Secured credit card
A credit card given against your own fixed deposit, which the bank holds as security; easy to get with no credit history.
A secured credit card is given against your own fixed deposit, which the bank keeps as security. Because the deposit covers the risk, the card is easy to get even with no credit history, and it reports to the credit bureaus like any card, so it builds your credit score. The limit is usually close to the deposit amount.
Questions people ask
What is a secured credit card?
A credit card issued against your own fixed deposit. The bank holds the deposit as security, so it can give the card even if you have no credit history. The spending limit is usually close to the deposit amount.
Does a secured credit card build credit score?
Yes. It reports to the credit bureaus like any other card, so using it and paying the bill in full builds your credit history and score over time.
Who should consider a secured credit card?
People with no credit history, such as first-time earners, or anyone who was refused a regular card. Because the deposit is the security, approval is easy and the risk to the bank is low.
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