A Secured Credit Card Is Only Issued
A secured credit card is given with a money collateral deposit that becomes the credit line for the account. One of the most significant gauges of a secured credit card is that it is issued only opposite a stable deposit with any bank of a financial corporation. The secured credit card is given to a person who is unable to have a normal card and has a fixed deposit account in the related bank.
These cards are secured since the bank has the right to close out the fixed deposit account to save debts, in case there is a problem on payments. The card owner can’t shut the fixed deposit account until the secured card is in his/her possession. Normally a bank presents a maximum cap of 85 percent against the fixed deposit. Those cards run similar to the normal credit card and interest can also be gained on the fixed deposit. Apart from the constant section, such a card runs completely like a standard credit card and you continue earning interest on the fixed deposit.
Now in India, certain private sector banks such as ICICI Bank, Axis Bank, Kotak Mahindra Bank, and some public sector banks namely State Bank of India (SBI), Central bank of India, Syndicate Bank, supply the option to avail secured credit cards against fixed deposit accounts. In general, banks supply credit cards with a cap of anywhere between 80 -100 percent of the exact value of the fixed deposit.