Latest News

You can improve your CIBIL score with Secured Credit Card, Know how


➡️ Click here to join our Whatsapp Group

If you have a low CIBIL credit score and want to improve it, you can consider using a secured credit card. First of all, let’s understand what is a secured credit card.

What is a Secured Credit Card?

A secured credit card is a type of credit card that requires a cash deposit from the cardholder, which serves as collateral for the card issuer in case the cardholder is unable to make payments. The deposit amount becomes the credit limit for the cardholder. Secured credit cards are often issued to subprime borrowers or those with poor or limited credit histories. These cards can help borrowers improve their credit score as the card issuer reports the payment history to credit reporting agencies.

Here’s how a secured credit card can help improve your CIBIL credit score:

  1. Secured Credit Card Against Fixed Deposit: A secured credit card is offered against a fixed deposit. This means that you need to deposit a certain amount of money as collateral with the bank in order to get the credit card.
  2. Building Credit Credibility: By using a secured credit card responsibly, you can demonstrate financial discipline and improve your credit credibility. Making timely repayments and maintaining a good credit utilization ratio can positively impact your credit score.
  3. Increasing Credit Limit: If you already have a fixed deposit with a bank, opting for a secured credit card can help you increase your credit limit while receiving interest on your fixed deposit.
  4. Timely Repayments: Making consistent and timely repayments on your secured credit card is crucial for improving your credit score. This shows lenders that you are responsible and can be trusted with credit.

It’s important to note that improving your credit score takes time and patience. It is a gradual process, and you need to practice good credit habits consistently. Additionally, it’s advisable to maintain a healthy mix of secured and unsecured credit, make all your payments on time, and keep your credit utilization ratio low.

Remember, each individual’s credit situation is unique, so it’s always a good idea to consult with a financial advisor or credit counselor for personalized guidance.

Leave a Reply

Your email address will not be published. Required fields are marked *

Home
Calculators
Menu
Search