Almost everyone wants to have a credit card nowadays but not everyone is aware of how one can apply for a credit card and how can it be used. Other than this, many people have a misconception that credit cards are very expensive to have as they come with high annual charges and accrue interest rates, which can lead an individual towards a debt trap. It is true that some credit cards come with a very high annual fee that is not affordable for everyone, but the fees are totally worth it for those who are wise enough to get the maximum benefit out of a credit card.
It needs to be understood that not every credit card comes with an equal fee, but everyone can get a credit card that suits their requirements. Most of the major credit card issuers nowadays offer a wide range of credit cards that include premium cards with high annual fees as well as basic credit cards that come with a lower annual fee and are quite affordable. You might also be someone who thinks that credit cards can only be availed by those who have a high income. To clear all your doubts and to make you understand the different types of credit cards, we have come up with this article that is surely going to help you:
Types of Credit Cards Based On Annual Fees
All the credit cards do not have a high annual fee, but they come with different features and fees & charges. On the basis of annual fees and charges, credit cards can be categorized as follows:
Super-Premium Credit Cards
Super Premium Credit Cards, as suggested by their name, are the cards that offer the most exclusive benefits across different categories. At the same time, these cards charge a high annual fee and are targeted at high net worth individuals (generally those who earn lakhs every month). Many super-premium credit cards are invite-only credit cards, i.e, only those who are invited by the card issuer can apply for the card and not others. Some of the most popular super-premium credit cards in India are the HDFC bank Infinia Credit Card, AmEx Platinum Credit Card, Axis bank Burgundy Private Credit Card, ICICI Bank Emeralde Credit Card, SBI Aurum Credit Card, IndusInd Bank Celesta Credit Card, etc.
Premium Credit Cards
Premium Credit Cards also come with great benefits and high annual charges, but the fees are generally slightly lower compared to super-premium cards. The fees for these cards are generally in the thousands and the eligibility criteria are not as strict as the super-premium ones. Some of the popular premium credit cards in the market include HDFC Bank Diners Club Black Credit Card, SBI Elite Credit Card, Axis Bank Reserve, Axis Bank Magnus, BoB Eterna, ICICI bank Sapphiro Credit Card, and many more.
Basic/Entry Level Credit Cards
Entry-level credit cards are quite affordable credit cards that come with low annual fees and offer basic benefits across different categories. There are many credit cards that provide great benefits with such a basic annual fee. Some of the popular basic credit cards in the Indian market include the SBI SImplySave, SBI SimplyClick, Axis Bank My Zone, Flipkart Axis Bank, ICICI Bank Platinum, HDFC Bank MoneyBack Plus Credit Card, etc.
Lifetime Free Credit Cards
Lifetime Free Credit Cards are the most desirable credit cards in the market as these come with a zero annual fee and allow the customers to avail of all the benefits & features of cards for free. However, a lifetime free credit card doesn’t mean that you can avoid all the other charges like interest rate, cash advance fee, late payment charges, foreign currency markup fees, etc.
Check Here: List of Lifetime Credit Card In India
After going through the information provided above in this article, you might have understood that there is no clear answer to how much a credit card costs. It can vary for each and every card. Some cards are basic that comes with low or even no annual fee whereas there are some super-premium cards as well, which come with a very high annual fee. One can get a card according to their requirements and spending behavior as this is the most important thing to be considered while applying for a credit card.