Finance

Why Secured Credit Cards Are Popular Nowadays?

Planning to get a credit card online? It’s no difficult task, considering the technological advancement in the financial sector. Responsible credit management is crucial for long-term financial well-being, making timely payments, and practising cautious spending. Secured credit cards provide a solution for individuals to build or rebuild their credit history.

Whether you’re a newbie or have a low credit score, getting a secured card is easy. Unlike regular cards that require you to have an optimal score, this option doesn’t need so. Why? Read on to know more.

Brief Overview of Secured Credit Cards

A secured credit card is one of the ideal options to build a positive credit score. While regular cards require a stable monthly income and a good credit score, secured credit cards are more accessible as they do not need any such documentation.

You can get up to 75% – 85% of the FD amount as the card limit, depending on the issuer. The higher your FD amount is, the higher your card limit. Some issuers may even offer up to 100% of the FD amount as your card limit.

This card is also a secured investment tool that assures returns at attractive interest rates. Opting for this card is ideal:

If you are a student
If you are a graduate looking for a job
If you are a homemaker
If you are a senior citizen with no regular income source

Benefits of Having a Secured Credit Card

Improving your credit score is a significant advantage that you can enjoy with a secured credit card. Take a look at the other benefits:

You can easily qualify for these cards
You can enjoy the benefits similar to a regular card
You get to keep a tab on your spends, as your credit limit is based on the deposit amount
You can improve your credit utilisation ratio with responsible usage

Tips to Build Your Credit Score with Secured Cards

A credit score is a three-digit numerical summary that shows your creditworthiness. Lenders check this score before approving your loan requests. Even when you plan to apply for a regular card, issuers check this parameter. After all, they check your repayment capability with this score.

When credit card or loan repayments are late, your credit score decreases. At the same time, you can boost your score if you pay off your credit card debt on time.

Here are some tips to boost your score using a secured card:

Pay your bills on time and in full
Keep your credit utilisation ratio below 30%
Use your card for regular, everyday purchases
Review your credit report regularly
Check your bill statement and report discrepancies, if any

You can significantly improve your credit score by consistently paying your bills on time and keeping track of them. The One Credit Card is an excellent option if you plan to get a secured credit card. It helps you establish your credit history and offers a 5X reward program on top two purchases every month, making it a wise financial choice.
The FD-backed card requires you to start an FD with an amount as low as ₹5,000. You can demonstrate your creditworthiness in a secure and structured manner through the One Credit Card app. This credit card online app lets you track your purchases while allowing you to spend confidently. Apply now and unlock a world of benefits at your fingertips.