9 Different Types of Credit Cards in India

It’s crazy how many credit card options exist in India. Whether you’re constantly ordering food online, a shopaholic on Amazon and Flipkart, or always jetting off to new places, there’s a credit card that’s perfect for you. Banks have different cards for all kinds of people and spending habits, like cashback cards, rewards cards, travel cards, and more. Let’s check out the different types of credit cards in India.

Different Types of Credit Cards in India

I’ve categorized credit cards into nine common types to help you find the best fit for your needs. Go through the list, determine which type suits you best, and then select the ideal card within that category.

Before we begin, here’s a simplified view of all credit card categories:

Credit Card Type	Best for	Key Features
Cashback Credit Cards	Maximizing cash back on everyday spending	Flat cashback rate on purchases, no rewards points
Reward Credit Cards	Earning points or miles for various rewards	Redeem points for gift cards, products, travel, or even cash
Travel Credit Cards	Frequent flyers and travellers	Miles or points for travel bookings, airport lounge access, other travel benefits
Fuel Credit Cards	High fuel consumption	Rewards or discounts on fuel purchases, fuel surcharge waivers
Entertainment & Food Cards	Dining out, movies, concerts, streaming services	Discounts, cashback, or reward points on entertainment and dining
Co-Branded Credit Cards	Loyal customers of a specific brand or retailer	Exclusive discounts and rewards at partner stores, limited rewards outside the ecosystem
FD-Backed Credit Cards	Building credit history, limited or low credit score	Secured against a fixed deposit, credit limit tied to FD amount
Premium Credit Cards	High-income earners seeking luxury benefits	High annual fees, airport lounge access, concierge services, luxury hotel perks, high reward rates
Business Credit Cards	Business owners and entrepreneurs	Optimized for business spending, expense tracking and management, higher spending limits

1. Cashback Credit Cards

Imagine getting a percentage of your spending back automatically in your credit card account. That’s the magic of cashback credit cards, and they happen to be my favourite too.

These cards generally offer a flat cashback rate for every purchase you make online or offline, except for certain categories like railway tickets, fuel, jewellery, and others that don’t generate much revenue for the credit card company.

Most credit cards in this category carry both a joining fee and an annual maintenance fee. If you’re lucky, the bank might waive off these charges for you, but that isn’t very common.

A perfect example is the SBI Cashback credit card. This card offers a flat 5% cashback on all online spending, capped at a maximum of ₹5,000 per month. That totals up to ₹60,000 cashback annually.

I’m not suggesting you spend that much to earn the maximum cashback, but it’s like receiving a small discount on every purchase, and over time, those savings accumulate. This is currently the card I use the most.

When applying for cashback credit cards:

• Cashback Categories: Ensure the card offers cashback on most categories you frequently spend on online. Will you get rewards for random online purchases? If so, that’s a bonus.
• Fees: Look for cards with no annual fee or a minimal fee that can be easily waived by reaching a certain spending threshold.
• Net Cashback Calculation: Even if you decide to pay the annual fee, calculate your net cashback percentage. Consider your estimated annual spending, the average cashback you’ll earn, and subtract the annual fee from the cashback amount. This will give you a clearer picture of the card’s overall value.

Here are popular cashback credit cards in India:

• SBI Cashback
• Amazon Pay ICICI
• Flipkart Axis Bank
• Swiggy HDFC credit card, etc.

2. Reward Credit Cards

Reward credit cards are similar to cashback credit cards, but instead of cash back, they offer rewards in the form of points or miles. You can then redeem these points for gift vouchers (from retailers like Amazon, Flipkart, and Myntra), products, or other options.

Some reward credit cards, like HDFC Millenia, even allow you to redeem points for cash. This flexibility makes them an attractive card category to consider.

When applying for a reward credit card, be sure to check the reward categories and ensure they align with your spending habits. It’s also crucial to understand the value of each reward point. Some cards may advertise terms like “4x reward points,” but if each point is only worth Rs. 0.25, the rewards might be less substantial than they initially appear. This can be misleading and make the program less rewarding overall.

Here are popular reward credit cards in India:

• SBI Card Prime
• American Express Smart Earn
• HDFC Regalia Gold
• Amex Gold
• IDFC First Wealth, etc.

3. Travel Credit Cards

Travel credit cards offer miles or points for your purchases, which you can later redeem for flight and hotel bookings. Most of these cards also come with additional perks like airport or railway lounge access, among other benefits.

Many credit cards in this category partner with major hotel chains or airlines. My current favorite is the Axis Vistara Infinite credit card, which offers a complimentary Vistara Business Class ticket with Gold membership. You can earn up to four additional Business Class tickets by reaching spending milestones.

Similarly, the Axis Vistara (regular) card provides a free Economy Class ticket with Vistara Base membership. For every Rs. 1.5 lakh you spend, you earn another free ticket, up to three times a year.

Before applying for a travel credit card, consider which airline or hotel chain you prefer and which class you usually travel in. Business Class might not be available on your most frequent routes, so choosing the regular card might be a better option in that case. It’s also important to do a cost-benefit analysis to ensure the card’s rewards outweigh any potential fees.

Here are popular travel credit cards in India:

• Axis Vistara Infinite
• Club Vistara IDFC First
• Air India SBI Signature
• Marriott Bonvoy HDFC Bank
• Standard Chartered EaseMyTrip

4. Fuel Credit Cards

Fuel isn’t typically the most rewarding category for credit cards. Most cards charge an extra surcharge when used for fuel purchases, without offering any reward points. However, some credit cards cater specifically to those who spend a lot on petrol or diesel for their vehicles.

These cards often partner with major petrol pump chains in India and offer rewards in the form of points that can be redeemed for fuel.

