Credit Card Tips: Banks are not giving credit cards due to poor Cibil scores? This Jugaad will help..

The trend of credit cards has increased rapidly in today's time. When you do not have money in your pocket and you need to make a purchase, then you can spend the amount as a loan from the credit card and repay it without interest within the grace period. Although credit cards are very easily available these days. But if your CIBIL score is in the red mark, then the banks do not consider you trustworthy and in such a situation they can refuse to give you a credit card.

If your CIBIL score is also bad or in minus and due to this reason you are not able to get a credit card, then do not worry. In this situation, you can apply for a Secured Credit Card. Banks will approve your application immediately. Know what is a secured credit card and what are its benefits.

What is a secured credit card?
As the name of the secured credit card itself suggests, it is a card that is given in exchange for a collateral deposit. This card is given in exchange for a fixed deposit, which means that it is necessary to have your FD in the bank to get this card. The limit of most secured cards is kept up to 85% of the FD. As long as the customer's FD remains in the bank, the card user can use this credit card.

But if the payment of the credit card bill is not made by the secured credit card user by the stipulated time for any reason, then the bank has the right to recover its debt by encashing its fixed deposit account. A secured credit card is a better option for those people whose credit card request is rejected by the bank for any reason.

Benefits of a Secured Credit Card
A secured credit card does not offer discounts, offers, rewards, etc. like regular credit cards, but still, it is very beneficial in many ways. Know the benefits of a secured credit card here-

- By making timely bill payments, you can improve your credit score through this. This card helps in generating credit history. Due to this, the possibility of a loan or credit card in the future can be improved.

- The limit of the card depends on the amount of your FD. The higher the FD amount, the better will be the limit of the card.

- Its interest rates are lower than regular credit cards because it is given in exchange for FD. The annual maintenance charge for secured cards is also less.

- It is easy to get approval as it is available in exchange for a collateral deposit. A bad credit score does not make any difference to it. For this, you do not have to provide proof of annual income.

- By taking a credit card against FD, the cardholder gets the option of increasing his credit limit without any extra cost along with getting interest on the fixed deposit account.

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