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Type of Credit Card You Can Purchase Based On Your Credit Score

· Credit card Service,Finance

Nowadays the demand for credit cards has increased due to an increase in inflation. From your income, you can easily purchase a lot of things but you need to also save some money for a bad time. This gap between saving and spending money is filled by the use of credit cards. Now at which extent you can fill the gap depends upon your credit score. This is because your credit score actually decides the type of card you can use.

 

A credit score is the mathematical interpretation of your relationship with payments or debt. If you have a habit of timely paying all your bills then you may be having a good credit score but if you don’t pay bills on time then surely you are having a bad credit score.

 

Whenever you are going to apply for a credit card, you are applying for a different kind of loan. The company which is going to put money on you needs something as a guarantee. This credit report prepared by bureaus tells a lot about the person applying for a credit card.

 

Based on your credit you can have two types of Credit cards:


Secured credit cards: These types of credit cards are available for the beginners or persons having a low credit score. If you want to purchase this card then you have to pay a collateral amount. This is the advance money you need to pay equal to your credit limit. This type of card is also called a credit cards for bad credit.

 

Unsecured credit cards: These types of cards are available for the people having a good or excellent credit score. These cards have a lot of benefits like low-interest rates, high Rewards etc.