Credit cards aren’t just plastic money. They are much more than that. They are functional and practical especially when you are running short on money and need to pay up immediately. They primarily play the ‘short-term’ finance game where the bank extends you a helping hand by offering you short term lines of credit.
Credit Cards and its uses infiltrated the market in a massive way back in 2014 and 2015. Although they are being widely used, far and beyond, banks make sure that you are a credit-worthy applicant towards their security against potential losses. Therefore, owning a credit card is surely worth it, but make sure to have enough to pay off your purchase within the due date provided by the bank.
What are secured Credit Cards?
Credit cards and the services they offer have evolved over the years since their inception. They are of two kinds- normal credit cards and secured credit card. So, what’s the difference between the two?
Normal credit cards are also known as ‘unsecured loans’ as they do not come with indemnification as an instrument of safeguarding the loaned money. On the contrary, secured credit cards are issued only against an asset which can be used as a penalty in case the borrower is unable to pay within the time-frame.
Hence, secured credit cards are a good option for those who have a low CIBIL score or are not employed or have a lower monthly income than the parameter set by the lender.
What are the benefits of a secured credit card?
Owning a secured credit card comes with quite a few advantages. Some of them are:
- Improving the users CIBIL Score: Secured credit card allows you to build your credibility by laying out a financial discipline while detailing you on a healthy card usage so that the borrower pays the dues on time.
- Building Credit History: A secured credit card deems useful when you have no credit history. This secured credit card helps you to build that trust with the bank making you eligible for a normal credit card after a while.
- Increasing the credit limit while accruing interest on FD:Getting a secured credit card from a bank where one has a FD account, is always advantageous. This helps to increase your credit limit along with earning the interest on the FD account.
Eligibility of Secured Credit Cards:
When it comes to secured credit card India, which are the best credit cards in India for some, it is important that the borrower is eligible for its issuance. Every bank has its own set of eligibility parameters for obtaining a secured credit card- from requiring a minimum deposit to opening a fixed account with the bank which works as a guarantee if you are unable to pay the bills.
Best Credit Cards in India:
Secured credit cards are a huge hit in the Indian market as they help customers develop their credit profiles over time. Some of the best options that we have to offer you as secured credit card India:
- Platinum Choice SuperCard
The Platinum Choice SuperCard looks into your daily credit needs. It offers tons of other benefits along with Emergency Advance, interest free cash withdrawals and even EMI conversion on shopping expenses. You even get complimentary health benefits upto a limited amount with this one.
- Platinum Choice First-Year-Free SuperCard
This one comes with no joining or annual fee and allows you to enjoy privileges on lifestyle expenses. With every online or online usage of the card, the user incurs one reward point which ultimately accumulates to be milestone bonuses. This one too provides emergency personal loan, interest free ATM cash withdrawal and fuss free EMI conversion.
- Platinum Plus SuperCard
The Platinum PlusSuperCard comes with unimaginable financial benefits and endless reward points. It provides you with benefits like special access to the airport lounge, discounts and offers on movie tickets, fuel surcharge waiver and lots more. They also welcome you as a privileged customer by adorning you with a welcome gift exclusively on your first transaction.
- Platinum ShopDailySuperCard
The Platinum ShopDailySuperCard is one of the best credit cards Bajaj Finserv offers to its customers. It comes with the power of four cards in one single card. This one works perfectly by adding value to your expenses while creating provision for you to enjoy high-savings.
- Platinum Edge SuperCard
The Platinum Edge SuperCard offered by Bajaj Finserv looks into your easy and quick finances for your everyday needs. It is loaded with benefits and accumulating rewards on your annual expenses have never been easier.
Although there are not many differences between a secured credit card and a regular one, the former does come with some limitations and obligations. After all, these cards need collateral which is usually cash deposits. Nonetheless, the features offered by secured credit cards work out well for some, especially those who need to build on their acceptability with the lender.
Resource Link- https://kwirmedia.com/how-secured-credit-cards-can-improve-your-cibil-score/