A credit card has become a vital part of our lives, with its ease of use and convenient rewarding offers. The cashback, deals, and discounts which comes along with this are truly unbeaten.
However, these cards can also trap you if not used properly. Therefore, it is very important for you to understand your needs and choose the right card that fits well in your wallet and does not burden you with some monthly or annual charges.
Here are 10 types of credit cards you can add to a wallet for daily use:
Student Credit Cards
If you are a student and do not have this card. There is a strong possibility that you are missing out on the benefits of having a student credit card.
Unlike other credit cards, these cards are issued even if you have a limited credit history. It gives you cash-back, whenever any purchase is made with the card. Most cards come with no annual fee and offer a nice bonus for good grades.
Prepaid Credit Cards
A prepaid credit card is just like your other credit cards, but comes with a preloaded fund that can be used to make further purchases. Since, no bank loads the amount, it does not attract any interest charges also.
Some of these cards also give you an ATM withdrawal option in case of an emergency.
Cashback Credit Cards
Out of all cards, a cash-back credit card gives you a percentage of the transaction that you made while spending money on food, travel or subscription to a plan.
However, these rewards vary from card to card. There are two ways for this:
- Cards that offer the same amount as you purchased, though it is
very rare, and
- Cards that offer small cash-back across various product lines.
Some cash-back credit cards have a nominal annual fee, while some don’t have.
Premium Credit Cards
Premium credit cards are high priced cards that focus on the comfort of the cardholders. If you travel frequently by plane, go to golf courses, want discounted meals, etc., this is the right kind of card to carry in your pocket.
These cards are costlier than your normal credit cards but stand out in terms of luxury.
It has a lot more beneficial things for you like unlimited airport lounge access, free meals in 05-star hotels and much more. As it sounds, the interest is high along with its annual fee.
Store Credit Cards
This store credit card is very useful for you, if you are someone who buys a lot of goods from a single retail store (could be Walmart, Amazon or Reliance Mart).
These cards are offered to you by retail companies so that you can spend more and pay off those amounts over time. And, store credit cards have higher interest rates and can only be used within a specific family of stores.
Reward Points Credit Cards
The rewards points credit card is one of the easy-to-use cards that gives you points for spending a minimum amount in one go. For example, some card companies give 01-rupee for every 100-rupee spent.
These points or amount can be used to buy groceries or for any bill payments.
Co-Branded Credit Cards
As the name suggests, a co-branded credit card is a hybrid card that has the benefits of both a store credit card and reward points credit card.
This card allows you to access all the exclusive deals and discounts that store and rewards point credit cards do. Offers like travel insurance, cash-back, and emergency assistance.
Travel Credit Cards
A travel credit card offers a wide range of perks that you can avail while traveling or being in a holiday. This card is specially designed for frequent travellers.
Like every other credit card, it also has a reward or loyalty program that can be claimed in the form of airport lounge access or discount on hotels and flight tickets.
However, there is zero liability of banks if your card is lost. But the card comes with no annual or maintenance fees.
Business Credit Cards
If you are running a business and are finding it difficult to separate your personal and business expenses, this business credit card can be a life saver for you. It has an expense tracking feature that lets you track all your bills.
Some business credit cards will give you a uniform rewards rate for all purchases, while other cards reward common business expenses such as travel or Internet service at higher rates.
Plus, this credit card offers you a very low interest rate and a nominal annual fee.
Secured Credit Cards
A secured credit card functio
ns more like a traditional credit card.
The primary difference is that with this card, you pay a cash
deposit in advance to guarantee your line of credit.
These cards have high interest rates and annual fees. Although, if
your credit score is between 500-600 then, it can be carried.
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