The Best Suited Credit Card For Individuals

Today there are a lot of credit cards in the market. Every card has its unique feature like some cards are for general use and some cards are for specific purposes like student credit cards or best gas station credit cards. In this blog let us know about credit card comparison detail:

•Prepaid credit cards: These cards are generally purchased by the people who have a bad habit of repayments. In case of prepaid business credit cards, the customer has to first load the balance into the account and then he can use the card. The credit card limit can be altered by the request of the customer as he has to use it according to his needs. Like other types of credit cards, prepaid credit cards are also acceptable worldwide. 

Prepaid credit cards don’t have any irrelevant charges and the rule of minimum balance or repayments is not applicable here. If a person is thinking of building the credit score then it must be noted that these credit cards cannot build or improve the credit score as the person is using his own money. These cards are similar to debit cards but they are not linked to any account. These cards can also be termed as credit cards for bad credit. 

•Limited purpose credit cards: These credit cards are only used for Limited purposes or at specific locations. The annual fee or interest applied on the balance used is quite low as there are smaller purchases from the card. These cards are often used in day to day needs. Let us see some examples of limited purpose credit cards:

• Gas credit cards
• Store credit cards

•Business credit cards: These credit cards are specially designed for use in businesses. Through these cards, any person can differentiate between his personal expenses and business expenses. This way there is more Professionalism in the business and there are easy regulations in the spending. As these cards are required for business purposes, the big amounts are transferred. Thus, to avail these cards a person should have a high credit score as banks and Companies cannot compromise their money. There should be a trust factor between the customer and the banks and Companies. 

In case a person has an average credit score then further it is decided by the bank and companies that the business credit card should be issued or not. To check this, they check his monthly turnover and the profit of the company. 

The person who wants to use this type of card should use it responsibly. This is because as these cards have a high credit limit, in case there is late repayment then the interest accumulated will become high. This can damage the credit score. 

•Secured credit cards: The secured credit cards are the best-suited cards for the people who are having a bad credit score or bad credit history. To check why let us see how these cards are regulated. 

A secured credit card is backed through a cash deposit. This amount is called as collateral. When a person opens his credit card account, he has to deposit the amount equal to the credit limit. Thus, the customer can alter the credit limit as he has to pay the advanced amount accordingly. 

This deposit is required as the person is not having a good credit score. It is difficult for banks and companies to trust. Thus, this collateral can reduce the risk of money getting defaulted. If the person is unable to pay the bill, banks and companies can use this collateral amount to recover their loss. 

These credit cards are also used to improve the credit score. By constantly using these credit cards, any customer can gain the trust of the respective banks so that it can allow him to use the credit cards for excellent credits. The bank refunds the deposit in case the customer is able to qualify for the Unsecured credit cards.

• Unsecured credit cards: Unsecured credit cards are the most types of credit cards available in the market. These cards are used by the people who are having good or excellent credit. These cards are called as Unsecured credit cards because the debt or the credit borrowed by the customer is not secured by the collateral amount. 

As in this case banks are not asking for an initial deposit, the terms and conditions should be strictly followed. In terms and conditions, there are a lot of terms like Interest rates, miscellaneous fee, credit limit etc. All the conditions should be studied carefully as the debt is going to be high. The customer should follow all the tips given by experts for better repayments. One of the main tips which everyone should know is the use of credit should not be more than thirty percent. This way customers are able to repay the amount easily and the chances of defaulting decreases.