Categories Credit Card

Building Credit Safely: The Benefits of Secured Credit Cards in India

Establishing a credit history is important for financial well-being, and in India, secured credit cards offer a secure path for those looking to build or rebuild their credit. Let’s explore the concept of secured credit cards in India, the best options available, and the diverse benefits they bring to the table.

 

What is a Secured Credit Card?

A secured credit card is a special financial tool that requires a security deposit, acting as collateral against the credit limit. It serves as a bridge for individuals with limited or damaged credit history, allowing them to display responsible credit behaviour.

 

Best Secured Cards in India:

Flipkart Axis Bank Credit Card:

This card is mainly for online shoppers; it offers a secured credit option with perks like cashback, discounts on Flipkart purchases, and accelerated reward points.

SBI Simply CLICK Credit Card:

Geared towards online shoppers, this secured card offers rewards on online spending, making it an ideal choice for the digital-savvy consumer.

ICICI Bank Coral Credit Card:

ICICI’s secured credit card provides a gateway to a world of benefits, including dining discounts, movie offers, and fuel surcharge waivers.

IDFC FIRST WoW Credit Card:

With No joining fee, this card provides secured credit along with benefits such as dining discounts, insurance benefits, and reward points.

SBI ELITE Credit Card:

SBI’s secured offering comes with a range of privileges, including travel benefits, exclusive shopping discounts, and milestone benefits.

 

Benefits of Secured Credit Cards in India:

Credit Building: Secured credit cards enable users to build a positive credit history, which is important for future financial initiatives.

 

Access to Credit: Individuals with no or low credit history may struggle to obtain traditional credit cards. Secured cards offer a viable option for access to credit.

 

Financial Discipline: Security deposits encourage responsible spending habits, encouraging financial discipline among cardholders.

 

Credit Limit Flexibility: The credit limit is often determined by the amount of the security deposit, providing flexibility based on individual financial capabilities.

 

Upgrade Opportunities: With responsible credit behaviour, secured cardholders may become eligible for upgrades to regular, unsecured credit cards.

 

How to Get a Secured Credit Card?

Obtaining a secured credit card in India is a very convenient process. Basically, applicants need to provide proof of identity, address, and income. The application involves submitting the required documents along with the security deposit. Once approved, users receive their secured credit card, ready to embark on their credit-building journey.

 

Conclusion

Secured credit cards in India serve as a reliable stepping stone for individuals looking to boost their creditworthiness. The benefits, ranging from credit building to financial discipline, make these cards a prudent choice. As you undergo the world of credit, consider the options available, choose a secured card that fit with your needs, and embark on a journey towards a stronger and healthier credit profile. Building credit safely is not just a financial task; it’s an investment in a more secure financial future.

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