking train tickets, shopping online and on special merchant categories along with special cashbacks & waivers depending on the cobranded partnership.
Fuel Credit Cards
Every time a fuel cardholder purchases fuel, their fuel credit card offers him/her several perks. Through reward programmes and fuel charge exclusions, this card saves clients money on refilling. Additionally, when purchasing fuel at particular gas stations around India, several banks give accelerated rewards points. A few more extra benefits are activation incentives, entertainment offers, rewards on grocery, utilities & departmental store purchases.
With HPCL BoB ENERGIE Credit Card, you can enjoy upto 128 litres of free fuel all year round, Unlock savings at www.bobfinancial.com
Credit Cards for Women
Credit cards for women provide a strong emphasis on cashback and shopping benefits and rewards. Women credit cardholders can receive additional reward points, a waiver of fuel surcharges, insurance, etc.
Contactless Credit Cards
The special payment technology equipped contactless credit cards enable cardholders to make purchases by merely touching their cards at point-of-sale terminals. These incredibly secure contactless transactions don't require users to input a PIN number in order to make payments, amount upto 5,000/-. These cards come with a number of advantages, including savings, cashback, freebies, rewards points, access to lounges, concierge services, insurance policies, and more.
Entertainment Credit Cards
Entertainment credit cards are popular for their incredible benefits such as discounts, cashback, or buy-one-get-one free deals on events, performances, and movies. Additionally, users may accrue rewards points on these purchases and exchange them for gift cards, cinema tickets, or vacation reservations.
Premium Credit Cards
Premium credit cards come with unique benefits like flexible spending limits, premium airport lounge access, concierge services, free insurance, rewards programmes, global assistance services, chartered yacht and flight services, surcharge waivers, retail, travel, and hotel accommodation vouchers, etc.
Signature Credit Cards
A Signature credit card from the majority of banks is available and offers the finest lifestyle benefits. The incentives that may be redeemed with these cards have additional alternatives. Depending on how much the cardholders spend, some of these cards waive the yearly charge.
How to Choose the Right Type of Credit Card?
Based on credit score:
Your credit score is an indicator of how likely you are to pay back any debts you may incur with a credit card in a timely manner. The higher your credit score, the more likely you will qualify for better offers such as low-interest rates or rewards programs. Knowing your current credit score will help you determine which type of card will be best for you.
Based on debt:
When evaluating different types of credit cards, look at how much debt you currently have and whether or not you have been able to pay off debts in full each month. If you have high levels of debt or have struggled to make payments in full, then a low-interest rate card might be better suited for you than one that offers rewards.
Based on other carrying charges:
It’s essential to know the other carrying charges and fees associated with different types of credit cards. Some cards carry annual fees, late fees, application fees, over-the-limit fees, and any other charges along with the card’s interest rate.
Various Credit Cards offered by Bank of Baroda
Bank of Baroda offers a wide range of credit cards and enables you to select the one that best suits your needs. You can visit www.bobfinancial.com and explore the plethora of credit cards curated for their valuable customers. The credit card range offered by Bank of Baroda includes:
- IRCTC BoB
- HPCL BoB ENERGIE
- INDIAN NAVY VARUNAH VARUNAH
- Indian Army Yoddha
- ASSAM RIFLES The Sentinel
- ICG RAKSHAMAH
- ICAI EXCLUSIVE
- ICSI DIAMOND
- CMA ONE
- CORPORATE CARD
- BOB NAINITAL BANK RENAISSANCE CARD
- BoB Vikram Card
- BoB BGGB PRAGATI CARD
- BoB BRKGB PRAGATI CARD
- BoB BUPB PRAGATI CARD
- FD BACKED –
Also Read: 5 Tips on How To Use Credit Card Wisely
To apply and know more about the BoB credit cards, visit our website www.bobfinancial.com. You can also. visit your nearest BOB branch.
Frequently Asked Questions (FAQs)
What is a ‘secured’ credit card?
A secured credit card is a card that is issued against your fixed deposits.
Do all credit cards come with joining and annual fees?
Yes - most of the credit card come with joining and annual fee but credit card issuers run special offers/drives with life time free pricing from time to time to encourage customers to apply for credit card. There are some lifetime free cards but these cards usually offer lower or no rewards/ special features compared to paid cards.
Can I own two Credit Cards?
Having many cards might have a significant negative influence on your financial situation. You must determine the optimal number of cards to carry in your wallet before carrying around many credit cards.
The contents of this article/infographic/picture/video are meant solely for information purposes and do not necessarily reflect the views of Bank of Baroda. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Bank of Baroda and/ or its Affiliates and its subsidiaries make no representation as to the accuracy; completeness or reliability of any information contained herein or otherwise provided and hereby disclaim any liability with regard to the same. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject Bank of Baroda or its affiliates to any licensing or registration requirements. Bank of Baroda shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.
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