Credit card users in India touched the mark of 52 million in 2019, and the market is anticipated to grow at a compounded annual growth rate of 25% between 2020 and 2025. The reason for this considerable demand is due to the ease of online application and the easy availability of user-friendly features at affordable charges.
The financial tool is a convenient way to access funds during emergencies. However, first-time applicants must know how to use credit cards efficiently and also be aware of the different types of cards available.
What are the kinds of starter credit cards available?
Various financial institutions offer credit cards that come with varied benefits and features. However, individuals must be well aware of their expense pattern and requirements, interest rates, etc. before they apply for a credit card online.
Here are some of the starter credit cards that you should be aware of:
Student credit card
Depending on the limited financial capacity and expenses of students, these cards are specially designed for them, offering limited credit availability. Financial institutions provide these payment tools for students who want to kickstart their business after completing graduation or are in their academic years.
Secured credit card
Individuals can avail of a credit card that is secured by collateral as well, such as a fixed deposit. Usually, the credit line matches the deposited amount, but some financial institutions offer half of the total amount as well to reduce the risk of default.
Travel credit card
Travel credit cards benefit every traveler in numerous ways and can be suitable for starters due to their attractive benefits. These cards come with exceptional reward points and discount offers when booking accommodation and flight tickets. You can further redeem the accumulated points, and earn travel miles or get discounts on shopping, among other benefits.
Fuel credit card
Purchasing fuel with these cards can provide individuals with accelerated reward points. Hence, one is expected to make a considerable amount of savings all year round while combating high fuel prices with a credit card. Therefore, these cards fit suitably for individuals requiring regular for a regular commute.
Shopping credit card
These types of cards take account of various shopping needs and provide rewards and discounts. If you shop at any partnered store offline or online, you can expect to enjoy lucrative discount offers with these kinds of credit cards. Plus, you will receive discount vouchers, cashback, etc. throughout the year.
Standard credit cards
These are also termed as ‘plain-vanilla’ credit cards as they do not offer any reward points. Besides, the usage of these cards is also easy to comprehend. For individuals who are looking for credit cards that are not complicated and want them only for regular spending, standard credit cards are the best option.
These cards offer a revolving balance up to a specific limit. After you use up the credit amount, the credit limit is restored post repayment of the dues.
Individuals are required to deposit money in these cards first to use them later. Plus, if the prepaid amount is used up, the expense limit does not get renewed unless you deposit more money to the card.
These payment tools do not entail any minimum payment or finance charges as the balance withdrawn is your own money.
Rewards credit card
These cards are one of the popular types, offering the chance to save with every transaction process. However, you are required to make purchases from particular partner outlets or stores. To be precise, a certain amount of total expenditure in the form of a reward point or cashback is transferred to your account. Note that the reward points so earned are redeemable.
You can further go for cards like the Bajaj Finserv RBL Bank SuperCard that offer reward points with every transaction you process and a welcome gift of up to 20,000 points as well with select card variants. Besides, these cards are also equipped with security features like ‘zero-fraud liability cover’ and ‘in-hand security’.
Besides, this credit card’s issuer also provides pre-approved offers to streamline the entire application process. These offers are available on a range of financial products, including personal loans and business loans. You can check your pre-approved offer by providing your name and contact information.
Before you proceed to how to apply for a credit card online, ensure to carry out a thorough research about the different cards available. You must also compare each to make the most out of your credit card.