7 features to know about secured credit cards
As secured credit cards are issued against collateral in the form of fixed deposits, it reduces the credit risk of banks. In case a credit card holder fails to repay his card bill, the bank has the liberty to liquidate fixed deposits to recover outstanding dues
Banks offer secured credit cards against fixed deposits as collateral. These cards are usually aimed at those who cannot avail regular credit cards due to reasons like low or no credit score, unserviceable location, inadequate income, job profile or employer’s profile.