Secured Credit Cards are Easy to Get
Most credit cards are unsecured credit cards and are given by the bank just by seeing your credibility. There are certain credit cards that are given by the banks by keeping security are called secured credit cards. Security is mainly considered a cash deposit in the form of fixed deposits. The credit limit is given with respect to the fixed deposit with the bank. These kinds of credit cards are taken mainly by borrowers with weak files.
How to Get a Secured Credit Card?
The method of getting a secured credit card is similar to that of an unsecured credit card. The basic steps are as follows:
- Apply for the credit card by filling up a credit card application. There is no difference in the application form of a secured credit card and an unsecured credit card.
- Just like you have to show your credibility to your bank like your bank balance, source of income, credit score, etc.
- There is only one difference in the application form of a secured and unsecured credit card that is, in a secured credit card your account number and routing number are required from where the bank will take money for security reasons against the card.
- Once the bank accepts your credit card application and gives you the credit card its usage will be similar to that of an unsecured credit card. You will be able to avail of all the offers as you get in paying the monthly bills of phones, electricity or on booking flight tickets and hotel rooms.
- Just like in unsecured credit cards the bill comes every month and it is to be paid within the due date else a fine is imposed. In the same way, the secured credit cards also get their bills paid within the due date and the bill comes on a monthly basis.
Reasons to Get a Credit Card with Security Deposits
These days people who are not getting a lifetime free credit card and getting it by providing a security deposit that acts as collateral if the borrower fails to pay the amount. The reasons are as follows:
- People who are not getting unsecured credit cards apply for the credit cards by keeping a security deposit because of many reasons. Suppose there is a medical emergency in your house but you only have a fixed amount of money as your savings. If you use it then everything you saved will be gone. So you can make sure your loved ones get the treatment as well as to keep your money safe you should get a credit card by keeping your savings as security. And you pay back the bill next month once you get your salary.
- Sometimes you like a certain thing and you also have money but it is all you have. It is obvious that you will not spend a penny on it. But it is safe to keep that money as your security and get a credit card so that you can buy whatever you want to and pay them when you get your salary than paying it from your savings.
The Users of Secured Credit Cards
A secured credit card is used by a very less number of people. They mostly use it because people whose credit score is so thin or the financial file is so bad that no bank is ready to give a credit card to him. If he deposits a certain amount of money as security then he can easily get a credit card. Now to make his credit score high, consistency in the credit card bill payment has to be maintained. By paying bills in time for a few months the banks might upgrade your credit limit or if you are lucky enough then the bank might also return your fixed deposit and give you an unsecured credit card.