Benefits of Getting a Credit Card Secured by Fixed Deposit

A Credit Card secured against a Fixed Deposit (FD) is an attractive solution for new-age users who may face challenges obtaining traditional Credit Cards. With a Fixed Deposit-backed Credit Card, you enjoy secured credit, low risk, competitive interest rates, and the opportunity to improve your credit score. Essentially, this is a type of secured Credit Card where the Fixed Deposit serves as collateral. While conventional Credit Cards assess your credit history and income to determine approval, FD-backed cards use the deposit as security, making them ideal for individuals with no credit history or a low credit score.

Benefits of a Secured Credit Card Against a Fixed Deposit

Simple Eligibility

Since the Fixed Deposit acts as collateral, the eligibility requirements for FD-backed Credit Cards are more relaxed. This makes it an excellent option for students, new credit users, or individuals with limited credit histories or low credit scores (SLAs).

Helps Improve Your Credit Score

By using the card wisely and making timely payments, you can increase your credit score. Over time, this opens doors to better credit opportunities, including larger loans and unsecured credit lines.

Cautious Credit Limit

The credit limit on FD-backed cards is typically set at 75-90% of the FD amount, which helps control spending. This reduces the risk of overspending and encourages responsible use, ensuring you stay within a manageable financial limit.

Lower Interest Rates

One of the key advantages of an FD-secured Credit Card is the lower interest rates it typically offers. This makes it easier to manage debt and maintain good financial health, especially if you carry a balance on the card.

Earnings on FD

Unlike other types of secured cards, your FD continues to earn interest even as it secures your Credit Card. This means you benefit from your savings while accessing a credit line, offering a dual advantage.

Minimal Documentation

Applying for an FD-secured Credit Card is straightforward, especially if you already have an FD with the bank. The process is quicker, and there is often less documentation required compared to other Credit Card applications.

How to Use Your FD-Secured Credit Card Wisely

• Control Your Credit Utilisation Ratio: Keep your credit usage below 30% of your limit to maintain a healthy credit score. This ensures that you are using your credit responsibly and not accumulating unnecessary debt.
• Monitor Your Expenses: Use your FD-backed Credit Card for essential purchases only. Avoid using it for non-necessary items that could lead to overspending and higher debt.

Who Should Apply for an FD-Secured Credit Card?

• Are new to credit and want to begin building a solid credit history?
• Have a low or no credit score and need a way to improve your credit profile?
• Prefer a safer, controlled credit option with a lower risk of overspending?
• Want to grow your savings while gaining access to a credit line?

If you are in the market for a Credit Card, an FD-secured card could be a great option to reduce financial risk while enjoying access to credit. This card helps set up a solid financial foundation for the long term and can be beneficial when you need to apply for larger loans or unsecured credit in the future. Credit Card apply now and start building your credit history today!

Conclusion

Selecting an FD-secured Credit Card that aligns with your financial goals can make a real difference. Look into the minimum FD amount, Credit Card interest rates, and fees to ensure the card fits your needs. With an FD-backed Credit Card, you gain safe access to credit, benefit from lower interest rates, and build a strong credit history. If you’re ready to take the next step, apply for a Credit Card against your FD today and unlock the benefits of smarter financial planning!