Secured or Unsecured Credit Card: Which One to Choose?

Are you familiar with credit cards? If you are an active user of these cards, you already know about them and the benefits of using credit cards. We are not going to talk about those basics in this blog. Our aim is to find differences between a secured and an unsecured credit card, the benefits of using these cards, and tips that might help.

Those who haven’t used any credit card ever will get all the necessary information here. Once you finish this blog, you will eventually understand all the credit cards available in the Indian market and choose the right one.

Although similar to taking loans, operations involved in credit cards are rather different. If you want to have a specific loan in India, we recommend you talk to a home loan agent. He will be the right person to guide you through the diverse section of home loans and get the best one.

Definition of a Secured Credit Card

Similar to secured loans in India, secured credit cards are connected with a security. This means you have to make a deposit to get this card. People who can’t afford to have a credit card due to low credit scores can easily have these cards without much obligation.

With time, once you start repaying your debts, your credit score will improve, and you can then apply for the unsecured ones as well. If you look at the effectiveness, secured credit cards are no less than conventional cards.

Important Aspects Regarding Secured Credit Cards

Before applying for a secured credit card, keep the following items in mind-

  1. For these cards, the credit limit is dependent on your bank deposit. The more you will deposit, the more limit you will get.
  2. As you don’t have a good credit history so far, it is not advisable to miss any payment of your credit card bills.
  3. Use your credit card carefully. Avoid making unnecessary spending. Try to be disciplined, and in no time, your credit rating will go up.
  4. Any person over eighteen years of age can apply for these credit cards.

We hope you will benefit from having this information. You can consult with an agent for more information.

What about Unsecured Credit Cards?

Most credit cards are popular in India but are unsecured. We don’t need to submit any security to have these cards. Having a good credit score is important for getting these credit cards. If you have a low CIBIL score, try to improve that and then apply for the card. Look for experts who can guide you about loans and credit cards.

Difference Between Both Credit Card Options

There are some major differences between these credit card varieties. Let’s talk a few about them-

  1. Unlike secured credit cards, you don’t need to have a safety deposit for unsecured credit cards.
  2. Those who don’t have a good credit score can get secured credit cards, but having unsecured credit cards is quite difficult for them.
  3. If we compare the interest rates charged on each card, we will find that the interest rate for unsecured cards is much higher than that of secured credit cards.

Look for some of the popular credit card options and get one to learn more about these cards and the benefits they offer.

Application Process

In India, you need to apply for a credit card to get one. The following steps will help you in that process-

  1. Finalize the company whom you will choose as your lender.
  2. Now, the online application process has made the complete process fast and effective.
  3. Fill in all the details and attach your income certificate with the application form.
  4. There are documents that you have to submit with the application. ID proof and address information are some of the important ones.

It will take some time on their end to approve your application. Be patient during that time.

Which One Should You Choose?

It’s time to take the final call. Which credit card option is better? Both secured and unsecured loans have their merits and demerits. Those who can’t afford to have a regular credit card don’t have much choice. Others should go for unsecured credit cards.

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