Santa Claus comes around just once a year. In the meantime, there are Credit Cards.
  • What is a Secured Credit Card?

    A secured credit card is a card which is backed by a payment which is used as collateral. A secured credit card is usually offered to the people who do not have a credit history or have a limited credit history by still require a credit card.

    Banks provide these secured credit cards to their customers to help them build their credit profile. The credit card is issued only after a certain amount is paid to the bank and that amount usually acts as the credit limit of the card.

    Difference between a secured credit card and prepaid credit card

    The major difference between a secured credit card and a prepaid credit card is the credit history of the customer.

    A secured credit card is given to a customer who have a limited credit history or none and is usually given to build up their creditworthiness. The bank has a secured card to a customer in exchange for a certain amount of money to deposit as collateral. This deposit which is made becomes the credit limit of the provided card. The credit limit can be increased by adding sufficient funds to the account or if you have a good repayment history, the bank will add a certain amount to your monthly limit.

    On the other hand, a prepaid credit card has no collateral involved. As the name suggests, it is prepaid and comes with a credit limit provided by the bank depending on a number of factors. These factors are the credit report of the customer, the credit score, and payment records which showcase the ability or inability of the customer to repay the amount spent.

    If you do not have sufficient credit, a secured credit card is the safest option as they do not charge high rates of interest like an unsecured credit card and do not have a high annual or joining fee.

    However, for an unsecured credit card, it is advised to keep your expenses on the low and pay it back in full at the end of the month. The credit utilization ratio must be between 10%-20% at the most. Having a secured credit card means to spend wisely and not more than you can pay off.

    Applying for a Secured Credit Card

    Applying for a secured credit card is not any different than applying for an unsecured one. It is a fast and simple process as most major banks just check your credit score and do not conduct any other inquiries on your credit history or report.

    Even though it is a simple process, there are few things which must be kept in mind before applying for a secured credit card.

    Credit Limit:

    It is very important to make sure that you do not go overboard with your credit limit. It is advised to start with a lower credit limit and then increase it only when you will be able to pay it off in full at the end of the month. If you deposit a large sum of money, it does not mean that you should spend it all. Banks will have a constant check on your spending habits, so if you have a good repayment history, banks can allocate a certain amount of money to your credit card without you making any kind of deposit.

    Eligibility:

    Every bank has its own eligibility criteria when it comes to a secured credit card. While some banks require a minimum deposit required for the card, other banks need you to open an FD in the bank and that amount in the fixed deposit serves as the collateral required by the bank in case you are not able to pay your dues.

    Benefits:

    It is important to conduct thorough research on the types of secured credit cards and the ones which offer you the most benefits. Secured credit cards offer you a wide range of discounts and offers just like an unsecured card.

    Features and Benefits of Secured Credit Cards

    Secured credit cards have a number of benefits and features surrounding them and are mainly for the people who do not have enough credit history required for an unsecured or prepaid credit card.

    Some of the features of a secured credit card are:

    • The applicants are not required to provide additional inquiries of their credit history.
    • The process of approval is fast as the banks are risk-free since the individuals are offered the cards on the back of a deposit serving as collateral.
    • There are some banks which offer interest on the security deposit. This helps the applicants of secured credit cards to earn interest on their deposit along with the benefits.
    • Some secured credit cards come with a grace period. This helps individuals to get a few days more to make their payments, in case of any delay.

    Top Secured Credit Cards Available in the Market

    SBI Advantage Plus Card

    This Advantage Plus Card is among the best secured credit cards in the market. This card offers much more benefits than a regular credit card and can be used both nationally and internationally. The card offers a credit limit up to 85% of the amount deposited in the FD account.

    Features of SBI Advantage Plus Card
    • Extended credit allows the cardholders to pay the minimum amount and carry forward the remaining amount at the low interest of 2.25% per month.
    • The cash withdrawal limit is up to 100% of the credit limit.
    • Comes with ‘Easy Money’ facility. This enables cardholders to get a demand draft or cheque delivered to their registered address.
    • Cardholders can transfer credit from other credit cards at a nominal processing fee.
    • Individuals with this card become automatically eligible for an Encash facility of either Rs. 25,000 or Rs, 50,000. A Fixed Deposit is opened in their name with they are billed Rs. 2,500 or Rs. 5,000 as EMI for 11 months.
    Benefits of SBI Advantage Plus Card:
    • Can be used at more than 1 million Visa or MasterCard ATMs globally.
    • Transactions can be converted into EMIs using the Flexipay option.
    • Interest is provided on the fixed deposit after 555 days.
    • Benefits of supplementary credit cards.

