Nowadays, you can easily find a credit card in everyone's pocket. It has given people many types of convenience. Due to this, the demand for credit cards has increased rapidly. Many people keep more than one credit card with them. But not every card is the same. There are many categories of credit cards and according to that, you get facilities on that card. In such a situation, how to understand which credit card will be better for you? Know about this here.

1. Regular Credit Card

This is a basic or entry-level credit card. If you are entering the world of credit cards for the first time or you do not have a credit score, then this can be the first credit card for you.

For whom is it best?

Students, new job holders, or those who just want a normal card so that they can make online payments and make occasional purchases. In this, you get basic benefits like reward points, discounts on fuel surcharges, and small discounts on online shopping.

2. Premium Credit Cards
When your income grows and your needs change, you start looking at premium cards. These cards offer more benefits and a better experience.

Who is it best for?

People who fly frequently, love to eat in restaurants and don't mind spending on better facilities. Benefits include free lounge access at airports, more reward points, a chance to play golf, and good discounts on dining.

Super-premium credit cards
These are top-of-the-line cards available only to high-net-worth individuals (HNIs). They are often 'invitation-only'. Cards like HDFC Bank Infinia Credit Card or HDFC Bank Regalia Credit Card are examples of this.

Who is it best for?
For businessmen and top executives, whose lifestyle is extremely luxurious. These include facilities like unlimited international and domestic lounge access, personal concierge, complimentary golf games the best reward program, and fine dining discounts. HDFC Infinia or American Express Platinum cards fall in this category.

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4. Co-branded credit card
When a bank launches a card in collaboration with a brand (eg- an airline, fuel company, or shopping website), it is called a co-branded card. JetPrivilege HDFC card, Maruti Suzuki Nexa card, and Snapdeal HDFC card are examples of this.

Who is it best for?
If you have a particular expense that is very high. For example, if you travel by air a lot, then you can get an airline card, or if you shop a lot from a particular website, then you can get its shopping card. Additional discounts, bonus rewards, air miles, and exclusive offers are available on that particular brand.

5. Secured Credit Card
If your credit score is poor or you do not have income proof, then this card is for you. In this, you have to make a fixed deposit (FD) in the bank, 80-90% of whose limit you get as credit limit.

Who is it best for
People whose credit card applications are getting rejected repeatedly and who want to build or improve their credit score.

Co-branded card Loyal customers of a brand (eg- airline, shopping site) get additional discounts and exclusive offers on that particular brand. Its benefit is mainly limited to that one brand or category.

Secured card This is the easiest and most guaranteed way to build or improve credit scores for those whose credit score is poor or there is no income proof. To get this card, a fixed deposit (FD) has to be made in the bank.

Frequently Asked Questions (FAQs)

1. Which should I get as my first credit card?

If you are getting a credit card for the first time, choose an entry-level regular or cashback card with low or zero annual fees. This will help you learn the discipline of credit cards and build a good credit score.

2. What is a credit score and why is it important?

A credit score (or CIBIL score) is a 3-digit number that tells how responsible you are in repaying debt. A good credit score (750+) can help you get loans and credit cards easily.

3. Can I get a credit card without a job?

Yes, you can get a secured credit card. For this, you have to make a fixed deposit (FD) in the bank, which will act as a guarantee for your card.

4. What is the difference between reward points and cashback?

Cashback means getting money back directly on your spending. While reward points require you to redeem them for vouchers, goods or services, cashback is a more straightforward and simple benefit.

5. Is it okay to have more than one credit card?
Yes, if you can manage them responsibly. You can have different cards for different expenses, say one for fuel, one for online shopping. This will help you get maximum benefits in every category.