To avail a credit card, an applicant must carry a good credit score of 750 or above. Thus, individuals with a low or zero credit score find it difficult to borrow in emergencies or need. A secured credit card comes handy in these situations. NBFCs provide this credit card against a fixed deposit with the concerned financial organization.

• Easy approval

As assets back this facility, card issuers don’t need to carry financial risk contrary to the regular credit cards. Thus, issuing authorities can provide this card to individuals with a poor credit score or nil credit history or income proof with easy approvals.

• Improve credit rating

Also, individuals who wish to re-establish a strong credit rating for future references can avail of this credit card and with timely repayment, can reconstruct their credit score. Similarly, individuals with zero credit history can also opt for it and build a good credit rating.

• Credit utilization ratio

Furthermore, the credit limits of these cards are restricted by the deposit amount. So, individuals must need to cut down the expenses on these cards. That way, it becomes easy to maintain the credit utilization ratio as well.

• Lock-in of the deposit

As the deposit is used here as collateral, so it is locked in with the lending organization as long as the cardholder wishes to avail the borrowing facilities. Nonetheless, the deposit accumulates interest that can help in increasing the credit limit.

By improving credit score with these cards, individuals can apply for products with more benefits. Credit cards like the Bajaj Finserv RBL Bank SuperCard come with industry-first features.

To sum it up, even though secured credit cards don’t provide several benefits like regular credit cards, this is a wise choice for individuals who need budget management and to build an excellent credit rating.