If your credit is poor, then you’re looking
for strategies to improve it as soon as possible. Consider using a secured
credit card to establish credit. With secured credit cards, you may get a
limited credit line in return for a reasonable, refundable security deposit. If
you don’t have a lot of credit history or a high credit score, secured cards
are one of the most significant ways to establish credit.
With secured credit cards, you may get a
limited credit line in return for a reasonable, refundable security deposit.
Secured cards are one of the best ways to build credit if you have a low credit
score or a limited credit history. But you should know how to utilize a secured
credit card to build credit if you want to make the most of these credit-boosting
tools.
What is a Secured Credit
Card?
Many advantages and safeguards of a standard
credit card are available with a secured credit card, but you must make a
security deposit first. Why?
Well, Lenders may be worried that you may be a
dangerous borrower if you have bad credit or a short credit history. Depositing
a security deposit offers your lender assurance if you don’t pay your debts on
time. If you responsibly manage your credit line then you’ll receive your
security deposit back.
What will be the cost of your security
deposit? It depends. With certain secured credit cards, you may get a line of
credit with a deposit of around Rs. 499/-. For example, if you want Rs. 40,000
line of credit, you’ll need to make Rs. 40,000 deposit because most cards
require you to match your credit limit with an equivalent deposit. This is one
of the things you need to consider while choosing the finest secured credit
card.
Some of the Top Secured Credit Cards in India
are as follows:
●
Flipkart Axis Bank Credit Card
●
SBI ELITE Credit Card
●
SBI Prime Credit Card
●
SBI SimplyCLICK Credit Card
●
SBI SimplySAVE Credit Card
●
SBI Unnati Credit Card
●
Axis Bank ACE Credit Card
●
HDFC Bank Regalia Credit Card
●
HDFC Bank MoneyBack Plus Credit
Card
●
ICICI Bank Coral Credit Card
●
ICICI Bank Instant Platinum Credit
Card
●
ICICI Bank Rubyx Credit Card
●
Kotak 811 #DreamDifferent Credit
Card
●
YES Prosperity Rewards Plus Credit
Card
●
Bank of Baroda Prime Credit Card
Tips to Improve Credit Score
using Secured Credit Cards
Credit card issuers provide credit bureaus
with data on missed or delayed credit card payments. When these agencies
include such information in your credit report, your credit score is then
affected. However, the issuer will consider payment of your credit balance as a
positive trait, and bureaus will gradually raise your credit score. Therefore,
it’s advisable to always use your credit card as if it is a debit card and only
spend what you can comfortably pay back by the due date.
●
Don’t forget to pay off your
payment by the due date.
●
If you’re unable to make your
payments by the due date, convert your debt into EMIs.
●
Avoid applying for too many
secured or insecure credit cards quickly.
●
The typical credit limit is from
70% to 80% of the deposit. Increase your limit when you reach 75% of your
credit limit.
●
Regularly monitor your credit
score, and if anything appears odd, report it to the credit bureau and the
relevant bank so they can fix it. A credit score that has been fixed in your
credit report may be higher.
Conclusion
Building credit using a secured credit card is
an important step towards regaining control of your money. There is no quick
fix for building or raising your credit score, it takes time. The simplest
approach to increase your credit score is by getting a secured credit card. If
you have a poor credit history or no credit history at all then a secured
credit card provides you with the best opportunity to improve your credit
score. Most of them come with specific rewards incentives that allow you to
save money on your purchases.
Read More: Avoid These Mistakes While Using A Credit Card
Comments
Post a Comment