Credit card: Everyone wants to have a credit card, but everyone’s credit profile is different. Here we are telling which card will be better.
Credit Card: Most of us have this information about credit cards that if you do not currently have money, you can shop using credit cards, or pay bills.
However, few people know that there are two types of credit cards.
First, unsecured credit card and second, secured credit card. There is a big difference between these two types of credit cards.
Here we are giving information about the advantages and disadvantages of these two types of credit cards and are telling which credit card you should take.
Credit cards are increasing every year in India
There has been a big increase in the use of credit cards in India in the last few years. However, banks do not offer credit cards to everyone.
On the other hand, banks are also in a mode of vigilance due to dwindling earnings and termination of jobs during the Kovid era and are not issuing credit cards to everyone.
Recent data from the Reserve Bank of India (RBI) shows that 5.49 lakh new credit cards have been issued in India in February.
However, it is 47 percent less than the same period last year, while it has declined by 22 percent compared to January this year.
Due to Kovid and restrictions, they have declined.
According to reports, a total of 6.16 crore credit cards exist in the country in February this year. Whereas at the end of December 2020, this figure was 6.03 crores.
In the era of Kovid, however, banks are more cautious than before and are careful in distributing cards.
This is because the income of the people is not fixed and the risk of jobs and earnings has increased.
Unsecured credit card
In this category, there are good credit history and good customers of the bank. Banks offer these credit cards to them.
Banks do not offer unsecured credit cards to everyone. For example, people who do not have any credit history do not get these credit cards.
If you have a tight earning and have a good credit history and credit score, then taking an unsecured credit card is a good option for you.
Secured credit card
These are credit cards that do not usually require any credit history. In this, you have to keep a colletral. Banks usually issue such credit cards easily in exchange for your Fixed Deposit (FD).
If your income is not sure, or you do not have any proof of showing your income, then these unsecured credit cards are better for you. These are also beneficial for people who do not have a credit score and may have to take home loan or vehicle loan in the coming time. For this, banks demand your credit score.
In such a situation, you can prepare your credit history through a secured credit card.
The important thing is that for this credit card you have to keep some with the collateral bank. This is usually a bank FD.
You get a credit card with a credit limit of 80-90 percent of the bank FD.
However, the disadvantage of such a credit card is that your FD gets linked with this credit card. And you cannot redeem your FD in between. No matter how much you need it.
