Secured credit card

What do you mean by a ‘secured credit score card’?

Secured credit charge playing cards are another very popular breed of credit charge playing cards. Properly secured credit charge playing cards, as their name suggests, are secured. Well, they are secured for the bank card supplier, really. Properly secured credit charge playing cards require you to open an account with the bank card supplier and maintain some cash balance in that account. This cash balance acts as a security for the supplier of secured bank card. Your borrowing limit is dependent on the amount you hold in the account that you have started with the supplier of secured bank card. This is generally between 50 to 100% of your account balance. So in that sense, secured credit charge playing cards are not really credit charge playing cards (since they don’t offer you any credit score really). For this reason, the secured credit charge playing cards are sometimes also referred as an atm card.

Why is the concept of secured credit charge playing cards so important?

As we know, financial debt is a raging problem which is caused by improper usage of credit charge playing cards. Such people end up spoiling their credit score score to an extent where they cannot get another bank card (that is what we call the commonly used credit score cards). Even after they have paid off their dues and cleared their debt, their credit score score still haunts them. For such people, secured credit charge playing cards are a boon. Properly secured credit charge playing cards present them with an opportunity to not only get a bank card in the first place but also to improve their credit score score by using the secured bank card in a disciplined way (paying their dues in time, controlled spending, utilizing a maximum of 70% borrowing limit etc etc). As they continue with these good habits, their credit score score gradually improves over a period of time. Hence secured credit charge playing cards provide them with the means of rectifying their mistakes (credit rating).

It’s not just the people with poor credit score score who go for secured credit charge playing cards. Some people go for secured credit charge playing cards because they don’t want to bother themselves with the bills etc for credit charge playing cards. They don’t like to even fill-up application forms for unsecured credit charge playing cards.

Then there are some who just don’t like to borrow money (even if it means borrowing from a bank card supplier by using their credit score card). However, such people are very rare to find.

Some people just go for secured credit charge playing cards because they have heard a lot of horrifying stories on financial debt – maybe someone from their family or one of their friends was devastated by financial debt and they don’t want to repeat the mistake. So they decide to go for a secured bank card.

Whatever be the reason for going for it, the secured credit charge playing cards are surely popular too.