Credit cards are great for building your credit score and making cashless transactions. But how do you get a credit card when you have a bad credit history or a poor credit score?
What if we told you, you can get credit cards by depositing a sum of money with your bank?
A credit card that is issued to you against a fixed deposit is also known as a secured credit card. It is the best option for people who have a low credit score or no credit history whatsoever. You can use secured credit cards to build a credit score in such scenarios.
Banks mostly offer credit cards for 75% to 80% of the amount deposited as a fixed deposit. The amount that needs to be deposited and the other criteria vary from bank to bank. If you are searching for a ‘credit card against fixed deposit’, this article will tell you all you need to know.
The ‘best credit card against fixed deposit’ for you will depend on multiple factors. The bank you already have a relationship with will be the best option for you. However, you can also choose a credit card against FD based on the eligibility criteria, deposit amount, fees, charges, etc.
Let us take a look at the options of best credit card against FD in the following banks -
The SBI Unnati Credit Card is a secured card offered by the State Bank of India. Its top features are -
|
Deposit Amount |
Rs.25,000 and above |
|
Annual Fee |
Rs.499 (waived off for the first 4 years) |
|
Application Process |
Offline |
|
Prominent Features and Benefits |
Reward points on spending, fuel surcharge waivers, and contactless payment |
Axis Bank’s credit card against FD is called My Zone Easy Credit Card. Its salient features are mentioned below -
|
Deposit Amount |
Rs.15,000 to Rs.25,000 |
|
Annual Fee |
Rs.500 |
|
Application Process |
Online and offline |
|
Prominent Features and Benefits |
Movie ticket cashback, assured approval, free credit for 50 days, and high cash withdrawals |
First WOW is IDFC First Bank’s credit card that you can get against a fixed deposit. Some of its important features are -
|
Deposit Amount |
Minimum Rs.5,000 |
|
Annual Fee |
Nil |
|
Application Process |
Offline |
|
Prominent Features and Benefits |
Rewards on spending, free credit for 45 days, fuel charges waivers, roadside assistance, personal accident cover, and discounts at restaurants and health/wellness outlets |
Kotak Mahindra’s best credit card against FD is the Dream Different Credit Card. Information related to it is mentioned below -
|
Deposit Amount |
Minimum Rs.5,555 |
|
Annual Fee |
Nil |
|
Application Process |
Online |
|
Prominent Features and Benefits |
Cashback on annual spending, free cash withdrawal for 48 days, fuel and railway surcharge waiver |
Applying for a credit card against a fixed deposit is a safe and secure way to improve your credit score. They are easy to apply for and come with various benefits and cashback offers.
If you are looking for an HDFC Credit Card against FD, you can get in touch with the nearest HDFC bank. SBI, Axis Bank, IDFC First Bank, and Kotak Mahindra Bank offer credit cards against an FD of Rs.5,000 and above.
These cards also allow you cash withdrawals for 45 days and above without any interest. Some of them even have no annual maintenance charges and are free to use. You can apply for them either online, through your bank’s app, or by visiting your bank’s nearest branch.
Most major banks offer credit cards against fixed deposits. Which is the best for you depends on the application process, the FD amount required, and other eligibility criteria.
For credit cards against fixed deposits, banks set credit limits up to 75% - 80% of the FD amount.
Yes, just like you can increase your regular credit card’s limit, you can also increase your FD-based credit card’s limit. But it will depend on factors like your credit history and income.
Yes, you can. However, you will have to close the card before you close the FD it was taken against.
For getting a credit card against an FD, the amount you need to invest in an FD varies from bank to bank. It starts from Rs.5,000 and can go up to Rs.25,000 or more.
Thank you. Your feedback is important to us.