    ICICI Bank Coral Credit Card

    This card offered by ICICI bank offers credit limit up to 85% of the fixed deposit. For an individual to avail the card, you will need to have Rs. 20,000 in his/her fixed deposit account for a period of 180 days.

    Features of ICICI Bank Coral Credit Card:
    • Only ID proof required to avail this credit card.
    • A welcome benefit worth Rs. 999 from Provogue is given.
    • The reward points earned can be converted into gift vouchers and cash.
    • Ensures secure transactions with an embedded microchip.
    Benefits of ICICI Bank Coral Credit Card
    • Joining fee is very low with only Rs. 500.
    • Buy one get one free’ offer can be availed all through the week on movie tickets.
    • Double reward points earned for transactions at supermarkets and dining.
    • Free airport lounge access
    • 15% discount on dining at more than 800 partner restaurants.

    ICICI Bank Instant Platinum Credit Card

    This secured credit card is for those who have a minimum credit requirement. To avail this card, an applicant needs to have a minimum fixed deposit of Rs. 20,000 with the bank.

    Features of Instant Platinum Credit card:
    • No requirement for any ID proof.
    • The interest rate is a mere 2.5% per month on this card.
    • The card has 3 embedded microchips to offer the highest security.
    Benefits of Instant Platinum Credit card:
    • Cash withdrawal up to 100% of the credit limit.
    • Free credit for up to 50 days.
    • Fuel surcharge waiver of 2.5% on all transactions.

    FAQs Related to Secured Credit Card

    1. What is a good secured credit card?
    2. A good secured credit card helps you build credit and contributes highly to your credit score as well. The credit card requires a certain amount of money to be paid as deposit and that deposit is usually considered as the credit limit of your card. Timely repayment of dues results in the building of good credit which can help you apply for a prepaid credit card.

    3. Will a secured card build credit?
    4. A secured credit card is offered by the bank for the sole reason of building credit for the people who do not have enough credit to apply for a prepaid credit card.

    5. Does closing a secured credit card hurt?
    6. Closing any credit card will hurt your credit score. It is always advised to keep a credit card open even if you are not using it. It can always be kept for emergencies. Closing or cancelling a card can reflect poorly on your spending habits. To know more it is advised you get in touch with the bank.

    7. How fast can you build credit with a secured credit card?
    8. Building credit with your secured credit card can only happen if you are spending wisely and not more than you can afford. By having a secured credit card, only the money you put in as deposit will be available to you as a credit limit. However, it is always better to start with smaller purchases which are easy to pay off. If you are increasing your expenditure gradually on a monthly basis, it will help you build your credit score faster.

    9. How long should I keep a secured credit card?
    10. You can keep a secured credit card as long as required. To know more it is advised you get in touch with the representative of the bank.

    11. Do I get my deposit back from a secured credit card?
    12. No, once you have given the money as a deposit to the bank, it is used as collateral for the bank in case you are not able to pay your dues. In most cases, the money as your credit limit comes from the deposit and is subtracted as an when you wish to increase your limit. Once you cancel or close your card, only then the bank will make the calculations and return the remainder of the money, if any.

    13. How can I increase my secured credit card limit?
    14. You can increase your credit limit on your secured credit card by requesting the bank by contacting the customer care of the bank or by visiting the bank branch. The credit limit will be increased depending on the amount you have deposited in the bank as collateral.

