what is a secured credit card and how does it work,secured credit card

 What is Secured Credit Card

 

what is a secured credit card and how does it work,secured credit card

Credit card is a good 'lending' medium to meet the needs of sudden sudden loss of money. Keeping it together and using it is very convenient because people like it so much. For people working on salaried, getting a credit card is not difficult. Generally, it is available only on behalf of the bank where there is a salary account.

However, if the credit history of the applicant is poor or there is no credit history, then its credit card application can also be rejected. Banks and finance companies usually prefer to give loans and credit cards to people who have good credit scores (750 or more). What happens to those who ask for a credit card, whose credit score is poor or does not have a credit history? A secured credit card is available for them.

What is a credit card

As the name suggests, a credit card is available in return for the secured credit card, fixed deposits held in cash collateral deposits (the bank deposited in the card). Secured credit cards are given to those people who are unable to get a normal card. This type of card is secured because the bank has the right to recover its loan by reducing its Fixed Deposit Account if the credit card bill payment is not received by the credit card holder.

The card holder can not close his Fixed Deposit Account until he has the secured card. Typically a bank offers a card with a maximum limit of 85% in exchange for a fixed deposit. The deposit works like a collateral. Despite this fact, both cards and fixed deposits work as a regular card or deposit. You also get interest on that fixed deposit.

Who should take this card

A secured credit card can be a favorable credit card for you

• You are unemployed.

• Monthly income is less than the minimum income limit prescribed by the bank.

• Your CIBIL score is low.

• You work in a 'blacklisted company' in the bank's eyes.

• You live in an area which is in blacklist.

Benefits of Secured Credit Card

• A secured credit card can be used like any other regular credit card.

• It helps in building a credit history.

• It also helps to improve your credit score, in which in the future you are more likely to get a loan, especially a large loan. To keep your credit score in good standing, you just have to pay your credit card bill on time.

• In return for a fixed deposit, no extra charge is paid when you take a credit card. This allows the card holder to get interest on a Fixed Deposit Account as well as increase his credit limit without any extra expenditure.

There are more benefits

• Since it is a secured credit card and it is provided to the applicant after a collateral deposit, hence it is very easy and very easy to get it.

• Some secured credit cards are also those that give grace to their customers, which means that there is some extra day available to pay for the delay in payment of the bill, but remember that credit bureaus are late The news of the payment comes through, so it is good to make payments on time.

• Since such a card is given in exchange for a person's fixed deposit, the interest rates applicable on such credit cards are much less compared to regular credit cards. If you do not receive the payment of your credit card bill on your behalf, the bank can easily recover your money by breaking your fixed deposits.

• Secured credit cards not only help you to increase your credit score but also to increase your credit score, provided you have to pay the bill on time and never have to make a mistake.

 

what is secure credit card
what is secure credit card

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