What is a Secured Credit Card? Learn Its Key Features and Benefits
Zee Business Video Team | Updated: November 29, 2024 07:30 PM IST
A secured credit card is a financial tool offered against a fixed deposit. One of its main benefits is the relaxed eligibility criteria. Unlike regular credit cards, secured cards don't place as much emphasis on factors like credit score, income, or employment during the application process. This is because the fixed deposit serves as collateral, reducing the risk for the issuer. If you fail to repay your balance, the issuer can liquidate the fixed deposit to recover the dues, minimising their risk.
