Know the different categories of credit cards and how they work

by in Tips

People who wish to get a credit card have a variety of options at their disposal today. To know which credit card to select, you must be aware of all the categories of credit cards. In this article, we shall discuss the different types of credit cards based on their varied features, repayment options that you can choose from, and the rewards offered by the bank.  

  1. Regular credit cards 

One of the most popular categories of credit cards offered by banks is regular credit cards. Two of IDFC FIRST Bank’s popular credit cards – FIRST Classic Credit Card and FIRST Millennia Credit Card, for example, are regular credit cards. These cards offer travel-related rewards such as complimentary railway lounge access, personal accident coverage, fuel surcharge waiver, and free roadside assistance. Certain banks like IDFC FIRST Bank also offer interest-free cash withdrawals through these credit cards and cashback offers. Reward points can be earned on shopping online using these credit cards which can be redeemed at any time. 

2. Semi-Premium credit cards

The semi-premium category of credit cards offered by certain reputed banks could be classified as some of the best credit cards in India, IDFC FIRST Bank’s FIRST Select Credit Card being one. Certain semi-premium credit cards also fall under the lifetime free credit card category, since they charge no annual fee from the customer. The customer receives a higher credit limit through a Premium credit card. Moreover, other benefits and rewards such as airport and railway lounge access, discounts on dining at restaurants and health and wellness outlets, comprehensive travel insurance coverage, and personal accident insurance are provided. In addition to these benefits, semi-premium credit cards also attract a lower forex markup fee on shopping internationally. 

3. Premium credit cards 

Premium credit cards are offered to a select number of customers who have availed a variety of services offered by the bank and have met the eligibility criteria decided by the bank. The FIRST Wealth Credit Card offered by IDFC FIRST Bank is an example of this type of credit card. Premium credit cards offer privileges such as golf round lessons every month, discounts on shopping, dining, health checkups, and fuel surcharge waivers. 

4. Co-branded credit cards 

A co-branded credit card is a type of credit card that caters specifically to a particular need of the customer. An example of such a type of credit card is the IDFC FIRST Power, which is a fuel card that offers higher rewards at fuel stations in addition to fuel-related benefits. 

5. Lifetime free credit cards

The final category of credit cards that is undoubtedly the most popular today is the lifetime free credit card. Banks and financial institutions offer credit cards without charging any annual fees to their customers. These are known as lifetime free credit cards. These credit cards are popular since the bank does away with a fee that is generally charged to the customer for every other category of a credit card. IDFC FIRST Bank’s FIRST Classic Credit Card is an example of a lifetime free credit card. 

To opt for the best credit card, you must assess the features of the credit card, keep your spending habits and financial obligations in mind before selecting it, and more importantly, plan for the repayment of your credit card in advance. 

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