What is Secure Credit card in India and how to get it. I explained all about it here.

Dear Steemit Friends,

Today I am sharing information about credit card. Govt is promoting digital India and cashless payments in country so for cashless payment credit card is one of the most used method. 

Credit card is a very good 'lending' medium to meet the needs of sudden loss of money. people like it so much because keeping it together and using it is very convenient. getting a credit card is not difficult for working salaried people. Generally, it is provided on behalf of the bank where they have salary account. However, if the credit history (CIBIL score) of the applicant is not good or if there is no credit history, then credit card application can be rejected. Banks usually prefer to give loans and credit cards to the people who have good CIBIL scores. Score of 750 in CIBIL report is considered as very good. Now that about them who ask for a credit card, but credit score is poor or even does not have a credit history? For such people this secured credit card is available.   

What is secured Card? 

As you can understand by its name, a credit card that is available against fixed deposits held in cash collateral deposits. Secured credit cards are given to those people who are unable to get a normal card.

This type of card is secured because if the credit card bill payment is not paid by the credit card holder then bank has the all rights to recover the balance by reducing its Fixed Deposit amount.

Card holder can’t close his Fixed Deposit Account until he has the secured card. Usually a bank offers a card with a maximum limit of 85% of the amount for a fixed deposit. The deposit works like a security. Even with this fact, both cards and FD work as a regular card or deposit. You also earn interest on the fixed deposit. 

Who should take this card:-

A secured credit card can be a good credit card for you if

• You are unemployed.

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

• Your CIBIL score is low or even no history.

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

• You live in an area which is blacklist by banks. 

Benefits of Secure card 

A secured credit card can be used like another regular credit card. 

• It helps to build a credit history (also called as CIBIL score) 
• It also helps to improve your credit score, so in the future you are more likely to get a loan. To keep your credit score in good position, you just need to pay your credit card outstanding on time.  
• You wont’ have to pay extra charges in exchange of card for a fixed deposit. This allows the card holder to get interest on a Fixed Deposit Account as well as increase the credit limit without any extra expenses. 

That’s not all it even offers some more-

• Since it is a secured credit card and it is offered to the applicant after a security deposit, so it is very easy to get the card approved.  
•  Some secured credit cards are also there who offer grace period to their customers, that means, some extra days are available to pay for payment of the bill. But remember that all the late payment transactions are reported by banks to Credit Bureau.
• Since this card is given in exchange for a person's fixed deposit, so the interest rates applicable on these credit cards are much less as compared to other regular credit cards. If you do not make the payment of your credit card bill on time then bank can easily recover their money by breaking your fixed deposits.
• Secured credit cards not only help you use for money but also help to increase your credit score, provided you pay the bill on time and never delay the card’s payment.

have a great time.
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@alokkumar121