What is a credit card?

A credit card is a type of credit facility, provided by banks that allow customers
to borrow funds within a pre-approved credit limit. It is a facility that allows
you to pay for various expenses. It comes with a set credit limit. When you use
this card for payments, the issuing entity pays for your expenses on your
behalf. The entity then bills you for the expenses incurred on the card, which
you must repay by a predetermined due date. It enables customers to make
purchase transactions on goods and services. A credit card is a type of credit
facility, provided by banks that allow customers to borrow funds within a pre-
approved credit limit. It enables customers to make purchase transactions on
goods and services.

How was the credit card invented?

Invented in 1950, the Diners Club card is known as the first modern-day credit
card. The idea came from Frank McNamara, a businessman who had forgotten
his wallet while out to dinner in New York. He and his business partner, Ralph
Schneider, would soon invent the Diners Club card as a way to pay without
carrying cash.

The different types of credit cards are:

Regular Credit Cards
Among the different kinds of Credit Card is the regular card -- like the HDFC
Bank Platinum Plus Credit Card. It’s great as your first Credit Card. It offers all
the convenience and safety of a Credit Card and combines it with benefits like
Reward Points and fuel surcharge waivers. There are also three free add-on
credit cards, which you can give to your spouse, adult children, parents,
brothers or sisters.

Premium Credit Cards

As your income and needs increase, you can upgrade to a premium card like
the HDFC Bank Visa Signature Credit Card. A premium card gives you higher
credit limits, more magnificent Reward Points and more benefits. It also
provides some lifestyle-related benefits such as free lounge access at airports.
This is particularly useful if you are a frequent flyer and spend a lot of time in
airports.

Super Premium Credit Cards

These are the top-of-the-line cards that complement your lifestyle – for
example, cards like HDFC Bank Infinia Credit Card or HDFC Bank Diners Club
Black Credit Card. Benefits may include exclusive lounge access, complimentary
golf games, personal concierge, complimentary golf games, best-in-class
rewards, and fine dining discounts. These cards typically come with high credit
limits and applicants can get the card on an invitation-only basis.

Co-branded Credit Cards

Co-branded cards are great when you have a specific type of usage. For
example, if you are a frequent traveller, a InterMiles HDFC Bank Signature
Card can be a great companion on your travels. You can get exclusive benefits
like extra air miles, discounts on flights, checked-in baggage insurance and free
airport lounge access, among others. You can even redeem your miles for flight
booking. Other co-branded cards include Maruti Suzuki NEXA HDFC Bank
AllMiles (car-related privileges), Platinum Times Card (discounts on
entertainment), and Paytm HDFC Bank Credit Card (cashback benefits).

Commercial or Business Credit Cards

If you want to use a card for business-related expenses, a commercial card is
ideal. Achieve savings on your business travels and expenses and easily manage
payments for your purchases. For large companies, corporate cards offer
additional benefits and tools such as 24x7 MIS, spend analysis and seamless
accounting. Examples of HDFC Bank Business Credit Cards are Business
MoneyBack and Corporate Platinum.
CashBack Credit Cards
Moneyback or CashBack Cards allow you to earn cash back on your everyday
spends. These cash back are in the form of rewards which you can use to settle
the outstanding amount on your Credit Card. In addition to cash back, you also
receive benefits such as shopping and dining discounts. Platinum Edge Credit
Card and MoneyBack Credit Card are examples of cashback cards.
Across these different types of cards, some features are standard. These
include smart bill payments, fuel surcharge waivers, interest-free credit, zero
liability after reporting lost or stolen card and EMV chips for security.

Secured Credit Cards

Usually, you must fulfil basic requirements to be eligible for a Credit Card.
These requirements include a certain minimum income and a good credit
score. Individuals like homemakers, self-employed individuals, small business
entrepreneurs, etc., may not be eligible to receive a Credit Card due to lack of
monthly income. In such cases, customers can opt for a Secured Credit Card.
Banks typically issue such types of Credit Cards against a Fixed Deposit (FD).
You may get a Secured Credit Card without furnishing your income proof or
credit score details. The credit limit is usually equivalent to the FD value and
your FDs will continue to earn interest. If you default on your payments, the
bank will deduct the equivalent amount from your FD.

Lifestyle Credit Cards

Lifestyle Credit Cards provide offers and benefits on various lifestyle related
expenditures. You can enjoy offers on shopping, dining, travel and more.
Additionally, you can earn exciting rewards with your Credit Card spends. For
instance, you can avail of the HDFC Bank Regalia Gold Credit Card, HDFC Bank
Millenia Credit Card, HDFC Bank Diner’s Club Privilege Credit Card, etc. under
lifestyle Credit Cards. Some of the lifestyle offers include complimentary airport
lounge access, gift vouchers for certain specific spend limit, higher reward
points, etc.
Travel Credit Cards
A Travel Credit Card is a type of Credit Card that offers exclusive rewards when
you use the card to pay for travel-related spends. The card typically offers
exclusive deals on flight booking, stays, transportation, etc. For instance, you
can get the 6E Rewards – IndiGo HDFC Bank Credit Card that gives you higher
rewards when you book IndiGo flights. Additionally, you can also get a
complimentary flight ticket worth ₹1,500 as the welcome benefit. HDFC Bank
offers different types of Credit Cards for travels, including the Regalia Gold
Credit Card that provides complimentary memberships, flight vouchers and
higher reward points.

Shopping Credit Cards

Shopping Credit Cards are special Credit Cards that come with features that
offer rewards when you shop using the card. The Tata Neu Infinity HDFC Bank
Credit Card offers 5% back as Neucoins on Tata brand spends and 1.5% back on
other spends. You can also opt for the Shoppers Stop HDFC Bank Credit Card
and earn points when you shop at any Shoppers Stop locations. When you
spend a certain amount on the card, you can enjoy additional rewards which
you can redeem for exciting vouchers. Additionally, these Cards also offer other
benefits such as access to airport lounges, fuel surcharge waiver, revolving
credit, foreign currency mark-up, etc.

Fuel Credit Cards

Fuel Credit Cards offer higher rewards on your fuel purchases. The IndianOil
HDFC Bank Credit Card rewards you with fuel points on various spends. You can
earn 5% of your spends as fuel points at IndianOil outlets across the country.
Plus, you can earn 5% of your spends as fuel points on groceries and bill
payments. You can redeem the accumulated fuel points for free fuel at
IndianOil outlets. You can also redeem the points as statement credit.