Credit card is just like a financial opportunity. To avail this opportunity you need to show discipline in bill payments. If you have availed a card before then you know what requirements are and what you need to do for getting a credit card of the higher limit. But in case you have not availed any card before and you wish to avail one then you are going to enter an ocean. This is because there are variety of cards available in the market. There are a lot of offers and bonuses accordingly.
Not you but your credit score decides if you are eligible for a credit card or not. Your credit score can be defined as the measure of your how do you pay your bills and loans. This is a way of checking the seriousness in doing repayments. Thus your credit score tells credit card providers that you should be provided with the financial benefits or not. To reduce the confusion in the market about different types of cards available, this blog is prepared.
Below are the different types of credit card you should consider buying:
Secured credit cards: This type of card is used by people having no credit history or when the credit is damaged. Secured cards are a good way of building credit score as these cards have security options. When you avail a secured credit card, you need to make a deposit which is equal to the limit of your credit card. This security is kept because in case the cardholder is unable to pay money, it should be recovered with the help of security. The security amount is also known as collateral.
Unsecured credit cards: These cards are most common in the market. These are also called a credit cards for excellent credit. This is because these cards are purchased by the people having excellent credit. While purchasing an unsecured credit card, you don’t have to make any advance deposit. There are numerous benefits of these credit cards like low-interest rates, rewards, cashback, joining bonus etc. Before buying an unsecured credit card you should read terms and conditions properly. This is because these cards have higher limits. If you have purchased irrelevant items and at the end, you are unable to pay money then your credit score can get affected.
Balance transfer credit cards: A balance transfer credit card helps you when you are under credit card debt. By using these cards you can save interest. You can transfer your balance from one credit card to another. Many balance transfer credit cards have a transfer fee of generally 3%.
Travel cards: These types of cards are for people who like to travel a lot. These types of credit cards offer you a lot of exciting deals on travel tickets and hotel stays.
Cashback rewards credit cards: These types of cards allow you to earn cashback for using credit card balance. Most of the cards offer a certain amount of cashback on different purchases.
Student credit cards: These credit cards are available for the students. There is no requirement of high credit as students don’t have any credit history.
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