Features of a Secured Credit Card

What are the features of a secured credit card? - Northstar

A secured credit card is a powerful financial tool, especially for those looking to build or rebuild their credit scores. Be it all the miscellaneous expenses of the month, overhead expenses or emergencies, a credit card can come in handy and save the day. This type of credit card is backed by a cash deposit, which serves as collateral and sets the card’s credit limit.

Secured credit cards work similarly to regular credit cards. You can make purchases up to your credit limit, make monthly payments, and incur interest if you carry a balance. However, if you default on your payments, the card issuer can take the deposit.

Here’s a look at the essential features of secured credit cards:

Credit Building: Secured credit cards report to the credit bureaus, allowing you to build a credit history. Regular, responsible use can improve your credit score over time.

Secured by Deposit: The deposit you make when opening the account is typically equivalent to your credit limit. 

Potential for Upgrade: With consistent, responsible use, some issuers may upgrade your secured card to an unsecured one, returning your deposit.

May Carry Annual Fees: Some secured cards carry annual fees, so it’s essential to understand the cost before applying.

Applying for a secured credit card involves similar steps to a regular card. You need to meet the eligibility criteria, provide necessary documents, and make the security deposit. 

Remember, when applying for a secured credit card:

Check the issuer reports to credit bureaus: To build credit, ensure the card issuer reports your payment history to the credit bureaus.

Understand the fees: Be aware of all associated fees and ensure they are manageable.

Plan to upgrade: Look for a card that offers the possibility to upgrade to an unsecured card.

One of the tools that may come in handy while managing your secured credit card is the Axis Bank Credit Card EMI Calculator. This calculator helps you determine the monthly instalments if you convert your outstanding balance to EMIs, aiding in better financial planning.

For those seeking a seamless process for credit card approval, the Airtel Thanks App is an excellent solution. 

Here’s how you can apply:

  • Download the Airtel Thanks App through PlayStore or App Store.
  • Go to the ‘shop’ category, then choose ‘credit card’ under ‘Financial Services’.
  • Fill the form and provide information for KYC.
  • Get your credit card delivered within 24 hours of your approval.

The Airtel credit card comes with a higher credit limit, substantial annual savings, low joining fees, and minimal annual fees. Its 100% digital process ensures a hassle-free experience. Additionally, it offers cashback offers, airport lounge access, fuel surcharge waiver, 10% off on food and grocery deliveries, and 25% off on recharges done from the Airtel Thanks App.

In conclusion, a secured credit card is a practical tool for those looking to build credit. By understanding its features, you can utilise it to your advantage and set a strong financial foundation. Remember to handle your credit card responsibly, make payments on time, and keep your balance low to reap the maximum benefits.

Leave a Reply