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Credit Cards - Types & Categories

 In this edition, let's talk about the different types of credit cards that are available in the Indian market. Just a note here, I will be discussing the cards based on the basic Indian context. There are cards such as Chase, Charles Schwab and Amex US which I will not be covering since they are not for everyone. We will be dividing the whole universe into 2, first we will see the cards based on their Annual Maintenance charges(AMC), and next based on their use cases. 

So let’s begin with AMC based categorization -


Entry level cards : These cards, as the name suggests, are your entry into the world of credit cards. The best part with them is that you don’t have to put a lot of thought into how to use them or how to get any benefits from them. They are simply to give you a small credit line without any further benefit in using them.

Key Features : 

  • Low or no AMC

  • Very low fee waiver limit

  • Low Credit Limit (usually within INR 1 lac)

  • Very Straight forward Terms & Conditions

  • Low or no upfront rewards/discounts

Suggested Cards : 

  • SBI Cashback

  • ICICI AmazonPay

  • Axis Flipkart


Mid Level Cards : These are cards for folks who have some understanding of the credit lines given to them, and they can reap certain benefits out of it as well. They have a slightly higher AMC as well as the Credit Line.

Key Features : 

  • Low or medium AMC

  • Medium Fee waiver Limit (but can be achieved)

  • Decent Credit Limit (usually within INR 3-5 lac)

  • Easy to Moderate Terms & Conditions

  • Decent Reward rate

Suggested Cards : 

  • American Express Membership Rewards (Amex MRCC)

  • HDFC Regalia

  • HDFC Tata Neu Plus Rupay


Premium Cards : These are cards for users who have good knowledge of credit cards, and who spend a lot on it as well. These a good for users who can forecast their spends and direct them accordingly

Key Features : 

  • Moderately AMC

  • Higher Fee waiver Limit (can be achieved by targeted spending)

  • High Credit Limit (usually within INR 3-10 lacs)

  • Somewhat Tricky Terms & Conditions (to not let customers exploit the rewards)

  • Better Reward rate

Suggested Cards : 

  • American Express Gold

  • Bank of Baroda Eterna

  • Yes First Reserv

  • HDFC Tata Neu Infinity Rupay


Super Premium Cards : These are cards for users who have great knowledge of credit cards, and who spend a lot on it as well. This is because these cards come with a high AMC. These cards are not for everyone and one should avoid taking them if you cannot justify the spending needed to reap the benefits. A majority of these cards are also Invite only, so one cannot simply apply for them.

Key Features : 

  • High AMC

  • High or No Fee waiver Limit 

  • Higher Credit Limit (usually within INR 5-20 lacs)

  • Tricky Terms & Conditions (to not let customers exploit the rewards)

  • Great Reward rate as well as intangible benefits

Suggested Cards : 

  • Axis Magnus for Burgundy

  • HDFC Infinia

  • Yes Bank Marquee

  • HDFC Diners Black

  • ICICI Emeralde Private


UHNI Cards : These are cards for Ultra High Networth Individuals only and come with an extremely high AMC per year. For most people, they will not make any sense. They are not only great as credit cards but also work as a flex in social gatherings!

Key Features : 

  • Extremely High AMC

  • Generally No Fee waiver Limit

  • Usually no Credit Limit (can even buy high value items with them such as cars)

  • Best in Class Reward rate along with Bespoke benefits that might not be utilized by even the 0.1% of the country’s population

  • Dedicated RM and Concierge desk

Suggested Cards : 

  • American Express Platinum Charge

  • Axis Burgundy Private

  • Indusind Bank Pioneer Heritage

  • American Express Centurion


Next, we will see credit cards based on their features. This might help you figure out a card for yourself as per your use case.


Cashback Cards : These are the simplest cards with a very straightforward feature of direct cashback. The cashbacks are credited to the credit card account at the end of each billing cycle and you can use it to offset the bill amount. The cashback depends on various factors such as the card variant, the type of transaction and the biller. Some of the most famous and popular cash back cards are ICICI Amazon Pay, Axis Flipkart and SBI Cashback


Reward Points Cards : These cards do not provide a direct cashback, but provide reward points on every transaction. To extract the best possible value from such cards, one needs to be a bit savvy. They can be really rewarding if you are able to extract the most of the points given to you. The general value of points ranges from INR 0.20/point to INR 2.5/point. The base rate is generally kept for redeeming against the bill or buying e-vouchers of different brands. Some popular cards in this category are HDFC Infinia, Axis Magnus for Burgundy, American Express Gold, American Express MRCC.


Travel Cards : As the name suggests, these cards cater to the travel bugs. The benefits of these cards are very specific to traveling. They do have a lot of features, but in most cases will suit those people who either travel a lot or want to travel more. Airport/Railway Lounge accesses, Airport pickup and drop services, Immigration Fast Track, transfer of points to specific hotels and airlines, etc. are few of the many benefits that come with such cards. Axis Atlas and American Express Platinum Travel are two of the more popular in this category.


Co-Branded Cards : Sometimes, the card issuers will tie-up with popular brands to launch cards that provide very very specific benefits on only that platform. This can be brand specific discounts or extra cashback when transactions are done on their app/website/in-store, or loyalty points of that particular brand that can be used to offset the purchases from their in-store or e-commerce platforms. These cards are useful to people who spend a lot on a certain brand every month. HDFC Tata Neu cards, IndusInd EazyDiner, Myntra Kotak, BPCL SBI Card Octane are few popular and rewarding cards in this category.


Lifestyle Cards : These are the cards that might not look very rewarding at the first glance, but they have a lot of bespoke benefits. Not for everyone, these cards provide the cardholder with the highest level of lifestyle benefits such as top tier memberships to various hotel chains. Which give you the flexibility of early check-ins and late check-outs, automatic room upgrade, etc. Some of these cards also provide entry to certain exclusive events, which again might not be useful for all. As you must’ve guessed, these cards are the ones from the Super Premium category.


We will be discussing all of these different types of cards in detail in future posts, but for now, I think just letting you know of the options that we have in the market should be good. This might also serve as a Hors d'oeuvres to the articles to come! As always, please feel free to let me know if you have any questions on any of the things we have discussed by dropping a comment. Also, do share it around if you think this blog helps you understand the world of credit cards better and can help your friends and family too!

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