Different Types Of Credit Cards Explained!

Everyday you see people use credit cards and find yourself searching about credit cards. What are credit cards and their types? How credit cards work? And so on. Today, we are focusing on the types of credit cards in this article. To make your work easy, we have listed 10 types of credit cards that you can avail of. Having a credit card in your wallet is undoubtedly a big step towards becoming financial liberal. Keep to reading to kick start your research:

1. Secured Credit Cards: One of the most common type of credit cards is secured credit cards. To avail of this type of credit card you need to maintain a fixed deposit with the bank for a specified time frame, after that you can apply for the credit card. If you fail to repay the credit card bills the card issuer deduct the outstanding amount from the fixed deposit. There is no joining and renewal fee or minimal fees with this type of credit card.
2. Unsecured Credit Cards: This is another type of credit card that is most common in the market. For this type, you do not have to maintain fixed deposit the bank rather you have to pay the joining and renewal fee.
3. Lifetime Free Credit Cards: This type of credit card is ideal for the first-time credit card users. These are completely free credit cards, you do not have to pay any fees. Moreover, the benefits of on the lifetime free credit cards are pretty much rewarding for the beginners.
4. Entry-Level Credit Cards: These credit cards come with minimal fees that can be easily affordable by the first time credit card users. The rewards and benefits on the entry-level credit cards are limited as compared to other credit cards.
5. Cashback Credit Cards: This type of credit card’s incentives revolve around the cashback rewards on the spend categories. You earn a percentage of your spending as a cashback which is directly credited to your account. The advantage of this type of credit card is that the cashback rewards never expire and you do not worry about to redemption process. Also Read - 6 Common Frequently Asked Questions About Cashback Credit Cards, Answered!
6. Rewards Credit Cards: Another type of credit card is rewards credit card whose incentives revolve around the rewards. You get a rewards program with your credit card that allows you to earn reward points on various spend categories. You can accumulate the reward points and redeem them in a given time frame for various categories.
7. Lifestyle Credit Cards: These credit cards are specifically designed to meet the shopping needs of the customers. Those who shop a lot should consider lifestyle credit cards as they will earn rewards on their spendings.
8. Entertainment Credit Cards: Everyone loves to watch movies and go out for dining. This type of credit card helps them to earn rewards on booking movie tickets or ordering food from partner restaurants. The Entertainment credit cards are ideal for students as they are the ones who make use of this category the most.
9. Fuel Credit Cards: If you are one of those people who travel a lot with their vehicle then they must consider Fuel credit cards as these credit cards will help them save a lot on fuel spendings. Moreover, you will also earn rewards in return on your fuel purchase and those can be again used to purchase fuel.
10. Travel Credit Cards: One of the highly reward credit cards is the travel credit cards as you get to enjoy each and every category with this credit card. You get to earn travel points on your travel spendings and on other spend categories as well. You can use those travel points to booking flights or hotels or for other categories.

Bottom Line:

To conclude, the above mentioned types are the major categories of credit cards available currently in the market. You can go for the type of credit card that fulfills your purpose the most. Moreover, you can compare credit cards online to find the right credit card for yourself. There are two most important things you need to keep in mind, first you need to keep your credit card dues clear all the time and second, you need to maintain a low credit utilisation in order to build a good standing account.