Types of Credit Cards in India

If you have never taken a loan and do not have a credit card yet, then you are considered to be new to credit by card providers. This is because you do not have a credit history. These cards usually have easier eligibility criteria and do not require a credit score. Hence, they are suitable for people who are new to credit. You can start your credit journey with a low annual fee credit card that offers regular benefits. Here are some of the credit cards that are best suited for people who are new to credit:

Credit Card	Annual Fee	Key Benefit
Axis Ace Credit Card	Rs. 499	5% cashback on bill payment, DTH and mobile recharge*
SBI SimplyCLICK Credit Card	Rs. 499	10X reward points on online spends with partners
Flipkart Axis Bank Credit Card	Rs. 500	5% cashback on Flipkart and Myntra
HSBC Cashback Credit Card	Rs. 750	1.5% cashback on all online spends
HDFC MoneyBack Credit Card	Rs. 500	2 reward points on every Rs. 150 spent and 2X (4) reward points on every Rs. 150 spent online

*Terms and conditions applicable.

People, who are earning Rs. 25,000 or less per month, can also get a credit card. Such people can apply for credit cards that are specially designed for low-income earners. These credit cards usually charge a low annual fee. Despite charging a low fee and having easier eligibility terms, some of these cards offer good benefits on selected categories. Below mentioned are some of the top credit cards for low-income earners:

Credit Card	Annual Fee	Key Benefit
HDFC MoneyBack Credit Card	Rs. 500	2 reward points on every Rs. 150 spent and 2X (4) reward points on every Rs. 150 spent online
SBI SimplyCLICK Credit Card	Rs. 499	10X reward points on online spends with partners
BPCL SBI Card	Rs. 499	13X reward points on fuel purchases at BPCL petrol pumps
HDFC Easy EMI Credit Card	Rs. 500	5% cashback on Amazon, Flipkart, flight & hotel bookings on shopping via PayZapp and SmartBuy
HDFC Times Titanium Credit Card	Rs. 500	2 reward points for every Rs. 150 spent

If you frequently travel internationally or domestically or both, then you should consider applying for a travel credit card. These cards provide travel benefits, such as lounge access, spa services at airports, low foreign transaction fees, discounts on rental services, hotel bookings and much more. The table below mentions some of the top travel credit cards available in India:

Credit Card	Annual Fee	Key Benefit
Citi PremierMiles Credit Card	Communicated at the time sourcing	10 miles for every Rs. 100 spent on airline transactions*
Air India SBI Signature Credit Card	Rs. 4,999	Up to 30 reward points for every Rs. 100 spent on Air India tickets booked through airindia.com or Air India mobile app
Axis Bank Vistara Signature Credit Card	Rs. 3,000	4 Club Vistara (CV) points per Rs. 200 spent across all categories
SBI Card ELITE	Rs. 4,999	5X reward points on dining, departmental stores and grocery spends
HDFC Regalia Credit Card	Rs. 2,500	4 reward points per Rs. 150 spent on all retail purchases

*Terms and conditions applicable.

Just like frequent travellers, shopping credit cards provide benefits to frequent shoppers. These benefits can be availed in the form of accelerated reward points, cashback, discounts, etc. The offers provided can range from apparel shopping to grocery shopping and much more. Below mentioned are the top shopping credit cards available in the market:

Credit Card	Annual Fee	Key Benefit
Axis Ace Credit Card	Rs. 499	5% cashback on bill payment, DTH and mobile recharge*
Flipkart Axis Bank Credit Card	Rs. 500	5% cashback on Flipkart and Myntra
Amazon Pay ICICI Credit Card	Nil	5% cashback on Amazon spends for Amazon Prime members
HDFC Millennia Credit Card	Rs. 1,000	5% cashback on Amazon, Flipkart, flight & hotel bookings on shopping via PayZapp and SmartBuy
SBI SimplyCLICK Credit Card	Rs. 499	10X reward points on online spends with partners

*Terms and conditions applicable.

Airline credit cards are usually co-branded with major airline brands like Vistara, Air India or Etihad Airways. Here customers can get accelerated reward points, lounge access, and much more when they use the credit card to avail services of the co-branded airline. These credit cards are best suited for those who are loyal to a specific airline brand. Some of the top airline credit cards are mentioned in the table below:

Credit Card	Annual Fee	Key Benefit
Air India SBI Signature Credit Card	Rs. 4,999	Up to 30 reward points for every Rs. 100 spent on Air India tickets booked through airindia.com or Air India mobile app
RBL Bank World Safari Credit Card	Rs. 3,000	2 travel points on every Rs. 100 spent on all the transactions along with 5 travel points for every Rs. 100 spent on travel expenditure
Citi PremierMiles Credit Card	Communicated at the time sourcing	10 miles for every Rs. 100 spent on airline transactions*
Axis Bank Vistara Signature Credit Card	Rs. 3,000	4 Club Vistara (CV) points per Rs. 200 spent across all categories
HDFC Diners ClubMiles Credit Card	Rs. 1,000	4 reward points on every Rs. 150 spent

*Terms and conditions applicable.

