A credit card is an addition to your wallet that has the power to transform the way you transact. Given the fact that it adds to your purchasing power, a credit card allows you to leverage your finances by giving you access to exclusive deals and offers, thereby adding even more value to your purchase. However, to enjoy this benefit you need to ensure that you’re using the right type of credit card.
Due to the fact that there are so many types of consumers, issuers are constantly tweaking their credit card offer to suit your needs. As of 2019, there are multiple types of credit card for you to choose from, and they all serve a different purpose.
To help you narrow down that list to a handful of options, here are 4 types to consider before you apply for a credit card.
Travel credit card
As the name suggests, this credit card is designed to cater to avid travellers. If you have to travel frequently every year owing to your personal or business needs then this type of credit card is just right for you. Issuers offer special benefits like air miles, free access to airport lounges, discounts on first-class amenities, exclusive travel insurance at no extra cost, and much more on credit cards specially designed for travellers like you.
Additionally, travel credit cards also give you access to exclusive deals on hotel accommodation and bookings. In most cases, booking with travel partners listed with your issuer will be very helpful as you can avail special travel and stay discounts coupled with other travel benefits.
Secured credit card
Generally, a credit card is an unsecured financial tool. This means that you’re not required to pledge any collateral in order to get your application sanctioned. Instead, the issuer enquires into your credit history to gauge your risk profile and approves your application in this way. However, a low credit score will earn you a rejection on your application. But, you can get a secured credit card by pledging a security like a fixed deposit, as collateral. The credit limit in this case will be more or less equal to the value of the FD. Thus, in case you want to build your credit score, then this credit card assured with a security is a good way to start your credit journey.
Lifestyle credit card
This credit card offers benefits based on your income and lifestyle choices. The benefits are spread across categories and are diverse covering your dining, entertainment, travel and shopping needs with ease. Most issuers will offer you cashback, discounts and allow you a chance to earn reward points basis your purchases made on the credit card.
A huge benefit of using a lifestyle credit card is that it adds immense value to your everyday purchases as well. Most importantly, a lifestyle card can be customised based on your credit behaviour. So, see how and where you tend to spend, and then based on partner offers listed with issuers you can choose a lifestyle credit card that is meant for you.
Balance Transfer credit card
This is a type of credit card designed to help you consolidate your existing debt. With the help of a balance transfer credit card, you can transfer your existing credit card debts to the new card by virtue of a small fee. Generally, this is done to get rid of the costly interest payments incurred or to avail of a lesser, more suitable interest rate. Additionally, balance transfer credit cards also give you a grace period of 6 to 21 months within which you can comfortably pay off your debt interest-free.
These are among the more popular types of credit cards and they cover a broad spectrum of spends. Other variants like fuel credit cards, business credit cards, student credit cards, and cashback cards also exist, and you can review the perks before you sign up or apply. Besides just considering the type of credit card, also account for the additional features of a credit card before you apply. For example, the Bajaj Finserv RBL Bank SuperCard grants you up to 20,000 reward points as a welcome gift. Once you start using the SuperCard, you can earn reward points for every transaction or purchase you make. These can be redeemed for special discounts or gifts and can help you save you up to Rs.55,000 annually.
The credit card also allows you to enjoy amazing discounts, earn cashback, and make use of exclusive credit card offers. These range across varied categories like apparel, entertainment, food and even travel purchases, all while letting you earn reward points for your spends. Furthermore, you can avail an emergency loan on your credit limit to fund emergencies and make interest-free cash withdrawals from an ATM. An added perk is that you can convert any spend over Rs.3000 into EMIs. To get access to all these features and more, check your pre-approved offer online today and apply for a card of your choice as per your preference in a jiffy!