{"id":1402,"date":"2020-07-31T09:54:27","date_gmt":"2020-07-31T09:54:27","guid":{"rendered":"http:\/\/magicloans.in\/?p=1402"},"modified":"2020-07-31T09:54:27","modified_gmt":"2020-07-31T09:54:27","slug":"classification-of-credit-cards","status":"publish","type":"post","link":"https:\/\/magicloans.in\/classification-of-credit-cards\/","title":{"rendered":"Classification of Credit Cards"},"content":{"rendered":"

Classification of Credit Cards<\/span><\/h2>\n

A credit card is basically a chip of plastic provided by the banks and other financial organizations that allow the cardholder to make purchases according to customer\u2019s ability to pay back the credit with some additional charges. Credit cards are divided into five types. Based on the mode of credit history, Based on credit card status, Based on geographical validity, Based on the franchise and tie up, Based on the category of the issuer. Let us talk about them one by one :<\/span><\/p>\n

1. Based on The Mode Of Credit History<\/span><\/strong><\/h2>\n

Some credit cards are based on the credit history. Like they are classified such that if you are having this particular score you will get this particular type of credit card.\u00a0\u00a0 These are further divided into two types<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Charge Card<\/span><\/h2>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Revolving Card<\/span><\/h2>\n

Let us discuss them one by one<\/span><\/p>\n

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  1. a. Charge Card <\/strong><\/span><\/li>\n<\/ol>\n

    In Charge Card, no interest is charged. The cardholder has to pay every month. But every person cannot get the charged card.\u00a0 It is limited. As in charged cards, we have to pay every month. We cannot keep dues. So charged cards have no interest. Because you are not supposed to carry a balance in your account. And if you pay your balance every month your credit score gets boost up. It will create a good credit history of yours. This card is best for those who pay their dues regularly. They are generally more expensive than other cards but they give lots of benefits to the customers as well. They do not have any present credit limit.<\/span><\/p>\n

    b.Revolving\u00a0 Card <\/strong><\/span><\/p>\n

    In Revolving Credit Card there is always a certain amount of credit is available. When this debt is cleared the customer can again be eligible to borrow the money again. This is called a revolving card because if the customer does not clear his dues by the end of the month they get added to the next month or keep on revolving. That is why it is called a revolving card but the customer has to pay interest properly for the due balance. Revolving credit card allows you to borrow money up to a certain limit continuously. And every time you pay back your debt you will get your credit limit back.<\/span><\/p>\n

    2. Based on Credit Card status<\/span><\/h2>\n

    Some credit cards are based on the status of your credit card. Like the status of your credit i.e if you are having a good credit card status you will get a particular type of credit card.<\/span><\/p>\n

    These are further classified into three kinds <\/strong><\/span><\/p>\n