Finance

6 Types of Credit Cards Issued by Banks to Suit Your Needs

Going shopping with loads of cash in your wallet or purse is unsafe. Also, sometimes, you may not have ready funds in your account to make certain payments, like when purchasing an expensive home appliance or for a medical emergency. In such times, a credit card comes in handy to use anytime and anywhere for all kinds of transactions. 

It’s best to first compare different types of credit cards by checking their features and benefits. Then apply for the card that best suits your requirements. Here are the various types of credit cards issued by banks to cater to your needs. 

#1 – Low-Interest Credit Cards

Interest is charged when you are unable to pay the amount you have spent on the card within the due date. To minimize such charges, apply for a credit card offering the lowest interest rate.

Here are some other tips to manage interest charges:

  • Try keeping your credit card bill within your budget. Then you will be able to repay the amount due quite comfortably.
  • Be aware of the due date and pay a day in advance. With no dues left after the interest-free grace period ends, there won’t be any interest charges. 

#2 – Lifetime Free Credit Cards

Some issuers charge an annual maintenance fee to use the benefits of a credit card and keep the account open. But a lifetime free credit card does not have these charges.

#3 – Rewards Credit Cards

Apply for a rewards credit card that offers rewards for every rupee spent. These may come to you in the form of gift vouchers, offers at partner merchants, and more.

A good rewards credit card offers the following benefits:

  • You can earn up to 10X reward/credit points. 
  • The credit points don’t expire and there is no maximum limit. 
  • Various deals and discounts offered by different brands. 
  • No redemption fees on using the rewards.
  • More credit points on online transactions than offline ones. So, shop online from home with your card to get more rewards and to stay safe. 

#3 – Credit Cards with Multiple Offers

It is a good idea to apply for one credit card that offers deals with multiple merchants.

Such a card may offer time-to-time discounts on:

Lifestyle and shopping (like branded clothes or bags)

Travel (like plane tickets and hotel bookings)

Health and wellness (like hospital fees and online purchase of medicines)

Dining (like five-star restaurants)

Education and upskilling

Services (like legal services)

#4 – Zero Cash Advance Fee Credit Cards

A cash advance fee is charged by some issuers as a percentage of the cash withdrawn from ATMs using a credit card. If you apply for a credit card with no cash advance fees, you won’t incur these charges. That is, you can enjoy interest-free cash withdrawals on your card. 

#5 – Zero Over-the-Limit Fee Credit Cards

When transactions made using a credit card crosses the maximum limit, an over-the-limit fee is charged. You can easily avoid these charges by applying for a card with no over-the-limit fees.

Carefully read the terms and conditions of your chosen credit card to maximize the benefits of using it! 

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