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Unsecured Credit Cards For Bad Credit South Africa


(Must Watch) Video by Motiversity: Rich vs Poor Mindset! Unsecured Credit Cards For Bad Credit South Africa?

Can I apply for credit card blacklisted? You're most likely to get a secure credit card as oppose to unsecure in South Africa. Because security is a major factor not only in your marriages, or networks but also in finances.

Blacklisted customers are already considered a high-risk by their financial reputation.

So it makes business sense to require an initial Deposit, because even you wouldn't take chances with someone with a profile like you. Now would you?

What Is The Difference Between An Unsecure Credit Card And A Secure Credit Card?

Is the fact that you either spend your own money (with a service fee), or you spending someone else's money and pay it back later (with interest fees).

The Advantages Of A Secure Credit Card:
  • Is not that it only protects the banks unauthorised transactions, but it also protects the customer against further debt.
  • Online transactional security and convenience for places that strictly requires credit card payment options. Although the secure card requires a deposit, it still functions like any other unsecure card.
Disadvantages Of Secure Credit Cards:
  • The account; is more like a debit account in essence. You need to pay a deposit as a backup, in case you default on monthly payments.
  • Secure Credit Cards: Are financed by the advancement paid by the client. The risk is backed by a deposit from the customer, which reduces the financial risk.
Unsecure Credit Cards:

On the other hand are financed by the bank and you spend money they allocated to your account based on a credit limit. The card issuer or bank carry the risk.

It's simpler to apply: A dedicated income, being over 18 to 21, good credit profile and social security number; easily qualifies new applicants.

Although you get immediate financial relief, it can become a wearisome burden in the future. If for some reason you are unable to pay.

How Does A Secure Credit Card Work?

It requires an upfront fee that gets allocated into a savings bucket, which will either be refunded if you close your account, or will be a recover fund, should you miss payments.

Unlike an unsecure credit cards that relies on funding from the bank/issuer's account..

Although Secured credit card's requires a reserved deposit, which serves as security measure (collateral) to recover the original amount, should you fail to pay your installments.

It also reduces financial depression and worries in the long-run; that heavily indebted folks usually suffers from.

What Is The Easiest Credit Card To Get Approved For?

Again secured cards are the easiest to qualify for, considering that it reduces the financial pressure of the bank/issuer.

Because in one way, or another you're indirectly spending money from your treasury account, or prepaid deposits. Instead of unsecure cards that are using borrowed money.

Who is backing the account and carry's the financial-burden makes the actual difference between the two options. In one case it's the bank in the other it's the account holder.

Examples of these cards are: Discover it® Secured Credit Card or you can go to a branch of your nearest: FNB, Nedbank, ABSA, Capitec, etc.

How Do Secured Credit Cards Help To Build A Good Credit Record?

Of course secure cards helps to build your credit ratings and financial rehabilitation. Assuming that you honor your monthly installments, pay on time and demonstrate your ability to honestly commit.

What makes it even more attractive for blacklisted people hoping to build a better looking financial reputation. Is the fact that it's extremely difficult to qualify for any new credit account.

So this gives you an opportunity to build a cleaner record going forward; while of course clearing your bad name.