Secured Card

Definition of Secured Card

Secured card is nothing but a credit card which is linked to any kind of savings account and is used mainly as something collateral on available credit with that card. With the card backing the money is either held or deposited in the respective account. The account will already deposited money and the credit history are what the limit is based on. The limit being the deposit’s percent varies from fifty percent to hundred percent.

Why Secured Card is needed?

It not only helps in building any credit but also helps in application of any kind of credit cards of regular types in future. Also it helps any person to once again build his or her credit score who had a poor score regarding credit or a not so good history of credit. Banks are often seen increasing the limit of the credits of an individual where the repayment behaviour is good and also where there is no collateral additional deposits. This increase in the credit limit also helps in the increase of the overall score of the credit.

Obligation of the Secured Card

Collateral money deposition is essential otherwise the bank will be at risk. This money is used as compensation by the bank in case of any kind of loss of money when the dues are not cleared by the individuals.

How to apply?

It is one of the fastest and easiest ways to apply for these Secured credit cards as no additional inquiry is required for these by the banks. What is checked is only the credit score. Formalities such as documentation, deposition of the collateral money and some other few requirements are to be done in the process of the application.Some important factors