People who don’t have a good credit score, for them, the secured credit card is the best option. Basically, it is a credit card that is secured by collateral that is placed by the user with the bank in lieu of getting approval for the card.
With the use of the secured credit card, people with poor credit score can build credit and apply for a regular credit later on. It gives the opportunity to build a good credit score to the people so that they become eligible to apply for the regular credit cards.
People who have good repayment behavior, their credit limit is increased by the bank without asking for extra collateral deposits. In this way, the overall credit score with an increase credit limit.
This article is going to cover all the following topics:
- Secured Credit Card Types
- Key Features and Benefits of Secured Credit Card
- Secured Credit Card – Eligibility Criteria
- Secured Credit Card – Documents Required
- Secured Credit Card – Rate of Interest
- Paisabazaar is here to help find the best Secured Credit Card
- Apply online for Secured Credit Card at Paisabazaar.com
- How to Open a Secured Credit Card by visiting the bank?
- Top Banks Providing Secured Credit Card
- Secured Credit Card in Post Office
- How to make the correct Secured Credit Card choice?
- Secured Credit Card FAQs
Secured Credit Card Types
It is better to prefer credit cards from the bank that is reputed because they have a significant value of credit attached to it.
- ICICI Bank Instant Platinum Credit Card: People who have a minimum requirement, they should look for this credit card. There is no need for additional documents to get this card. The credit time period of the card is up to 50 days and it allows cash withdrawal limit up to 100 percent. The flexible credit limit is the biggest advantage of this card.
- ICICI Bank Coral Credit Card: People who have a fixed deposit with the ICICI bank, for them, this secured credit card is great. Basically, the secured credit card is connected to the fixed deposit. 85 percent of the amount of fixed deposit becomes the credit limit. All you need to avail this card is an ID proof. The secured credit card has a permanent microchip, the microchip ensures that the transactions are secured.
- SBI Advantage Plus Card: This secured credit card requires you to have a fixed deposit account in SBI. The credit limit is up to 85 percent of the fixed deposit limit. Basically, it is an international secured credit card. The extended credit option is exclusive that allows you to pay the minimum amount every month and carry forward the balance that is unpaid at the lowest charges of 2.25 percent a month or 27 percent a year. It offers a card’s Flexipay option that allows you to convert your transactions into EMIs.
Key Features and Benefits of Secured Credit Card
- The bank that lends the credit card has its own customer policy. This is why every credit card is different.
- You have the option to choose the card that offers maximum benefits as per your needs.
- You can choose the reward points or discounts for choosing the best credit card.
- There is no need for additional inquiries of your credit history with the secured credit card.
- The process of approval is easier and faster in a secured credit card. This is because the banks are accepting the security deposits of the borrowers.
- The complete information of the repayment behavior and the information of your credit limit is reported.
- You can get interest on your security deposit with some banks while others choose interest-bearing savings account.
- There is a grace period along with some secured cards. With the grace period, you have extra days to make the payment.
Secured Credit Card – Eligibility Criteria
The eligibility criteria for a secured credit card depends on the policy of the bank. There are some banks who require a fixed deposit while others require a minimum amount deposited in the bank account for the given period of time.
Secured Credit Card – Documents Required
The documents required for a secured credit card depends on the bank that is lending the secured credit card. Some bank requires minimum documents while others only require ID proof.
Secured Credit Card – Rate of Interest
The interest rate of ICICI Bank Instant Platinum Credit Card is 2.50 percent per month or 34.49 percent annually. The interest rate of the SBI Advantage Plus Card is 2.25 percent per month or 27 percent annually.
Paisabazaar is here to help find the best Secured Credit Card
Paisabazaar helps the customers to find the best-secured credit card. You can search for the best suitable secured credit card as per the information provided by them. They help customers by guiding them through different types of secured credit cards.
Apply online for Secured Credit Card at Paisabazaar.com
You can easily apply for a secured credit card with paisabazaar.com. All you have to do is enter the details to check for the eligibility criteria for a secured card. It requires your location, your gross monthly income, your full name, and phone number to check the eligibility and unlock best offers.
How to avail of a Secured Credit Card by visiting the bank?
To avail of a secured credit card, you have to first research every bank and their secured credit card offer. Compare the security credit card offers of different banks and choose the most suitable credit card for yourself. You will see all the benefits and features of the secured credit card on the website of the bank.
Top Banks Providing Secured Credit Card
The facility of secured credit cards is provided by almost all the banks. The top banks that provide the facility of secured credit cards are Axis Bank, Kotak Mahindra Bank, State Bank of India, ICICI Bank, Syndicate Bank, Central Bank of India, and many others.
Secured Credit Card in Post Office
The Indian post office also provides the facility of the secured credit card. For the purpose of availing a secured credit card, a person can visit the nearest post office. The interest rate is very low in the Indian post office.
How to make the correct Secured Credit Card choice?
To make the correct secure credit card choice, you should understand the offer of the secured credit card. Go with the secured credit card that suits your requirements.
Secured Credit Card FAQs
- Who can apply for a secured credit card?
Anyone can apply for the secured credit card. If your score is poor, then the secured credit card is a great option for you. It gives you the opportunity to improve your credit score and be eligible for regular credit cards.
- For secured credit card approval, what are the requirements?
The requirement for the approval of the secured credit card is the basic information, income information, and credit data.
- How to get a secured credit card?
All you have to do is get an application for the secured credit card by going to the bank. You can also compare the secure credit card online and then apply for it. Every security card is different from the other as it depends on the individual bank. So, choose the credit card that suits your requirements well.
This article covers everything that a person should know before availing a secured credit card. It is the best way to improve your credit score so that you become eligible for regular credit cards.