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Are you a new-to-credit customer or having low credit score? Here are some secured credit cards offered by banks

The FD acts as a security to the bank that issues the credit card. A lien is marked on the FD until the credit balance is settled. In case the cardholder defaults on payment, the FD is used to settle dues.

July 12, 2022 / 08:03 AM IST
Some banks are issuing credit cards against fixed deposits (FDs). Such credit cards are called ‘secured’ as they are issued against collateral i.e. FD. If you have a low credit score or you are a new-to-credit (NTC) customer, then getting a secured credit card can be a good option for you. The credit limit for a secured credit card is usually a percentage of the FD balance, which varies with the bank.
Some banks are issuing credit cards against fixed deposits (FDs). Such credit cards are called ‘secured’ as they are issued against collateral i.e. FD. If you have a low credit score or you are a new-to-credit (NTC) customer, then getting a secured credit card can be a good option for you. The credit limit for a secured credit card is usually a percentage of the FD balance, which varies with the bank.
With a secured card, the cardholder will not only reap the benefits of a credit card but will earn interest as well on the fixed deposit. Here  Paisabazaar  has compiled a list of secured credit cards available in the market to help you find the right one for your needs.
With a secured card, the cardholder will not only reap the benefits of a credit card but will earn interest as well on the fixed deposit. Here Paisabazaar has compiled a list of secured credit cards available in the market to help you find the right one for your needs.
Image Source:  Kotak Mahindra Bank  | Kotak 811 #DreamDifferent Credit Card offers a credit limit of up to 90 percent of the fixed deposit amount. A minimum investment of Rs 10,000 is required in a fixed deposit to get this secured credit card. A user gets 500 bonus reward points on spending Rs 5,000 within 45 days of issuing the credit card and Rs 750 cashback on annual spending of Rs 75,000. It offers two reward points per Rs 100 spent online and one reward point for every Rs 100 spent in other categories. The annual fee is NIL for this credit card.
Image Source: Kotak Mahindra Bank | Kotak 811 #DreamDifferent Credit Card offers a credit limit of up to 90 percent of the fixed deposit amount. A minimum investment of Rs 10,000 is required in a fixed deposit to get this secured credit card. A user gets 500 bonus reward points on spending Rs 5,000 within 45 days of issuing the credit card and Rs 750 cashback on annual spending of Rs 75,000. It offers two reward points per Rs 100 spent online and one reward point for every Rs 100 spent in other categories. The annual fee is NIL for this credit card.
Image Source:  IDFC First Bank  | IDFC FIRST WOW Credit Card offers a credit limit of up to 100 percent of the fixed deposit amount. A minimum investment of Rs 5,000 is required in a fixed deposit to get this secured credit card. It offers up to 4X reward points on your spending. There is zero forex markup fee for international transactions. Users can get up to 20 percent discount at partner restaurants and up to 15 percent discount at health and wellness outlets. The annual fee is NIL for this credit card. The bank will issue this credit card from August 2022.
Image Source: IDFC First Bank | IDFC FIRST WOW Credit Card offers a credit limit of up to 100 percent of the fixed deposit amount. A minimum investment of Rs 5,000 is required in a fixed deposit to get this secured credit card. It offers up to 4X reward points on your spending. There is zero forex markup fee for international transactions. Users can get up to 20 percent discount at partner restaurants and up to 15 percent discount at health and wellness outlets. The annual fee is NIL for this credit card. The bank will issue this credit card from August 2022.
Image Source:  Axis Bank  | Axis Insta Easy Credit Card offers a credit limit of up to 80 percent of the fixed deposit amount. The user gets six points on every Rs 200 spent domestically and twelve points on every Rs 200 spent internationally. It offers 15 percent off on dining at partner restaurants. The annual fee is NIL for this credit card.
Image Source: Axis Bank | Axis Insta Easy Credit Card offers a credit limit of up to 80 percent of the fixed deposit amount. The user gets six points on every Rs 200 spent domestically and twelve points on every Rs 200 spent internationally. It offers 15 percent off on dining at partner restaurants. The annual fee is NIL for this credit card.
Image Source: Paisabazaar | Paisabazaar Step Up Credit Card offers a credit limit of up to 100 percent of the fixed deposit amount. Paisabazaar has launched this credit card in partnership with SBM bank. The users can invest from Rs 2,000 to Rs 1 lakh in these FDs. The users get one reward point for every Rs 100 spent via this card. There is a joining fee of Rs 200 on FD of Rs 2,000, and no joining or annual fees for FDs above Rs 2,000.
Image Source: Paisabazaar | Paisabazaar Step Up Credit Card offers a credit limit of up to 100 percent of the fixed deposit amount. Paisabazaar has launched this credit card in partnership with SBM bank. The users can invest from Rs 2,000 to Rs 1 lakh in these FDs. The users get one reward point for every Rs 100 spent via this card. There is a joining fee of Rs 200 on FD of Rs 2,000, and no joining or annual fees for FDs above Rs 2,000.
Image Source:  SBI Card  | SBI Unnati Credit Card offers a credit limit of up to 100 percent of the fixed deposit amount. A minimum investment of Rs 25,000 is required in a fixed deposit to get this secured credit card. The users receive Rs 500 cashback on annual spending of Rs 50,000 or more and one reward point for every Rs 100 spent via this card. The annual fee of Rs 499 is waived off for four years, and from the fifth year, the renewal fees will be charged.
Image Source: SBI Card | SBI Unnati Credit Card offers a credit limit of up to 100 percent of the fixed deposit amount. A minimum investment of Rs 25,000 is required in a fixed deposit to get this secured credit card. The users receive Rs 500 cashback on annual spending of Rs 50,000 or more and one reward point for every Rs 100 spent via this card. The annual fee of Rs 499 is waived off for four years, and from the fifth year, the renewal fees will be charged.
For NTC customers, this could be one of the first credit cards. You must have a disciplined approach to your credit behaviour. Once you get a credit card, it is critical that you use it smartly and responsibly. Since credit cards offer a significant interest-free period, there may be a tendency to overspend in multiple categories including shopping, travelling, dining and more. Avoid overspending to earn bonus rewards points and benefit from discount offers. The FD acts as a security to the bank that issues the credit card. A lien is marked on the FD until the credit balance is settled. In case the cardholder defaults on payment, the FD is used to settle dues.
For NTC customers, this could be one of the first credit cards. You must have a disciplined approach to your credit behaviour. Once you get a credit card, it is critical that you use it smartly and responsibly. Since credit cards offer a significant interest-free period, there may be a tendency to overspend in multiple categories including shopping, travelling, dining and more. Avoid overspending to earn bonus rewards points and benefit from discount offers. The FD acts as a security to the bank that issues the credit card. A lien is marked on the FD until the credit balance is settled. In case the cardholder defaults on payment, the FD is used to settle dues.
Credit,Cards
Paisabazaar has compiled a list of secured credit cards for users with poor credit score and NTC customers. All credit card information is sourced and updated as of June 21, 2022.
Hiral Thanawala is a personal finance journalist with 9 years of reporting experience. Based in Mumbai, he covers financial planning, banking and fintech segments from personal finance team for Moneycontrol.
first published: Jul 12, 2022 08:03 am
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