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Exploring Credit Cards Secured by Fixed Deposits

Credit Card Against FD: An Overview

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Credit cards against FD, also known as secured credit cards, enable you to use them like a usual credit card. However the biggest upside of these cards is they can be got with no income requirements, neither do customers need a high credit score. The FD acts as security against the card.

The credit limit you get is 75% to 80% of the total value of the deposit. But some credit card companies offer 100% of the total value of your FD along with interest. 

Despite its many benefits, is getting a credit card against FD a good option? Let us discuss some of the benefits of credit cards against FDs to help you make a wise choice. 

Benefits of a credit card against FD

No need to have a credit history 

Most issuers consider the applicant’s credit history before issuing a credit card. This is so because it reflects the creditworthiness of the cardholder, helping issuers know if the applicant is or not a high-risk borrower. 

However, this is not true when you apply for a credit card against an FD. If you have a low credit score or no credit history whatsoever, you can apply for this credit card. This is useful for those who want to start building their credit history. If you have a poor credit score, you can apply for one to improve the same by making timely repayments. 

Minimal paperwork

For issuing a regular credit card, financial institutions require many documents, including identity proof, income proof, address proof etc. After evaluating the same, the issuer might approve or reject your application. 

In the case of a secured credit card, the issuer asks for minimal paperwork like a PAN card and identity proof to open your FD and provide a credit card. This process is easier and faster.  The likes of OneCard, with approval in a few minutes, have made getting an instant credit card against FD possible.

Income proof is not needed

Financial institutions always ask applicants to submit income proof to assess their repayment capacity. The higher your income, the higher your limit and the more chances you have of approvals. But this is not required in the case of a credit card against an FD as your FD is the security. People with low income can also get a credit card with a higher limit because of their fixed deposit. 

Additional perks of having a secured credit card

Having a regular credit card gives you many benefits in times of need. But a secured credit card against a fixed deposit comes with additional advantages. Here you will enjoy the perks of regular credit cards and the benefits of an FD. Attractive FD interest rates provided by the issuer will be added to the credit card advantages.

No hidden charges and exciting rewards 

Most credit cards have interest charges in the form of annual or maintenance charges that increase the overall cost of having a credit card. In case of a credit card against an FD, you do not need to pay any additional charges for the same. 


Credit cards against FDs are helpful for those who aim to rebuild their credit or wish to develop their credit history. They are easily approved as they have no risk for the issuer. Not only this, but you also earn interest against the FD you have opened, which also serves as your credit limit. With minimal documentation and exciting rewards, credit cards against FDs are a great choice for those willing to improve or build their credit history.