What do you mean by a ‘secured credit card’?
Secured credit cards are another very popular type of credit cards. Secured credit cards, as their name suggests, are secured. Well, they are secured for the credit card supplier, really. Secured credit cards you need an account with the credit card suppliers create and maintain some cash balance in that account. This cash is used as security for the supplier of secured credit card. Your credit limit is the amount you hold in your account that you have backed up started with the supplier credit, depending. This is usually between 50 to 100% of account balance. So in this sense, secured credit cards do not really (credit cards because they do not offer you any credit really). For this reason, the secured credit cards are sometimes referred to as debit cards.
Why is the concept of secured credit cards is so important?
As we know, the credit card debt is a raging problem which is caused by improper use of credit cards. Those people at the end spoil their credit rating to an extent where they can get any other unsecured credit card (which is what we are) the major credit card call. Even after they have paid their contributions and acknowledged their guilt, their credit rating still haunts them forever. For such people, secured credit cards are a blessing. Secured credit cards present them the opportunity to not only secured credit cards in the first place, but also their creditworthiness by improving the credit card in a disciplined way (paying their dues check in time, the expenditure is to use a maximum of 70 % credit limit etc etc). As they continue with these good habits, their credit rating improves gradually over a longer period. Therefore, secured credit cards offer them the means to correct the error (rating).
It is not just people with bad credit rating who go for secure credit cards. Some people go for secure credit cards, because they do not want them to take care of the bills for credit cards and so on. They will not even fill up application forms for unsecured credit cards.
Then there are some who just (not like to borrow money even if it means, based on a credit card provider by) their credit card. However, such people are found very rarely.
Some people go for secured credit cards because they have heard a lot of frightening stories on credit card debt - maybe someone from their family or their friends was devastated by credit card debt and they do not want to repeat the mistake. So they decide to go for a secured credit card.
Whatever the reason for going for it to be safely secured credit cards popular.