A card that is backed by payment and can be used later as collateral is a Secured Credit Card. A secured credit card is mostly issued to people with no credit history or says limited credit history. The secured credit cards help the users to build their credit profile. The card can be issued easily after the customer pays a certain amount to the bank to act as the limit of a sad card. Basically the amount you maintain as saving is what determines the credit limit you’ll be able to use.
The secured credit card helps to build credit and contributes towards maintaining a good credit card score. It takes no time to get a secure credit card from the bank as all they need is to check your credit history or require an ID proof and just like that, they give you the card without any hassle. Most of the people are scared of the credit cards because of paying the fee and hence doesn’t get a credit card ever. For those peoples, it’s suggested to use CC GEN.
Here we have gathered all the details in this article about the Secure credit card and how you can get it and how they actually work. Credits are a must-have for the future in case you want to buy properties, cars, or simply invest somewhere a hefty amount. With the help of this article, you can get your secure credit card in no time and understand how they can provide you with maximum benefits that you are simply yet to avail of. Read further to know more about secure credit cards, their benefits, how to get them, and which ones are the best ones to have.
Difference between Secured and Unsecured credit cards
The noteworthy difference between both types of credit cards is their credit history. A secured card is given to a user with little or no credit history to build their creditworthiness. In exchange for submitting the FD or saving, that particular amount will be set as the limit for your card. If everything goes well, the bank will keep increasing your monthly limits.
Whereas the unsecured credit card has no collateral. In this, the number of factors determines how much the credit limit will be. The factors that determine these factors are the credit report, credit score, and the payment records of the credit cardholder. In case you don’t have sufficient credit, it’s safe to get a secure credit card as the interest rate is low and they have any joining fee.
After having an understanding of what a secure credit card is and how it is different from a regular credit card, let’s take a look at its features.
Some Golden features of Secured Credit Card
- Accepted both online and in-store
- High annual percentage rates
- Similar to its counterpart, the secure credit card can also be used to make purchases both online and in-store without any hassle. However, while purchasing makes sure to monitor the amount you’re spending as it shouldn’t exceed the limit.
- Because of the low credit score, the secure credit card holds high risk. Even the prepaid credit cards are issued at the high-rate to those with a bad credit score.
- Approval is given fast and easily for secure credit cards because the banks get risk-free as they already have deposits from the cardholder.
- Few banks also offer interest on the security deposits. This way you can also utilize your credit card and get the interest too.
- For people with bad credit history, a secured credit card is a good way to clear their history.
- Some banks provide the grace period where you get the extra time duration to pay for your dues.
How to get a secure credit card
The process for applying to get a secure credit card is not at all different from that of applying for an unsecured one. A simple and fast process makes it easier to get a secure credit card. The banks just analyze your period credit scores and need no else information related. However, there are a few things that one must keep in mind before applying for a secure credit card. Here read the points and understand-
Each bank has its own eligibility criteria for approving the secure credit card. Some banks may require the minimum deposit for the issuing of credit cards, others may ask you to get an FD or Fixed Deposit to serve as collateral. Just in case you’re not able to pay your dues.
2. Credit limit
People with cards sometimes tend to forget that there is always a limit on the cards. It is necessary to make sure that you’re not over boarding that limit and ruining your credit score. Start with a lower credit limit and only increase it when you are sure that you’ll be able to pay the dues on time. The bank keeps tabs on your credit score to check your performance.
Some of the best-secured credit cards.
Here we have gathered the list of some of the Best Secured credit cards available in the Indian market.
SBI Advantage Plus Card
Considered as the best-secured credit cards in India, the SBI advantage card provides many benefits. The card can be used both nationally and internationally. The limit offered is up to 85% of the amount deposited in the bank. The interest is also provided after 555 days on the fixed deposit.
ICICI Bank Coral Credit Card
The bank offers 85% of the credit limit on the fixed deposit. If you want to avail of the card, you need to have Rs 20,000/- in your account for at least 180 days. Only an ID proof will be required to avail of the credit card. With the help of a microchip, the transactions are secure. The joining fee is as low as 500 rupees and there are many additional benefits available with the card. Also, you get free airport lounge access.
ICICI Bank Instant Platinum Credit Card
People with minimum credit requirement can avail the maximum benefit of this card. The applicant needs to have a minimum of Rs 20,000 in the account of the same bank to avail of this instant platinum credit card. No Id card s required. The interest rate is as little as 2.5% per month on the card and has 3 microchips embedded for the high-security purpose. With this card, you can get free credit for up to 50 days. Fuel surcharges also get a waiver of 2.5 % on all of the transactions. You can also get a 15% discount on 2500+ restaurants all over India.
Axis Bank Insta Easy Credit Card
The credit card is issued against the amount holder has deposited in the bank. The card has a flexible credit limit. The best feature the Axis Bank Easy Credit gives is that you can convert any amount above 2500 Rs into EMI. There is no annual fee for a secure credit card. The bank also provides its cardholders with Global Emergency Assistance where if the holder reports the loss of card and requests for an emergency card via the Visa International Global Assistance Program.
SBI Unnati Credit Card
This card gives you 1 reward point for every 100 rs spent and you can also avail Rs 500 cashback in 15 days if you achieve annual expenditure of Rs 50,000 and more from this card. There are no annual charges for this card for the first four years. If there is no outstanding balance, you get interest free credit card period between 20 to 25 days. This card is simply best for people who just require a credit card and has no prior experience with how to use one. Also, the benefits provided make this secured credit card and amazing choice.
Secure credit cards are a great way to build your credit easily. Simply go to the bank, and see if you qualify for the secure credit card or not. The process is easy and the benefits are much greater to avail. Get yourself a secured credit card and avail of all the benefits that come with them. We have gathered some of the best-secured credit cards for you to get. We hope this article will help you. Mentioned above are some of the best-secured credit cards currently with most of the benefits and features.