Having a high credit score is important if you want to get a loan or a credit card. But to start building a credit score or to improve your existing low score, you need a credit card or a loan against your name and a good repayment history will do the job.
But the catch is, if you do not have a score or have a low score - most banks will not give you a card or a loan! So, how exactly does one build a credit score from scratch or improve an existing low score?
Get a secured credit card! This is an assured card with no credit score check. Wondering why? Read on…
A secured credit card is a card which is backed by the money you invest in a collateral supporting it, usually an FD with the issuing bank. This credit card works just like any other credit card but since it’s backed by an FD, the scope of risk is less for the lender and hence, as soon as you create the FD, the card is yours! Without any credit score check. So not only do you get a credit card for sure, but you also earn interest on your FD while you are using the card and you also start/building improving your credit score!
Your money is safe in these FDs since they are with RBI approved banks. The amount of FD depends on the issuing bank, however most give a lot of options. And don’t worry, your card bills are not adjusted against the money you have invested in the FD unless you don’t pay up for 3 months. So, just like any other credit card, make sure you spend less than 30% of your credit limit and pay in full every month and very soon you will begin to build/improve your credit score.
To conclude, whatever be your score or even if you do not have a score yet, you will get a secured credit card for sure! Using this credit card is one of the easiest ways to build or improve your credit score. And to get one, all you need to do is apply and complete your application by creating an FD!
At OneCard, we have recently launched a secured card - OneCard Lite. We would love to have you become a part of our OneCard family! Click here to download the app and apply for this awesome assured card - OneCard Lite!
Remember, as soon as you create your FD, the card is yours.
Also read: Unsecured vs Secured Credit Cards