What to Know Before Applying for a Crypto Credit Card – Blockchain News

What to Know Before Applying for a Crypto Credit Card – Blockchain News

Nexo’s deal with MasterCard created a huge development in the world of crypto: for the first time, crypto holders could borrow against a variety of digital currencies and use them to make day to day transactions. With this co-branded crypto card, users could easily spend digital assets and not have to worry about conversion fees or minimum monthly repayments. Since then, more financial institutions have designed crypto credit cards, streamlining the process of paying with crypto while also giving users the opportunity to earn cryptocurrencies through their transactions. If you want to apply for a crypto credit card, here’s what you need to know.

How crypto credit cards work

ZDNet’s article on cryptocurrency credit cards notes that they work similarly to the cashback or rewards system of most credit cards. When you connect your crypto credit card directly to your crypto wallet, you can swipe your card to pay for transactions using cryptocurrencies. Then, your purchases will earn you rewards points that you can use to redeem cryptocurrencies. Just like any regular credit card, you’re required to pay back your crypto credit card balance.

Crypto credit cards still affect your credit score

How you manage your crypto credit card will still factor into your overall credit score. A helpful overview on AskMoney explains that the main credit history factors your credit score will use are your payment history, the total amount you owe, and the length of your credit history. So just like you would if you were using a