Credit card is the most common form of credit. In fact, it is the first credit that most of the people apply. A credit card is that implausible form of credit that opens the door of convenience. Not only can it act as a friend who comes to aid at the time of emergency, a credit card also help to build up the credit score and strong credit history.

Today, varieties of credit cards are on offer from various banks and credit card companies. Choosing the right credit card can be a daunting task.

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Categories of credit cards

Regular credit cards are those vanilla cards that get used only for the purpose of day to day transactions with the objective of getting free credit period viz. buy now pay later. These cards also extend the option of paying back in parts (in fact as low as 5% of the total amount due) every month.

Reward cards primarily are the ones that extend a specific benefit over and above the vanilla cards. These normally have tie ups with large brands and extend discount programs on various purchase segments like petrol, eating out, entertainment etc. These at times extend exchange of the reward points against variety of such specific merchandize.

Secured cards are issued by many banks against the collateral of a fixed deposit. With a limit up to 80% of the fixed deposit account, these offer all benefits similar to any vanilla card. These could be a good option for those who struggle to get a credit card on account of various reasons.

Cash back cards are gaining popularity these days. Such cards offer cash back on purchases that could be directly credited to the card account or could also be redeemed against the annual fee levied on the card.

Frequent fliers/airline cards are co-branded with a particular airline. Such cards a good option for frequent fliers since they can avail host of benefits from the airlines. Higher flying miles, accumulating miles against normal spends, discounts etc are a few advantages to the card holder.

Specialty credit cards are the co-branded cards that run loyalty programs extended by a specific large brand.

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