Choose the credit card based on your lifestyle needs

Adhil ShettyBankBazaar.com

Indian consumers have seen the launch of many credit cards by banks in association with companies. These are lifestyle cards which give extra benefits to people living a certain lifestyle. These cards are co-branded by the bank and the company in question. Usually these cards give extra points for using specific services of the co-branded company.

At the same time, there are credit cards which give extra discount or points on any outlet. These cards may not be co-branded.

Fuel credit cards

For people who drive for long hours and spend significantly on fuel, there are many cards in the market. These are called fuel credit cards. Essentially, they are normal credit cards with extra savings or points for fuel purchases.

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Adhil Shetty

CEO|BankBazaar.com

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There are many banks in association with energy companies like HPCL, Indian Oil, and others, offering credit cards for people spending significant time on driving. Here are some of the banks and oil companies jointly offering credit cards.

Apart from extra points which can be encashed later in the same outlet, these cards also offer other benefits such as points for buying groceries in HPCL or Indian Oil retail outlet in the gas station, if they have one. Moreover, the surcharge may be waived.

Few cards may not be tied to a specific company. These cards provide benefits in all the gas stations. For example, HSBC credit card offers fuel surcharge waiver for users of its credit card.

Frequent flyer cards

With increased mobility and economic activity, a large number of professionals travel to different locations very frequently. For such people, there are frequent flyer credit cards. Banks offer these cards in association with airlines. Hence, if a person uses a specific airline frequently, it pays to have a frequent flyer credit card.

Apart from these specific cards, there are frequent flyer cards which are not associated with any particular airlines but give miles on travel from any airline. For example, Citi Bank PremierMiles credit card provides 6 miles for every Rs 100 transaction with any of the airlines. Similarly, HDFC has a separate credit card to be used in all the airlines.

Apart from miles earned, these cards also offer discount or points on car rentals, hotel booking, and availing airport facilities like shopping at the airport. People who fly frequently must use these cards to avail the discount and earn free miles.

Affinity cards

Affinity cards are issued by banks in association with an institution. These cards are preferred by students, alumni and present and former associates of the institutions. For example, ICICI bank issues affinity cards with IIMA, ISB, and many other institutions of repute.

These cards are usually taken up by alumni of these institutes. These cards offer points on purchases. For example, ICICI ISB Gold credit cards offer 1 point for purchase of every Rs 200.

Dining

Dining in fine restaurants becomes rewarding with extra points and discounts on credit cards specific to dining. The card companies are associated with restaurant offer reward points when the consumer eats in the specific restaurant.

For example, HSBC platinum credit card offers 10% to 20% discount on multiple restaurants.

Retails and groceries

If you are worried about inflation like most Indians are, co-branded credit card with a retail outlet can provide reward points which can be used to buy more. ICICI bank with Big Bazaar has launched a credit card named “ICICI bank Big Bazaar Shakti credit card” which can be used to shop in Big Bazaar outlets across the country.

It offers four reward points for Rs 100 purchases. It also provides gift vouchers if the purchase exceeds a certain limit. For example, it offers gift vouchers worth Rs 200 for every Rs 1000 spent in Big bazaar.

Important points on lifestyle cards

Most of the co-branded cards have different relationship levels (such as Gold, Silver, and Platinum) depending on the volume of spending. Hence, when you apply for a lifestyle credit card, select the best that fits your lifestyle.

In this article, we have seen main features only. But the cards offer many other features such as joining reward points, points on using the card for allied services offered by the company, etc. For example, frequent flyer credit cards provide reward points not only for frequent flying but also for car rentals. It is advisable for customers to consider all features before they decide on a specific card.

Finally, make sure that you pay the bills on time. Credit card is a bad source of credit if you don’t pay the bills on time. The monthly interest can go up to 3%. Hence pay on time, enjoy the reward features and enhance your credit score in the process.