What Is Credit Card
The customer takes the credit card so that he can swipe that credit card online, while shopping, in the mall or anywhere. This is a type of loan, due to which after swiping the card, you have to repay the amount in the bank, although it is very difficult for common people to take a credit card because for this you also need many documents. But if you do government, private jobs or business then you can easily get credit card from any bank.
How are credit cards made?
If you want to get a credit card, then you must have some important documents with you. Apart from this, there are also some conditions. which you have to complete.
- 1. Age should be more than 21.
- 2. You either do business or job.
- 3. You should have some decent minimum income annually or every month. (This income is different for all cards)
- 4. It is very important to have proof of your income as well. Eg: Bank statement or salary slip.
- 5. Your ID card which can verify your age and your address.
These are some of the common documents from which a credit card can be made. All banks or financial institutions ask for all these documents.
Apart from this, the most important thing should also be your credit score.
What Is Credit Score?
Whenever we take a loan for the first time for something, then any company gives us a loan on the basis of our bank. When we pay the EMI of that amount on time, our bank fixes a score which reflects our banking value. When we give time to time to that amount, then this score starts forming. Our credit score decides whether we can get credit card or loan from the bank or not. And also, how much loan or credit you will get, it is also decided by this.
What should be a good Credit Score?
The credit score is divided into numbers, in which there is a credit score in different numbers, which keeps on decreasing, it is based on our banking. Like there are numbers of credit score from 300 to 900. The higher your credit score, the better it is for you. Generally scores above 650/700 are considered good.
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When does the credit score increase?
If you keep taking loans, and you also keep repaying all your loans from time to time. So your credit score starts increasing quickly. You have to do your banking well so that no one delays your payment or EMI, all the time, it goes all the time. So your credit score will increase very quickly.
When is the credit score low?
This score also goes down. If you do not pay your loan installments (EMIs) on time or do not repay any loan and often you have to pay late charges too, then your score gradually decreases. With this, no bank gives you any kind of loan or credit card.