Know About the Various Credit Card Types, Benefits & Compare to Choose the Best One for You

Know About the Various Credit Card Types, Benefits & Compare to Choose the Best One for You

A credit card offers you a quick and easy way to access credit. Unlike a debit card, which can be used only to draw upon the funds in your bank account, a credit card gives you the option of borrowing money up to a certain limit with the understanding that you would pay it back with interest. Most banks and financial institutions offer their own credit cards to their customers. Additionally, several banks offer special credit card types tailored towards specific customer needs such as shopping credit cards, lifestyle credit cards, fuel credit cards, travel credit cards, etc.  For instance, if you are someone who travels a lot, a travel credit card might help you save on hotel bookings and airline tickets. Similarly, fuel credit cards are tailored towards people who spend a lot on fuel.

How to Apply for a Credit Card

To apply for a credit card simply log on to the website of your bank, navigate to the credit cards section and fill out a simple application. You may need to provide certain KYC documents to assess your creditworthiness and once these are verified, you are good to go. For instance, you can apply to Finserv MARKETS RBL Bank credit card by visiting their website here. Alternatively, you can visit the nearest bank branch and meet with a customer service representative or call on your bank’s customer care helpline. Users can avail themselves of a number of credit card benefits that come with credit cards without any extra cost.

Features and Benefits of Credit Cards

Most credit cards offer certain common benefits to users. These credit card benefits are:

 

Rewards Program

Every time you use your credit card to pay for a transaction, you earn certain reward points. Once you have accumulated sufficient reward points, these can be redeemed against benefits such as gift vouchers or air miles.
 

Fuel Surcharge Waiver

If you use your credit card to pay for your fuel, your bank may waive off fuel surcharge, subject to a minimum level of spending.
 

Cashback Benefits

A common credit card benefit is cashback under which if you use your credit card to pay for transactions above a certain threshold as defined by your bank, you earn cashback on select purchases leading to major savings.
Travel Benefits Using your credit card to pay for your travel may entitle you to several benefits such as a discount on hotel and airline prices, air miles, or in some cases, even travel insurance.
 

Lifestyle Benefits

 

Credit card companies frequently offer users great deals on lifestyle expenses such as fine dining, entertainment, wellness, etc.

 

Improve Your CIBIL Score

 

If you regularly use your credit card and are punctual about making your credit card payments, your CIBIL score gets a boost, making you eligible for loans on lower interest rates and with minimum paperwork.

 

 

Besides these, other credit card benefits offered by some premium cards include airport lounge access, insurance coverage, and eligibility to apply for add-on cards for the holder’s family members. When deciding to get a credit card, it is best to compare credit cards offered by different banks and opt for the one that best suits your needs.

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