Whenever we think about cards issue by any Bank, we think about credit card and debit card. But do you know that there are other type of cards also a bank can issue. As we know, every card has its own use case. In this article, we will discuss about the cards issue by bank.
In addition to credit and debit cards, banks also issue other financial cards. Here’s a list;
Prepaid cards
This is a card that you use to deposit a certain amount of money in advance and is not linked to your bank account. You can only spend the amount you have loaded on this card. Like debit cards, they can also be used in many places.
Secured credit card
This card is intended for those with low CIBIL scores. You have to deposit some money first. The credit limit is given based on the amount deposited. By making timely payments using these credit cards, you can increase your CIBIL score.
Charge card
A charge card is a type of credit card. It allows you to buy goods without having to use cash. However, when it comes to bill payment, the entire bill has to be paid at once. Payments like EMI and minimum due are not possible.
Virtual cards
These cards are intended for online transactions only. Credit and debit cards can be obtained virtually. These cards cannot be obtained physically. They have more security compared to physical debit and credit cards.
Banks and financial institutions do not issue credit cards to people with low CIBIL scores. However, using secured credit cards can increase your CIBIL score. These cards are very useful for people with low CIBIL or credit scores. Along with this, prepaid cards are very helpful for those who want to control their spending and reduce unnecessary expenses. Along with credit and debit cards, prepaid cards and secured cards from banks require a separate application. Banks issue these cards to eligible customers. Keeping in mind the CIBIL score of the credit card user, some other precautions need to be taken.
