The practice of credit cards has increased a lot today. But most people do not know whether their credit card is safe or unsecured. But it is important to be aware of it. Most of us who use credit cards are unsecured. Banks also offer only unsecured credit cards to customers.
However, people who have started a new job or earning can hardly get this card.
Secured Credit Card
Secured credit cards are those cards that are issued by holding a fixed deposit as security, which is controlled by the bank. This is a kind of guarantee. If you default, the bank can forfeit your FD.
People who have no credit history or very little credit history are given secure credit cards. Banks usually avoid giving such cards because they are quite risky.
Which credit card is correct
Secured credit cards are suitable for those who have no credit history and who want to improve their credit history.
However, on some kind of default, what you have guaranteed can be confiscated. If your credit score is good then unsecured credit card is good for you. By the way, banks rarely offer secured credit cards.
Nidhi Malviya is fun loving girl. She writes at NoobFeeds about various topics related to Finance, Technology, Business etc.