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Want to convert Unsecured Credit card to Secured Credit card
- Thread starter TiVoGlObE
- Start date
the_collector
TF Premier
I've never seen anybody want to convert their unsecured card to a secured one. Why would one possibly want to do that?
The secured card will also get reported as a CC only a cibil and won't make a difference to the credit mix.
Only a loan would.
The secured card will also get reported as a CC only a cibil and won't make a difference to the credit mix.
Only a loan would.
the_collector
TF Premier
You're better off getting a new secured card such as idfc wow with a lower fd amount instead of converting your existing one to fd.
Imagine creating a 2.1L FD to convert your exisring unsecured axis card to secured just so that you can get a better credit mix😅
Any bank will love a customer like you😂
Imagine creating a 2.1L FD to convert your exisring unsecured axis card to secured just so that you can get a better credit mix😅
Any bank will love a customer like you😂
Why do you feel so?
Because he must have seen this comment on his profile of cibil on the particular app
He wants to convert unsecured into secured
But point is not that
One score always will give you advice without any undue reason no matter how good your score or how perfect your profile is.
Is there is nothing they will say
Address mismatch due even though only one address is there in all loans and cc ..
shrewdoc
TF Legend
It's better to self-evaluate your score based on Scoring Parameters provided in reports generated from the bureaus directly.
OneScore recommendations are baseless in current period tbh when every bureau is updating their scoring systems and integrating AI which is a huge variable in itself. Moreover, it's predicted score for upcoming month is just BS! 😆
Downloadable Reports with Scoring Factors:
- Experian provides reports SOS.
- Equifax official site provides Quarterly (I think)
- CRIF can be generated through Moneycontrol monthly.
TiVoGlObE
TF Select
Your imagination is worse than my idea 😂
Who told you I'm creating 2.1L FD? 😂😂😂😂
TiVoGlObE
TF Select
All credit cards are loans, albeit unsecured ones if not backed by FD.
Also, Credit mix is the only parameter I see lacking below Excellent at either poor, fair, or good depending on where I fetch the data.
TiVoGlObE
TF Select
Don't use once score, credit, Gpay, Airtel app, & Paisa bazaar
TiVoGlObE
TF Select
Not true at all, there was a credit card generated on my Pan, with a bogus address once. Never got delivered & hence no activation or credit history added. Remained hidden without any trace of it for a long time.
Used to wonder why even students get Amazon pay card but I used to have any & every ICICI application rejected without a cause, didn't bother much to investigate.
One day I checked this address mismatch under "derogatory comments" issued a CIBIL report & that's when I got to know of this hidden credit Cards existence. Reached out to ICICI Pno & had the card permanently cancelled (was soft cancelled for 4 years) & made them remove this incorrect address entry off CIBIL records.
So yeah no everything you can't understand is bogus. There may be underlying issues you need to investigate
TiVoGlObE
TF Select
Bhai sahi me soch rha hu 😂
Vaise toh secure card yu hi mil jaye minimum 10K lagega FD karke card lene but that's beside the point. I already have 6-7 cards don't need any more.
Airtel axis is least used, so the most minimum FD of 20K (as per axis 20K min FD & 16K limit for secured card mandatory) should work fine for me.
Reason for doing this is, every app i check, irrespective of if it's highmark, experian or CIBIL based, credit mix is the lowest/poor etc.
I have a total spend of 20L over last 2 years through CC but never ever had a single emi transaction or home loan or auto loan etc. nothing apart from unsecured credits against me.
Easiest to move is getting a secured cc. Bit out of the box thinking is convertion of existing one.
doraemon
TF Legend
Yeah I too got that
Most of people aware of credit cards are running behind those credit score
Secured card can be taken with min 5k fd from kotak or various banks
Almost every bank has secured cc option
TiVoGlObE
TF Select
That's the plan of all else fails. Evident from here, nobody seems to have thought of this so far, which is suprising since I have seen these forums to have some great minds creating all kinds of new thoughts & idea on credit cards & score improvement etc. 🤷
I was thinking of kotak but I think RBI just banned them from issuing new Credits. So maybe koi SFB with good FD rates try karunga.
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the_collector
TF Premier
But to your point. 95% of secured credit cards get listed as a loan/credit card on cibil.
The point of it being " secured" is for them to use it as a lien amount. Where if you default they can you use that to pay off the debt.
So I still don't see how that is going to " improve " your credit mix.
TiVoGlObE
TF Select
The entire point of Credit scores is, to assess how good your credit responsibility or loan repayment patterns are. Every credit card taken is a loan in itself. The card is just an instrument.
The point I want to make is, there is no loan/credit card - a credit card itself is a loan
The actual difference of all credit instruments is in the 'type' of loan taken -
Credit cards, Emi against purchases, personal loan etc are categorised as unsecured. I.e. no collateral.
Home loan, auto loan, FD backed credit card, loan against gold or other asset etc have a collateral & hence is a secured loan. This kind of loans are highly valued by agency & banks.
You may have years of history using credit card with high limits yet you may find anybody here with a home loan having equal or better CIBIL in short duration. This is the difference a secured loan makes to the portfolio.
Now from what I understand, the credit mix part can be partially improved if we get into different kinds of unsecured credits too, like few credit cards, then a personal loan or some purchases on EMI. But more brute force help theoretically should be getting secured loans, cheapest & easiest of them being a secured credit card.
Idk if I was able to explain it with conviction, I may be wrong in my understanding so far too, these are basis my learnings over last 2 years.
the_collector
TF Premier
I understood what you were trying to say.
Home loans and car loans work differently.
For a secured credit card, the bank just mentions it as unsecured or there is nothing specified there.
It works the exact same as you would take an unsecured one. The only difference is the amount you have locked with the bank can be used to repay it in case you default.
Which brings me back to what you're trying to do. A secured credit card will not improve the credit mix as you're just adding another credit card and it is not treated differently as a home loan is.
TiVoGlObE
TF Select
I don't think that's true, a Secured credit card should/will not be mentioned as unsecured & if ever it did, a dispute needs to be raised to fix it, a quick check here confirms this.
the_collector
TF Premier
If you have an unsecured card can you share a ss of it on cibil?
I had onecard secured and basing it purely of that
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