In Today’s, era credit cards are one of the essential financial products to have. It helps you in multiple ways like improving your credit score, tracking your expenses, and also saving some extra money through cash-backs and offers. But at the same time, it is very dangerous for your financial health if not used responsibly.
If you have ever used a credit card then you are very much aware of how convenient it is to use it. You can use your credit card to buy items you need or want, and then pay off the balance after some fixed duration. But is it really always a good idea to use your credit card? There are definitely things to consider before using your credit card.
One of the most important things to consider is the interest rate on your credit card and also the hidden charges. Credit cards often have high-interest rates, and it could mean that you are spending a lot of money to clear your principal balance if you don’t pay your bill on time. Of course, you don’t have any interest if you pay your bill on time.
There are many different types of credit cards available for different purposes. Some are designed for people who want to build their credit score from scratch, while others are designed for people who want to use credit cards for purchasing items that they can’t afford to pay off in one shot, and some credit cards are designed for people who like to travel, etc.
Here are some of the most popular types of credit cards:-
Credit Line Card:-
What is the most important thing to have in order to get a credit card? It’s a Good Credit Score. But what if you don’t have a credit score then Credit Line Cards are designed for you. That means you don’t need a credit score to have a credit line card. These types of cards are not like traditional credit cards.
You basically get a consumer loan from an NBFC(Non-Banking Finance Company) which you can use through a card. In India, there are multiple credit line cards available some of them are UNI cards, Slice Card, etc. We have a Comprehensive Slice Card Review you can check out if you want.
Secure Credit Cards:-
A Secure Credit Cards is another good option for those who don’t have a credit score. As the name suggests it provides security to whom? To the Credit Card issuer. To get a Secure Card Card to need to do an FD(Fixed Deposit) and then you will get a present of your FD amount as your credit Limit.
If you fail to pay your credit card bill on time then it will be deducted from your FD. It will be very beneficial if you pay your bills on time because you will simultaneously get interested in your FD and also it will help you to build your credit score.
Cashback Credit Cards:-
If you love shopping and spend most of your money on it then Cashback Credit Credit is a boon for you. It not only helps to get rewards and Cashbacks on every purchase but also generally has low-interest rates. There are tons of Cashback Credit cards available but you have to choose what suits your needs.
If you know in which category you are spending more, for example, you spend most of your money on traveling then you should a cashback credit card which provides you better deals on the travel category. Also, a very important thing about these cards is that most of them don’t have any annual fees.
Travel Credit Card:-
If you are looking for a good way to get closer to your travel dreams, a travel credit card may be what you need. These cards come with many great offers, such as bonus points for eligible travel purchases and even reduced interest rates for a set period of time. You can also use these cards to get discounted airline and hotel rates.
There are a lot of great travel credit cards on the market, so it can be hard to know which one to choose. It depends on the means of transport you travel the most if you more often travel by airlines then you should go with a card which provides you the rewards points on every purchase so that you can use them to buy your airline tickets.
Student Credit Card:-
As the name suggests Student Credit Cards are designed to solve students’ problems like students generally don’t have a credit score, therefore, there is no need to have a credit score to get a student credit card. Most of the Student Credit Card provide bonus rewards for Good grades and also provides cashback on every purchase.
One more thing that makes this card student-friendly is that they don’t have any annual fees. Students can also manage their finance efficiently by keeping track of their expenses using Student Credit Card.
Store Credit Card:-
If you do a lot of retail shopping or online shopping from different marketplaces then you should look on Store Credit Card. This Card provides special rewards and cashback on retail shopping. Every retailer has its own specific Credit Card from which you can avail exclusive offers from that retailer.
For example, Amazon has Amazon pay ICICI Credit Card while Flipkart has Flipkart Axis Bank Credit Card. This Card also provides some interesting offers on low-cost EMIs. Also, this Credit Card generally doesn’t have any annual fees.
There are many more types of Credit Cards available in the market and the number is increasing day by day. But the above-mentioned credit cards are the most common or we can say more relevant to us. If you are a beginner in the credit card world then Credit line cards and student credit cards are the best choices for you. I would like to highlight the point that Credit Cards are a very useful financial tool but under the condition, you use them responsibly otherwise they have the potential to destroy your financial health. Always keep a track of your expenses to avoid spending more than your income. Most of the Credit Cards comes with a hidden charge therefore all the terms and conditions before getting one. I hope to provide you with some valuable information on Credit Card and their types. Go get a credit card that suits you the best.