Types of Credit Cards in India: Which One Is Right for You?
Credit cards have become an essential financial tool in India. From offering reward points on shopping to fuel discounts and travel perks, there’s a credit card for almost every lifestyle. But with so many options, choosing the right card can get confusing. That’s where knowing the different types of credit cards in India comes in handy.
Each credit card type caters to specific spending habits—whether you're a frequent traveller, an online shopper, or someone looking to build credit. Understanding these options helps you pick a card that not only matches your lifestyle but also improves your credit score over time.
In this blog, we’ll break down the types of credit cards in India, explain their unique benefits, and help you find the one that works best for you.
Exploring the Key Credit Card Categories in India
India’s credit card market is growing rapidly, with banks offering diverse options tailored for specific needs. Let's explore the credit card categories you should know before applying for one.
1. Rewards Credit Cards – Best for Everyday Spenders
These cards let you earn reward points for every rupee spent, especially on groceries, dining, and fuel.
Popular Features:
- Accumulate points on daily purchases
- Redeem points for gifts, vouchers, or cashback
- Extra bonuses on milestone spends
2. Cashback Credit Cards – Simple and Instant Returns
Ideal for users who prefer straightforward savings. These cards offer a percentage of your spending back as cashback.
Features to Look For:
- Flat cashback on all or selected spends
- Auto credit to your card statement
- Exclusive cashback on online purchases
3. Travel Credit Cards – Perfect for Frequent Flyers
Designed for travellers, these cards offer benefits such as air miles, airport lounge access, hotel discounts, and travel insurance.
Travel Perks:
- Complimentary lounge access
- Free air miles or travel vouchers
- Discounts on flight and hotel bookings
4. Fuel Credit Cards – Save on Every Refill
Fuel cards help reduce fuel expenses by offering cashback or reward points on petrol/diesel purchases.
Highlights:
- Fuel surcharge waivers
- Reward points on fuel spend
- Offers with select fuel stations (like Indian Oil, BPCL, HPCL)
5. Shopping Credit Cards – Ideal for E-commerce Lovers
These cards come with offers on online shopping platforms like Amazon, Flipkart, and Myntra.
Shopping Benefits:
- Instant discounts and EMI options
- Partner offers on specific platforms
- Reward points or cashback on fashion, gadgets, and more
6. Secured Credit Cards – For Building or Rebuilding Credit
Backed by a fixed deposit, these cards are great for those with no credit history or poor credit.
Why Choose This:
- Easy approval with low risk
- Helps improve your credit score
- Reported to credit bureaus like any regular card
7. Premium Credit Cards – Luxury and Lifestyle Benefits
Targeted at high-income users, these cards offer top-tier services like concierge, golf access, and global privileges.
Premium Perks:
- Travel upgrades
- 24/7 personal concierge
- Access to elite events and experiences
Top Factors to Consider Before Choosing a Credit Card
Choosing from different credit card categories can be overwhelming. Here’s what to consider:
Your Spending Habits
- If you travel frequently, consider choosing a travel credit card. If you shop online often, a rewards or shopping card may be more suitable for you.
Fees and Charges
- Always check the annual fees, late payment charges, and foreign transaction fees associated with the card.
Offers and Rewards
- Ensure that the card's benefits align with your lifestyle. Also, check whether the rewards are easy to redeem.
Credit Impact
- Make sure your usage contributes positively to your credit score and doesn't lead to overspending.
Conclusion
Now that you understand the main types of credit cards in India, you can pick one that fits your lifestyle, maximises rewards, and supports your financial goals. Whether it’s a rewards card, fuel card, or a secured card, the right choice can also help you improve your credit score, especially when used responsibly with bill payment add or credit payment add features.
Check your credit score now with GoodScore and find the perfect card for your needs, tailored to your credit profile. Sign up today for expert tips to boost your credit journey.
FAQs
1. What are the different types of credit cards and their benefits?
A: There are several types of credit cards, like rewards, cashback, fuel, travel, shopping, secured, and premium cards. Each type offers benefits tailored to specific spending habits, like cashback on purchases or lounge access for travellers.
2. What are the best rewards credit cards in India?
A: Some of the best rewards credit cards in India include HDFC Millennia, SBI SimplyCLICK, and Amazon Pay ICICI. These offer reward points, cashback, and special partner discounts.
3. How do travel credit cards compare to fuel credit cards?
A: Travel cards offer perks like free lounge access and air miles, while fuel cards give cashback and waivers on petrol/diesel purchases. Choose based on whether you travel more or commute daily.
4. Which credit card should I choose in India?
A: Choose based on your spending habits, income, and lifestyle. If you're new to credit, start with a secured card. Frequent travellers should opt for a travel card, while online shoppers can benefit from shopping credit cards.
5. Are there types of credit cards based on usage?
A: Yes. Credit cards are often categorised by usage, such as travel, fuel, shopping, or rewards. Each type comes with specific features designed to optimise savings and rewards for that usage.
