Wednesday, June 23, 2021

TYPES OF CREDIT CARDS

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Credit cards designed by credit card companies do not hold all cards with the same characteristics. Each comes with distinct characteristics and advantages. They are created concerning the needs and spending patterns of individuals. For example, an entertainment credit card would fit better than the other categories for a person who spends more on entertainment events like movies, clubs, etc. In general, we can categorize credit cards into the following categories based on various spending patterns.

  • Shopping Credit Card: Targeted at clients who spend more money on purchases such as clothing, jewelry, food, electronics, etc. Unique credit cards designed for online shopping that offer special rebates on some e-commerce portals are also available. For housewives who have to handle all of their grocery and other retail shopping, this form of credit card is ideally suited.
  • Travel Credit Card: Individuals who regularly travel can need to book airline tickets, book a hotel, and need money for foreign spending. Travel credit cards encourage cardholders to do all that and later pay for them. The benefits of getting a travel credit card are free lounge access at airports and a large number of reward points.
  • Lifestyle Credit Card: Typically, lifestyle credit cards are luxury credit cards that are ideally suited to elite residents who often dine out, make higher transactions, etc. The higher amount of discounts, higher loyalty points, and free concierge services come with these credit cards. As the rewards are larger, when compared to other credit cards, the annual fee is also higher.
  • Reward Points Credit Card: Reward points are one of the enticing features provided by credit cards and have become an even greater incentive for so many consumers to use a credit card. Most credit card companies have launched credit cards that help you receive more loyalty points that can be exchanged against different gift products to recognize consumer requirements.
  • Cashback Credit Card: Just like credit card reward points, cash back cards allow you to save on all your purchases. For different expenses, such as eating, ticket booking, hotel booking, etc., you will get a certain amount of cashback. Also, the cashback points can also be used to reduce the payment of your monthly credit card bill.
  • Fuel Credit Card: It is inevitable to travel from home to the workplace, and you can definitely pay out an amount for fuel expenses. Given its significance, most credit card companies have developed credit cards for fuel that help you save money on fuel costs. On such cards, you can get up to a 3 percent fuel surcharge waiver. Besides, on this card, there are also other benefits available.
  • Women’s Credit Card: There is a growing number of working women in the world. Realizing the value of providing women with financial independence, several credit card companies have come up with exclusive women’s credit cards. This credit card can be used by women who enjoy shopping to receive deals and discounts.
  • Business Credit Card: For business activities, each business organization would have to invest a large amount of money. Paying all business transactions through a business credit card, such as equipment, inventory, etc., will help to gain tremendous reward points that will minimize expenditures in turn. Besides, a business credit card helps keep track of all the bills.
  • Secured Credit Card: In some situations, a person must have a good income and credit score to be eligible for a credit card. For someone who doesn’t have both, if you have a fixed deposit, you can get quick approval on a secured credit card. Up to 80 percent of the FD sum is issued as a credit limit on this form of the credit card.
  • Student Credit Cards: There are specially crafted credit cards for students pursuing their higher studies. The eligibility requirements for this card are defined based on the income of the father or guardian. This card can be used by students to buy computers, gadgets, stationery products, etc.
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