      

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    Secured Credit Card Reviews

    • RBL Bank Credit Card
      "Easy to convert for EMI "
      0.5 4.0/5 "Great!"
      I got RBL card offer from BAJAJ Finance. I have been using this card past 10 months which is a life time free card. The credit limit is sufficient of 55K. EMI conversion is avail and I can convert via mobile app whenever required with nominal charge. I use this card for general purpose. Based on usage I get points but not yet redeem it.
      Was this review helpful? 27
      , chennai
      Reviewed on Mar 21, 2020
    • SBI Cards
      SBI Cards Credit Card
      "Good service"
      0.5 4.0/5 "Great!"
      SBI credit card have offers and reward points but I have not redeem them yet, this is a domestic card, the credit limit is of 50000 which I am very much satisfied as per my need. I got my statement on time. I used this card for personal purposes.The card is very user friendly.
      Was this review helpful? 33
      , hyderabad
      Reviewed on Mar 21, 2020
    • SBI Cards Credit Card
      "Ok service"
      0.5 5.0/5 "Blown Away!"
      I am using SBI credit card for more than three months, there are some reward points and offers in the card. I used this card for online shopping, fuel surcharge and groceries.The credit limit of the card is sufficient and I like the most about the card is that it is a life time free card and very good to use.
      Was this review helpful? 26
      , hyderabad
      Reviewed on Mar 21, 2020
    • IndusInd Bank Credit Card
      "Ok service"
      0.5 5.0/5 "Blown Away!"
      The bank agent suggest me to take credit card from INDUSIND and I have taken it because it doesn't have any annual fee. The offer and reward points are available in the card are good. I am satisfied with the limit of the card. I used the card for general purposes. But it will be nice, if the offers and reward points will be more.
      Was this review helpful? 15
      , jaipur
      Reviewed on Mar 21, 2020
    • IndusInd Bank Credit Card
      "Good service"
      0.5 5.0/5 "Blown Away!"
      I am using INDUSIND credit card for 3 months. The card have no offers available and also there is no rewards. The only benefit is that its a life time free card and the credit limit is only for 75000 I am not that satisfied as i expected to get around 1.5 lakh. Apart from the limit over all experience is good.
      Was this review helpful? 17
      , chennai
      Reviewed on Mar 21, 2020
    • IndusInd Bank Credit Card
      "Excellent card"
      0.5 5.0/5 "Blown Away!"
      I have got INDUSIND credit card few months ago and I have used it for two months now ,the credit limit of the card is Rs.70000 which is a life time free card. The bank have informed me every details about the reward points and offers but I have not got any time check it. I am satisfied with their card service.
      Was this review helpful? 19
      , hyderabad
      Reviewed on Mar 21, 2020
    • ICICI Bank Credit Card
      "Good service"
      0.5 5.0/5 "Blown Away!"
      Am having ICICI credit card for two years, I feel good and have not face any issues. The best part about the card is its a life time free card. I used to get my card statement on time. I used this card for shopping, groceries and for many other personal purposes.I am using the bank mobile app which function smooth and simple.
      Was this review helpful? 23
      , faridabad
      Reviewed on Mar 21, 2020
    • SBI Cards Credit Card
      "Good service"
      0.5 5.0/5 "Blown Away!"
      I have used SBI credit card for 2-3 months, but I have not got any time to check about the offers available in the card. The limit of the card is 38000 and I am satisfied because its a life time free card. I used to get my card statement on time and the net banking is also working very well.
      Was this review helpful? 31
      , faridabad
      Reviewed on Mar 21, 2020
    • IndusInd Bank Credit Card
      "Good service "
      0.5 4.0/5 "Great!"
      Since it is a life time free card offer from INDUSIND so I chosen it and applied through online. I received a call on time and they have done the verification process. Hence I received the card by 7 days, the credit limit is okay for me. Its easy to use for all purposes.
      Was this review helpful? 13
      , chennai
      Reviewed on Mar 21, 2020
    • Citibank Credit Card
      "Good "
      0.5 4.0/5 "Great!"
      CITI has provided good offers and benefits on 2 months before. So I chosen this card and applied through online. It is annual fee chargeable of 500 rupees bu there is waiver off option if I spend 30K within a year. The credit limit is 65K. There is EMI conversion avail for this card.
      Was this review helpful? 11
      , coimbatore
      Reviewed on Mar 21, 2020
    • HDFC Bank Credit Card
      "very good"
      0.5 5.0/5 "Blown Away!"
