Along with the accessibility, the application for a credit card against FD is simpler when compared to a regular card. This is because it is secured against collateral, which reduces the risk of extending the credit facility and makes application processing quicker.
This type of card is generally offered to those with no or poor credit history, which makes them ineligible for regular credit cards. By using a secured card, they can build a credit history and eventually become eligible for a regular credit card and other forms of credit.
Here’s how you can apply for a credit card against FD and enjoy its benefits.
How to Apply for a Secured Credit Card
To apply for an FD backed card, the first step is to choose the issuer with the best credit card offers. Once decided, here are the steps you can follow to apply online.
- Step 1: Check the issuer’s terms and charges
- Step 2: Visit their website and navigate to the ‘Apply’ tab
- Step 3: Enter your mobile number and email ID for verification
- Step 4: Fill in the required details
- Step 5: Confirm your details and submit the application
- Step 6: Choose from the offers available on the screen
- Step 7: Enter the FD amount and other information
- Step 8: Book the deposit for a preferred amount
- Step 9: Complete the KYC process and wait for approval
- Step 10: Activate the card once you receive it
The above steps are general and may vary depending on the issuer you choose. You can verify the process through the issuer’s website or by contacting their customer support team.
Why Get an FD-Backed Credit Card?
Here are a few reasons for getting a credit card against FD.
No Credit Score Check
Since secured credit cards are collateral-backed, the issuer can use the collateral to recover the dues in case you don’t pay the bill. As such, there’s no need to check your score, making it a great option for those with inadequate credit history.
No Income Proof Required
Most issuers don’t request proof of income when you apply for a secured credit card. This makes the card suitable for students, housewives, freelancers, and others who don’t have a stable income or income proof.
Quick Access to Funds
It’s best to have a source of instant credit available in case of a financial emergency or urgent requirement. With this option, you can borrow from the issuer and repay the amount without depleting your savings. You can even avoid any interest if you pay before or on the due date.
Build Credit Score
While secured cards don’t require a credit check, they can add to your creditworthiness. With responsible use and timely bill payments, you can build a credit history and improve your score in the long run.
Earn Reward Points and Cashback
Like unsecured cards, these cards also offer a wide range of perks, such as partner discounts, cashback, reward points, seasonal offers, travel and lifestyle benefits and more. You can enjoy all these benefits and make the most of your funds. However, remember that this will depend on the issuer’s policy.
Benefits of Having a Secured Credit Card
Here is a quick overview of the benefits you can enjoy with a credit card against FD.
- Some issuers have lifetime-free cards, which don’t require any joining or annual fees
- You can enjoy a plethora of rewards, perks, and discounts
- Your deposit amount continues to earn interest while you use the credit card
- You have the flexibility to decide your credit limit
- It allows you to leverage your surplus funds and gain access to credit
While choosing between your options, make sure to compare the best credit card offers, benefits, and issuer’s terms. You should also check the eligibility criteria before applying to ensure quick approval and a seamless application process. In addition, checking interest rates and other costs is also crucial for long-term financial planning.
One of the top cards you can consider is the One Credit Card. Applying for this credit card is simple, with a 100% digital application that can be virtually activated within a few minutes. What makes this a good option is that you can enjoy 100% of your FD amount as a credit limit, and you can book an FD between ₹5,000 and ₹1 lakh.
In addition, it offers an interest rate of 7.50% p.a. on your FD. So, you get the required funds and lucrative returns as well. Apply online with minimal details and in just a few clicks to make the most of your finances.