The Pros and Cons of Different Types of Credit Cards in India-Advantages and Disadvantages of Credit Card-WikiFinancepedia

The Pros and Cons of Different Types of Credit Cards in India


Credit cards have been the go-to payment option for a lot of Indians in recent times, and if you pick up any market study, it will indicate the same. The reason for this exceptional growth is obvious, the benefits this payment car brings to the table. Whether it is reward points or cashback, it offers a lot to its customers. Let us look into the pros and cons of different types of credit cards in India in this topic.

Furthermore, the availability of credit card applications online has also made it easier to access this payment card. But a very prevalent question here is, which card to go for? Well, let’s figure that out.

Pros and Cons of Different Types of Credit Cards in India

Here are the details about the pros and cons of different types of credit cards in India you need to know to find out the ideal credit card for you –

Regular Credit Cards

The first one on this list is the standard credit card. Now, there is nothing special about them as they follow the thumb rule of credit cards and allow you to make transactions easily.

Pros: Well, it comes with a standard credit limit, which you can increase based on your usage, and get all the usual credit card benefits.

Cons: Lacks specialized offers and reward points and misses out on special benefits.

Co-branded Credit Cards

Co-branded credit cards are the ones that the payment card providers develop with certain brands and then introduce them. For instance, if a particular credit card provider enters a partnership with an e-commerce platform. Then they will introduce a credit card, which will offer additional perks for shopping from that e-commerce platform.

Pros: Eye-catching discounts and deals on shopping from the co-brand, whatever it may be. You get a chance to make the most seasonal deals and earn a lot more.

Cons: It can come at a higher joining and annual fee than regular credit cards. Also the terms of usage are also particular, which you need to understand carefully.

Business Credit Cards

As the name suggests, these credit cards are typically reserved for companies, and they are also known as corporate credit cards. Now, as an individual, you cannot access this credit card, but as an employee of a company, you can.

Pros: Excellent perks and high credit limit for you to meet all your expenses.

Cons: The benefits are available to the company, and you cannot always take advantage of them as an individual. Also, these are limited to businesses, and you cannot access them.

Student Credit Cards

These are unique sub-type of credit cards. Tailored to meet the needs of students, these credit cards are an excellent way for these pupils to learn financial management. Usually available against a parent’s primary credit card, it offers students financial freedom.

Pros: It is a great option for students to meet their expenses and learn financial management.

Cons: The credit limit is nominal, and there are a few perks to discuss. Also, students themselves cannot access these cards; their parents need to be a guarantor for them.

Travel Credit Cards

Tailored to meet the requirements of travelers, these credit cards are a great option for those who wish to explore the world. These credit cards come with a variety of benefits associated with traveling, like discounts on travel and accommodation booking, special deals on restaurants, etc.

Pros: You get special deals on hotel and train or flight tickets along with airport lounge access. Also, if you buy your flight ticket with these credit cards, you can get a free upgrade on the ticket and earn air miles.

Cons: The benefits are limited to a particular domain, and outside of that, there are not many notable advantages. Also, the additional charges on these credit cards are usually higher.

Now, apart from these, there are other credit cards options in the market, which include:

  • Fuel credit cards
  • Cashback credit cards
  • Entertainment credit cards
  • Lifestyle credit cards

These are some of the notable sub-types of credit cards available in India for you to choose from. So, you plan to get a credit card, compare credit cards, and then decide.

Things to Know While Comparing Credit Cards

Having said that, if you are equating credit cards, you must remember a few pointers. These are –

  • The eligibility criteria and the documents required
  • Total credit limit and the provision to increase it
  • The repayment terms and EMI facility
  • The additional charges, including annual and joining fees
  • Reward point accumulation and terms of redeeming them

Final Thoughts

Read tips on how to manage your credit card payment along with your research for add-on knowledge. Considering the number of different credit cards available in the Indian market, it will confuse you. However, the right way to eliminate this confusion is by understanding the pros and cons of different types of credit cards in India and then making a decision.

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