The Best Secured Credit Cards for Improving Credit

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Credit cards are exceptional at helping people deal with their purchases. With discounts and EMI features, the loan becomes easier for the customer to repay. However, you would need a good credit score to get a credit card approved. 

A good credit score is possible only with a good track record in loan repayment. If you do not have a credit history, you could go for a secured credit card. Nevertheless, you will need a security deposit so that you can procure a credit card. This deposit you make vouches for your creditworthiness before the lender.

Once you get the application approved, you can use your credit card for shopping, loans, cash advancement, and balance transfer, among other things. Increasing the credit limit on these cards typically involves increasing the security deposit, and improving your credit score by making your payments on time.

List of the Best Secured Cards

Here is a list of the best-secured cards that you can apply for today.

Bajaj Finserv RBL Bank SuperCard: Bajaj Finserv RBL Bank Freedom SuperCard works as a secured credit card. To obtain this card, you will need to create a fixed deposit of a minimum of Rs. 15,000. Once you are done with this process, you are eligible for the credit card. The credit limit on the secured credit card will be 100% of the fixed deposit amount. Additionally, you will also earn a 6.85% interest on your deposit. An increase in funds would mean that your credit limit increases automatically. If you need to use the cash withdrawal facility, you shall be allowed 75% of the total deposit amount in cash. To top it off, the card will entitle you to great discounts on shopping, fuel purchase, and premium airport lounge access.

Axis Bank Insta Easy Credit Card: To get this card approved, you will need to create a fixed deposit of Rs. 25,000 with the bank. The good news is that there is no annual fee for the card. Your credit limit will be a flat 80% of your deposit amount. Furthermore, this card gets you 15% off at partner restaurants. You do not have to worry about your purchases, as the card allows you to convert any purchase above Rs. 2500 into EMIs. A fuel surcharge waiver of 1% is the icing on the cake, especially keeping in mind the recent fuel price hike.

SBI Unnati Credit Card: This credit card is a great place to start because there is no annual fee for the card for the first 4 years. From the fifth year, a nominal fee of Rs. 499 is charged but is waived off on making annual purchases worth Rs. 50,000. The card works best as a balance transfer credit card, as the interest rates are as low as 0.5% for the first three months, post which 0.75% is charged. Thus, repayment is made easy so that you can improve your credit score and increase your credit limit. On all purchases, you get 20-50 days of the interest-free period, which makes the deal even sweeter.

ICICI Bank Instant Platinum Credit Card: For this credit card, you will need to create a fixed deposit of Rs. 20,000, although no annual fee needs to be paid. This card works best as a lifestyle card, as it can fetch you goodies like a flat Rs. 100 off on two movie tickets monthly. You get 3 reward points on every Rs. 100 spent using this card, and a flat 15% off on food from a selection of 2,600 restaurants.

Things to Remember

A secured credit card is much like a normal credit card, but the collateral must be managed carefully. It works as a signifier of your credibility, and thus you cannot withdraw it at will. The minimum tenure of the fixed deposit varies according to bank policies, so do your calculations properly while you apply for the card.