      I have used credit card from HDFC bank for 1 year which is very good and also very comfortable, its a life time free card and lots of offers are available in the card. This card was suggested to me by my colleague. Mobile banking also functions very smooth.
      Was this review helpful? 31
      , bangalore
      Reviewed on Mar 21, 2020
    • IndusInd Bank Credit Card
      "Average service"
      0.5 4.0/5 "Great!"
      INDUSIND bank credit card have an credit limit of of Rs.75000, there is no offers available in the card and it also have a charges of 3000 along with GST. I hardly receive any remainder messages for my bill payment due to that some time I could not pay my bill on time. I would advise them send my bill on time before the due date.
      Was this review helpful? 16
      , bangalore
      Reviewed on Mar 21, 2020
    • ICICI Bank Credit Card
      "Need to increase the credit limit "
      0.5 5.0/5 "Blown Away!"
      I have been using ICICI card for more than one year. They have provided an annual fee chargeable card and waiver off option is applicable. The credit limit is okay of 50K. Since I need to do purchase about 45K on some of the month so this limit is not sufficient. I swipe the card for travel, shopping and fuel purposes. I have not opted for EMI conversion.
      Was this review helpful? 16
      , kolkata
      Reviewed on Mar 21, 2020
    • Axis Bank Credit Card
      "Good card"
      0.5 4.0/5 "Great!"
      I have been using AXIS bank credit card for 3 years, Its a life time free card so I applied the card through bank. The agent have informed me everything about the card. I used to get offers of 10% on petrol bunk and shopping.The limit of the card is Rs.45000 and I used to pay my bill directly through bank.I am also using their net banking which is very good.
      Was this review helpful? 26
      , kolkata
      Reviewed on Mar 21, 2020
    • IndusInd Bank Credit Card
      "Good service"
      0.5 4.0/5 "Great!"
      I got INDUSIND credit card from few months ago.The card have an EMI conversion. I used the card for multi purposes like shopping, online payment, ticket booking. This is annually chargeable card, I am not satisfied with the credit limit of Rs.75000 as I am expecting more than than 1 lakh.
      Was this review helpful? 20
      , kolkata
      Reviewed on Mar 21, 2020
    • IndusInd Bank Credit Card
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      I got a life time free card offer from INDUSIND bank hence applied through online on three months back. I received the call on time and the process was done on smooth. I got the card on exact time frame. The credit limit is sufficient and they provided good offers and benefit as well.I use this card for shopping and travel purpose.
      Was this review helpful? 9
      , kolkata
      Reviewed on Mar 21, 2020
    • RBL Bank Credit Card
      "Average service"
      0.5 1.0/5 "Really Bad"
      RBL credit card is a chargeable card, I always have to go to Bajaj Finance to pay my credit card bill. I am not satisfied with the customer service which has to be improved. I used this card when ever needed for shopping, fuel surcharge and bill payment.The limit of the card is fine.
      Was this review helpful? 44
      , ranchi
      Reviewed on Mar 21, 2020
    • HDFC Bank Credit Card
      "Good service"
      0.5 5.0/5 "Blown Away!"
      HDFC credit card is very convenience to use, I have been using the card for 4.5 months for Shopping, groceries, fuel surcharge and electricity bill payment also. I pay my credit card bill through ATM. I always get my bill on time, this card was suggested to me by the bank agent.
      Was this review helpful? 24
      , ranchi
      Reviewed on Mar 21, 2020
    • RBL Bank Credit Card
      "Okay service "
      0.5 3.0/5 "Satisfactory"
      I used RBL card for twice only. I get message or call for EMI conversion from banker. It is a life time free card. Once all the process done I received the card by 15 days. I am holding this card past 6 months. The credit limit is sufficient of 30K. Once I tried to convert for EMI of 3 months it was done on time without any problem. It is Bajaj card.
      Was this review helpful? 13
      , chennai
      Reviewed on Mar 21, 2020
    • SBI Cards Credit Card
      "Good card"
      0.5 5.0/5 "Blown Away!"
      I have been using SBI credit card for the last two months, the credit limit of the card was satisfied it was Rs.9,80,000. The bank agent came and collect my document he have informed me every detail about the card. The card have a charges of Rs.2299 in a year. I used to pay my credit card bill through bank. Am getting my card statement in softcopy but I wish the bank can send me a hard copy statement also.
      Was this review helpful? 38
      , gurgaon
      Reviewed on Mar 21, 2020
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