Even individuals with less-than-ideal credit scores have options for obtaining a credit card.
1.Secured Credit Cards
Unlike traditional credit cards, secured credit cards require a security deposit, typically in the form of a fixed deposit (FD) or mutual funds. The credit limit is usually capped at a percentage of the deposited amount. Using a secured card responsibly and making timely payments can help you build a positive credit history and gradually improve your credit score.
2.Unsecured Credit Cards
These cards cater to individuals with lower credit scores or limited credit history. Compared to secured cards or those offered to individuals with good credit scores, unsecured cards for bad credit generally have significantly higher APRs, making borrowing more expensive. These cards might have annual fees, balance transfer fees, and other charges, further increasing the overall cost of using the card.
3.Student Credit Cards
Designed specifically for students with limited credit history, student credit cards often have lower credit limits and stricter eligibility criteria. However, they can be a good starting point for building credit responsibly.
4.Store-Specific Credit Cards
These cards, offered by various retail chains and partnered banks, provide rewards and discounts on purchases made at specific stores. However, these might have limited usage outside those stores.