For example, the IndianOil HDFC Bank Credit Card gives you 5% of your spending back as Fuel Points at IndianOil outlets, on groceries, and on bill payments. You earn 1 Fuel Point for every ₹150 spent on all other purchases, including UPI transactions. The card also offers a 1% fuel surcharge waiver, and you can earn up to 50 litres of fuel per year.

Here are popular fuel credit cards in India:

• IndianOil HDFC Bank
• BPCL SBI Card Octane
• ICICI HPCL Coral
• IDFC First Power and Power+

5. Entertainment and Food Credit Cards

Falling under the broader category of lifestyle credit cards, these cards, as the name suggests, are designed for those who enjoy dining out or spending on movies, concerts, and streaming services.

You generally receive discounts, cashback, or reward points for spending on food and dining. You might also get free movie tickets or memberships like Zomato and Swiggy depending upon the card.

For example, the Kotak PVR Gold credit card gives you a free PVR movie ticket when you spend ₹10,000 or more per billing cycle. This increases to two free PVR movie tickets if your spending exceeds ₹15,000. Additionally, it offers cashback on food and beverages at PVR.

Similarly, the IndusInd EazyDiner card provides a free 12-month EazyDiner membership. You can get an extra 25% off (up to ₹1,000) every time you dine out, along with a complimentary alcoholic beverage.

Here are popular food and entertainment credit cards in India:

• EazyDiner IndusInd Bank
• Swiggy HDFC Bank
• Axis Bank MyZone
• RBL Bank Icon
• Kotak PVR Platinum and Gold credit cards

6. Co-Branded Credit Cards

You might have seen credit cards issued by a bank but in partnership with a specific brand or retailer. These are co-branded credit cards. You get exclusive discounts and rewards when you shop with these credit cards at those particular stores.

For example, the Amazon Pay ICICI credit card gives you 5% unlimited cashback for purchases made on Amazon (with Prime membership). Similarly, Axis Flipkart credit card gives you 5% unlimited cashback for purchases made on Flipkart.

Choose these credit cards only when you generally shop a lot from that retailer chain. I frequently buy stuff from Amazon, Flipkart, and Myntra which is why I have all three- Amazon Pay ICICI, Flipkart Axis, and Kotak Myntra Rupay credit cards.

However, there’s a downside – these cards may offer limited rewards or benefits for purchases outside of the partner brand’s ecosystem, so it’s important to have other cards to maximize rewards on those expenses.

Here are popular co-branded credit cards in India:

• Amazon Pay ICICI
• Myntra Kotak
• HDFC Tata Neu Infinity or Plus
• Airtel Axis Bank
• Club Vistara SBI Card

7. FD-Backed Credit Cards

If you are a student, have limited credit history, a low credit score, or simply want to build your credit, consider FD-backed or secured credit cards. These cards are secured against a fixed deposit (FD) you hold with the bank. You continue to earn interest on your FD as usual, while the bank provides you with a credit card with a credit limit typically ranging from 90% to 110% of your FD amount.

These cards are generally offered as life-time free. You can use them like any other credit card. However, your FD will be marked as a “lien,” meaning you cannot withdraw it without closing the credit card. Also, if you fail to make your payments, the bank may use funds from your fixed deposit to settle the outstanding dues.

My favourite card in this category is the IDFC First WOW card. It gives you a credit limit of 100% of your FD amount, your FD earns a higher interest rate at IDFC First Bank, plus benefits like free roadside assistance, and your reward points never expire. It also comes with a RuPay digital card, allowing you to make UPI payments.

Here are popular FD-backed credit cards in India:

• IDFC First Wow
• Kotak 811 Dream Different
• ICICI Instant Platinum
• SBI Unnati

8. Premium Credit Cards

These credit cards cater to high-income individuals. They usually come with hefty joining and annual fees, along with a range of exclusive benefits such as airport lounge access, concierge services, luxury hotel memberships, and higher reward rates.

These cards have strict qualifying criteria, and not everyone will be eligible. For example, the Axis Magnus card has a joining/annual fee of ₹12,500 and offers unlimited domestic and international airport lounge access, along with extra discounts at Oberoi and Trident hotels. You also get up to 40% off at over 4,000 restaurants in India.

Similarly, the HDFC Infinia Metal Edition credit card provides complimentary nights and buffet meals at participating ITC hotels, a complimentary Club Marriott membership for the first year, unlimited airport lounge access worldwide for primary and add-on members, unlimited complimentary golf games, and more, for an annual and joining fee of ₹12,500 + taxes.

Here are popular premium credit cards in India:

• HDFC Infinia Metal Edition
• Axis Magnus
• Amex Gold Charge
• Axis Bank Reserve
• SBI Aurum credit card

9. Business Credit Cards

As the name suggests, these credit cards are designed for businesses (small, medium, or large corporations) and entrepreneurs. They are intended for business expenses, not personal use.

Business credit cards are optimized for typical business spending patterns and offer exclusive benefits like expense tracking, management, and integration with accounting software. They also generally have higher spending limits. Both employers and employees can use business credit cards.

Here are popular business credit cards in India:

• HDFC Business Moneyback
• SBI Platinum Corporate
• ICICI Bank Business Advantage
• Kotak Corporate Gold

Credit Cards For Everyone

As you can see, there’s a credit card for everyone – students, salaried professionals, business owners, and everyone in between. Beyond that, there are cards specifically tailored to various lifestyles and spending habits.

To make the most informed decision, analyse your current spending patterns and anticipate your future needs. Then, choose a credit card that offers the best value, whether it’s in the form of direct cash rewards or indirect benefits like hotel memberships, flight vouchers, or gift cards.