Also Check: Credit cards with access to airport lounges

Generally, most of the credit cards offer reward points on online/ offline purchases. But there are cards that are specially designed to offer high rewards on all expenses along with accelerated points on certain expenditures. The reward points are usually a fraction of the amount spent. However, over time, users can accumulate the reward points and redeem them against items in the rewards catalogue, air miles, vouchers and so on. Look for some of the top rewards credit cards available in the market at the table below:

Credit Card	Annual Fee	Key Benefit
SBI Card Prime	Rs. 2,999	10 reward points per Rs. 100 spent on dining, groceries, movies and departmental stores
Citibank Rewards Credit Card	Rs. 1,000	10X rewards on every Rs. 125 spent at apparel & department store
Standard Chartered Platinum Rewards Credit Card	Rs. 250	5X reward points on every Rs. 150 spent on fine-dining and fuel
HDFC Regalia Credit Card	Rs. 2,500	4 reward points per Rs. 150 spent on all retail purchases
HDFC Diners Club Privilege Credit Card	Rs. 2,500	4 reward points on every Rs. 150 spent on retail and 2X reward points on weekend dining

Through cashback credit cards, you can avail cashback on every purchase. The cashback provided can be used as a statement credit or for shopping. Some cards offer direct cashback while others allow you to convert reward points into statement credit. Here are some of the top cashback credit cards available in India:

Credit Card	Annual Fee	Key Benefit
Axis Bank ACE Credit Card	Rs. 499	5% cashback on bill payment, DTH and mobile recharge*
Flipkart Axis Bank Credit Card	Rs. 500	5% cashback on Flipkart and Myntra
HSBC Cashback Credit Card	Rs. 750	1.5% cashback on all online spends
HDFC Millennia Credit Card	Rs. 1,000	5% cashback on Amazon, Flipkart, flight & hotel bookings on shopping via PayZapp and SmartBuy
Citibank Cashback Credit Card	Communicated at the time of sourcing	5% cashback on utility and telephone bill payments and movie ticket purchases

*Terms and conditions applicable.

Fuel credit cards let their users save on fuel expenses in the form of discounts, rewards or cashback. Some of these cards are also co-branded with major fuel brands to provide free fuel or accelerated rewards to the loyal customers of the brand. In some cases, you can later redeem the earned rewards against your future transactions. Below mentioned are the top credit cards that offer benefits on fuel transactions:

Credit Card	Annual Fee	Key Benefit
BPCL SBI Card Octane	Rs. 1,499	25 reward points on every Rs. 100 spent at BPCL fuel, lubricants & Bharat Gas website and application
IndianOil Citibank® Platinum Credit Card	Communicated at the time of sourcing	4 turbo points on every Rs. 150 spent
IndianOil Axis Bank Credit Card	Rs. 500	100% cashback (up to Rs. 250) on all fuel transactions within the first 30 days of card issuance
HDFC Bharat Cashback Credit Card	Rs. 500	5% monthly cashback on fuel expenses
BPCL SBI Card	Rs. 499	13X reward points on fuel purchases at BPCL petrol pumps

Entertainment credit cards are designed to help you save more on your entertainment expenses, such as movies, events, etc. Some of these cards may be co-branded with entertainment brands like PVR and BookMyShow, while others may offer benefits across all entertainment expenses. You can look for the top entertainment credit cards in the table below:

Credit Card	Annual Fee	Key Benefit
Axis Bank My Zone Credit Card	Rs. 500	Buy 1 get 1 free movie tickets
Axis Bank Neo Credit Card	Rs. 250	10% discount on booking movie tickets via BookMyShow
Citi Cashback Credit Card	Communicated at the time of sourcing	5% cashback on movie tickets
SBI ELITE Card	Rs. 4,999	Free movie tickets worth Rs. 6,000 per year
SBI Card Prime	Rs. 2,999	10 reward points per Rs. 100 spent on movie ticket bookings

Secured credit cards are issued against fixed deposits. These cards let you earn interest on the fixed deposit while you use them as collateral for your credit limit. These credit cards are perfect for those who have a bad credit score or who are new to credit. The top secured credit cards available in India are listed in the table below:

Credit Card	Annual Fee	Key Benefit
Paisabazaar StepUp Credit Card	Nil	100% credit limit of your fixed deposit amount and 1 reward point for every Rs. 100 spent
SBI Card Unnati	Rs. 499	1 reward point on every Rs. 100 spent
Axis Insta Easy Credit Card	Nil	6 reward points on every Rs. 200 spent domestically
Kotak 811 #DreamDifferent Credit Card	Nil	2 reward points per Rs. 100 on online spends
ICICI Bank Instant Platinum Credit Card	Nil	2 reward points per Rs. 100 spent on all purchases other than fuel

There are numerous credit cards available in the market for every user. However, while choosing the right credit card, you must consider the below-mentioned things in order to maximize your benefits:

Identify your needs

Credit cards come under multiple categories, such as travel, shopping, dining and more. The best credit card for you would be the one that fulfills your needs. In order to find the best credit card, it is important to identify your needs and spending pattern. For example, if you frequently shop online, a credit card that offers discounts or cashback on online shopping would be a perfect choice for you.

Check for eligibility before applying

You might get attracted to rich rewards and perks offered by premium credit cards. However, there might be a possibility that you won’t be able to qualify for such credit cards. These premium credit cards are offered to people who have a good credit score and longer credit history. You should always start your credit journey with a basic credit card that comes with relaxed eligibility and is offered to people with low or no credit history. To do so, you have to research different credit cards available in the market that best match your needs.

Look for fees and charges before applying

Besides eligibility, you must look for interest rates, fees and charges associated with the credit card before you apply. There can be a variety of charges that are applicable to your card. The things you need to keep a check on include finance charges, joining fees, annual/ renewal fees, transfer fees, foreign transaction charges, etc. Considering these charges can help you find better options than others as per your repayment capacity.

Remember, there is a wide variety of credit cards available in India. The total number of credit cards available for customers is above 350. In this scenario, it is up to you to make the right decision. Know your needs, do your research and then choose a card.