Why should you consider Secured Credit Card?
In finance, being aware of your credit alternatives is essential. Among the various credit alternatives, the idea of a Secured Credit Card stands out as a crucial instrument, particularly for people trying to start over or repair their credit score.
Secured Credit Cards, as opposed to regular Unsecured Credit Cards, provide a different perspective on credit, which can be very helpful for a variety of people, including newly independent young adults and those getting over financial hardships.
In this blog, we will explore the features, functions and the benefits of getting a Secured Credit Card.
What is a Secured Credit Card?
It is a type of Credit Card that requires cash deposit from the customer. This payment (cash deposit) serves as a security for the Card and usually establishes the credit limit. The available credit limit of a Secured Credit Card is often equal to the deposit amount, preventing cardholders from going over and above their spending limits.
Compared to Unsecured Credit Cards, which are not secured and are dependent only on the credit history of the cardholder, Secured Credit Cards are very different. People who don't have enough credit history or a low credit score to qualify for regular Credit Cards, Secured Credit Cards are the best fit. Cardholders reduce the risk for the issuer by offering collateral, which facilitates the application process.
Benefits of having a Secured Credit Card
First of all, in comparison to Unsecured Credit Cards, the Secured Credit Cards are easier to obtain (even those with poor or no credit scores can obtain the Card), as the security deposit lowers the issuer's risk.
Improving one's credit score is a major benefit of the Secured Credit Card. Credit Bureaus receive reports of timely payments done by the cardholder and low credit utilisation ratios, which gradually raise the credit scores.
Additionally, compared to cash or Debit Cards, the Secured Credit Card provides a safer option for purchases. A level of protection that cash cannot match is provided by the cardholder's immunity from liability for unauthorised transactions in the event of theft or loss.
To further increase the usefulness of the Card, several issuers may reward prudent usage by raising the credit limit without requiring a new deposit. These Cards can also be used for regular spends, which would help the cardholders to manage their money and establish credit.
Selecting the best Secured Credit Card
The Instant Platinum Chip Credit Card and Coral Credit Card against FD from ICICI Bank offer unique benefits. The Instant Platinum Chip Credit Card is a great choice for those looking for a no-frills, secure Card, while the Coral Credit Card is perfect for individuals who enjoy rewards and luxuries.
By choosing the right Card, ICICI Bank customers can make their financial transactions more rewarding and as per their lifestyle needs.
ICICI Bank Instant Platinum Chip Credit Card
Fees: No joining or annual fees.
Lifetime free access
Easy online application
Eligibility: Anyone who can open an FD Account with a minimum amount of Rs 50,000 can avail this Credit Card.
Benefits: Enhanced security with a Platinum Chip, flexible spends and credit building.
ICICI Bank Coral Credit Card against FD
Rewards: Earn points on every purchase, redeemable for various benefits.
Point accumulation: 2 points per Rs 100 excluding fuel, 1 point per Rs 100 on utilities and insurance.
Milestone Programme: Earn up to 10,000 points annually on high spends.
Benefits: Redeem points for gadgets, appliances and luxury items; enhances your lifestyle through rewarding shopping experiences.
Careful thought must go into choosing the best Secured Credit Card. Look for Credit Cards that offer various Reward Programmes, competitive interest rates and affordable fees.
Choosing a Card that would provide the best value for your particular needs can be done by comparing several possibilities. One should take into account the issuer's standing and level of customer support as well.
Secured Credit Cards provide a route to better financial health with perks like quick acceptance and credit building potential. Do your research, evaluate your options and then choose a Secured Credit Card that best fits your budget. Seize the chance to use an ICICI Bank Secured Credit Card in order to establish a strong financial foundation with ICICI Bank.
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