Most people in India prefer payment options like Cash on Delivery (COD), debit cards, or digital wallets when shopping online/offline. Debit cards and digital wallets may give you rewards with every transaction you make. However, they don’t go close to the rewards which credit cards provide with. Credit cards have:
Types of Credit Cards: Tips to Get the Most Out of Your Expenses
- Reward points redeemable in more than one way.
- Cashback that gives you a discount on your monthly credit card bill.
- Discounts that make your purchases cheaper.
Credit cards can be the ideal financial instrument to save the most out of daily expenses. The only trick is to pick the right card. Various types of credit cards available in the market cater to particular expenses.
Going for the card that gives you rewards against your frequent spends will make such transactions lucrative.
Here are some of the credit cards you can go for:
A fuel credit card
Fuel credit cards are exceptional if your purchase fuel routinely. You can earn high reward points on purchasing fuel using these types of credit cards. These points can be redeemed to buy fuel for free.
You also receive fuel surcharge waivers with the cards. The waiver ranges from the full amount to a specific percentage.
Generally, fuel credit cards are co-branded. Financial institutions provide these cards in association with fuel companies. You have to buy fuel from the partnered pump stations to enjoy these benefits.
A travel credit card
If you are a frequent flyer, you should opt for a travel card. Travel credit cards are also co-branded. They offer travel miles when you buy flight tickets from a specific airline. These miles are redeemable for discounts on future air ticket purchases.
Other benefits provided by these types of credit cards include:
- Travel insurance – Lost baggage, baggage delay, lost the passport, flight delay air accidental death, etc.
- Excess baggage waiver
- Concierge services
Some standalone credit cards give you the option to convert your accumulated reward points into travel miles. These cards may also provide concierge services and complimentary accesses to airport lounges.
For example, you get up to 8 such accesses with the Bajaj Finserv RBL Bank SuperCard. This credit card also provides with an interest-free emergency personal loan for up to 90 days. You can withdraw cash from ATM with this card without the need to pay interest for up to 50 days.
An entertainment credit card
Such credit cards are tailor-made to help you make the most of ticket purchases for movies or events. Entertainment credit cards give you several rewards against movie ticket purchases.
Some of these rewards include:
- Free movie tickets.
- High reward points on movie tickets.
- Discounts on movie tickets.
- One movie ticket free when you buy one.
Some of these types of credit cards also come with movie vouchers when you spend a specific amount using the card in a year.
A retail credit card
Retail cards are apt for those with above-average expenditures in shopping. Financial institutions liaise with leading online and offline shopping portals when offering these credit cards.
Retail credit cards are co-branded as well. You earn high reward points, discounts, and cash back when purchasing products from that merchant. These cards provide shopping vouchers when you spend a particular amount in a year.
Some non-co-branded credit cards also provide high reward points on specific purchases like grocery, apparel, etc.
A dining credit card
Dining credit cards give you rewards on transactions at select restaurants, cafés, hotels, and others. Generally, the financial institutions offering these benefits have partner diners throughout India or even overseas. You can accumulate high reward points, discounts, and cash back when using this card at partner restaurants.
The Bajaj Finserv RBL Bank SuperCard provides up to 20 reward points for every Rs. 100 that you spend on dining.
Bajaj Finserv also brings pre-approved offers which make it simple to avail these credit cards and save you time. You can get pre-approved offers on home loans, business loans, personal loans, and a list of other financial products as well. Provide only your name and phone number to check your pre-approved offer.
Keep in mind the following points before you apply for a credit card:
Have a good credit score
A minimum credit score of 750 is necessary if you are applying for any of the credit cards mentioned above.
Have all the necessary documents
Credit card companies require your KYC documents (Aadhaar, PAN, Voter ID, Passport, Driving License, etc.) and address proof (latest utility bill, house rent agreement, etc.) to sanction a credit card. You may also have to provide other documents.
Ensure to fulfil all other eligibility criteria before you apply for any of these types of credit cards. Also, do make sure to compare the rates of interest and charges beforehand.