Different types of Credit Cards and their uses

Vineet Golani


A brief introduction to Credit Cards:

Credit cards are a piece of plastic which are issued by banks and financial institutions. They are used as a mode of a transaction between two parties.

Credit cards are famous for their payment system, wherein the customer or the party liable can transact/borrow more money than they currently hold. The Liable amount transacted by the customer usually has to be paid by the month-end to the bank, sometimes along with an interest amount.

Different types of credit cards and their uses:

Several banks issue different types of credit cards depending on your usage requirements. We have listed all the different types of credit cards available in the market as of today.

Cashback credit cards:

These credit cards are the ones where the customer gets a small percentage of return on every transaction he/she makes with the card offering this facility. The range of cashback for these cards lies between 5 to 25 percent. The customer can get instant cashback on the purchase of fuel, electronics, or even daily essentials like groceries and electricity bills. For instance, HDFC bank offers cashback of up to 7,500 on purchasing an iPhone with their credit card.

Business credit cards:

Business credit cards serve their purpose as the name suggests, to cater to the working industry. It enables all types of businesses to keep track of their total expenditure. What’s more employees of a firm can be issued these credit cards which can be operated under one account to streamline expenditure.

Lifestyle credit cards:

Lifestyle credit cards are the cards wherein you get certain benefits associated with a particular category like membership to golf clubs, hotel offers, dining offers, etc. Lifestyle credit cards are directed towards customers who prioritize shopping and traveling.

Dinner’s credit card:

A diner's card provides the best benefits for all the foodies out there. One holding this card can avail of benefits such as priority table reservation, higher discounts on dining as well as cashback points and offers. This card is highly recommended for those who are frequent at going out for their meals.

Prepaid credit cards:

Prepaid means already paid for like a debit card wherein, there is already an existing balance in an account and you can use your credit card as per the amount available in that account. These cards do come with additional reward benefits too.

Travel credit cards:

These credit cards usually have attractive offers on traveling targeted to those who love traveling. These credit cards offer a certain number of points for every 100 Rs spent which can be redeemed on flight bookings and hotel bookings. These are usually offered by the bank providing the credit card tied up with a company involved in the travel sector. For eg: Make my trip ICICI credit card. Some travel credit cards also offer free lounge access.

Student Credit cards:

These credit cards are designed specifically for those students going abroad for higher education. Interest rates are usually lower at an attractive rate on this type of credit card. These credit cards are issued to students above the age of 18.


Speaking of daily use, cash back credit cards are highly suggested. For international travelers, student credit cards are a must for those pursuing higher education and prepaid cards for tourism purposes. Lifestyle credit cards are recommended for people who are shopaholics and love going out, exploring. Diners' credit card ensures that food lovers get good deals on their meals outside. Business credit cards are most useful if you intend to keep a tab on the expenses regularly as well for availing of loans and overdraft facilities.

There are a variety of cards available as mentioned earlier, the main focus that you have to put on is what card caters to your need most, and accordingly, you can approach your bank and make a decision on the type of card that will be the most beneficial for your daily use.