The credit cards that are issued against a fixed deposit are also called as secured credit cards and it is one of the easy yet under utilized way to improve the CIBIL score. I’ve had a credit card based on fixed deposit for about 4 years since i was in college and it had undoubtedly contributed a lot to improve my CIBIL score.
Unsecured credit cards or loans are not easily given to you when your CIBIL score is below 750 as lenders donot know your credit worthiness and can’t predict you without data. So you have to start with secured credit cards, usage of which can tell credit bureaus like CIBIL as how good you’re managing the credit.
Your credit card usage over a period of time gives them enough data to arrive at a proper CIBIL score, which then helps you to get approved for loans & unsecured credit cards in future. Here are some of the most famous credit cards issued based on FD for starters.
Best Secured Credit Cards in India (FD Based)
1. Axis Insta Easy Credit Cards:
Axis Bank Insta Easy Credit Card was the first credit card i’ve ever had in my life. Axis Bank credit cards are pretty good to use and their customer support is responsive for any queries you initiate. I had a nice time with them and their Edge Loyalty rewards program has evolved very much in recent times. I used to redeem my reward points for Flipkart vouchers and use it to buy some cool items those days.
Interesting Facts with Axis Bank Cards: Axis is generous in giving the credit limit on FD that one of our reader had 16 Lakhs credit limit on 20Lakhs FD. Some banks do not give such huge limits even though your FD value is high. Usually banks provide 70%-80% of the fixed deposit amount as your credit limit.
2. ICICI Instant Platinum Credit card
ICICI is famous for its instant credit card. You simply visit the branch and walk away with a credit card in matter of minutes with basic documentation. ICICI Instant Platinum Credit card is one of my most used credit card in my earlier ages. With all these Payback promotions, i thought its the best card in the industry which helps you get a lot of payback points. Well, now it turned out to be one of the worst rewarding card i’ve ever used in my life.
I accumulated thousands and thousands of points in a span of 3 yrs or so and filled my home with Speakers, card holders, saree’s for my Mom, etc. If i had the knowledge on credit cards those days, i would have saved 4 times more than what i earned with this card. That’s a huge loss as i had been using the card for quite a lot of transactions.
However, its one of the best cards for those who simply need to improve your credit score with no joining fee.
Tip: I personally like this card as they instantly increase your credit limit if you pay online. Infact, you can even increase your credit limit as high as you wish to carry out bigger txn’s simply by depositing an extra amount to the card account. I’ve done it countless times.
3. SBI Credit Cards
I recently opted for SBI Signature credit card which is now SBI Elite Card based on my Fixed Deposit of 1.25 Lakhs and its one of the best premium credit cards. I was able to earn Rs.18,000 Cashback with SBI Signature Credit Card reward points with this card. I have this even now as on Oct 2016 and might cancel it as its recently devalued to Elite card.
I had to go for this secured card as my city was not serviceable for SBI credit cards an year back.
Tip: Apart from CIBIL benefits, if you plan to spend a lot on your card, say 7 Lakhs or so, consider this one. BookMyShow Offer on this card is my Favorite.
4. HDFC Credit Cards
HDFC like any other bank also issue credit cards based on FD and they are the leader in credit card industry in India having the maximum market share both in volume of cards and also in amount of transactions.
Most of HDFC Credit cards can be obtained based on FD including premium cards like HDFC Regalia if you have FD of approx 4L or so.
5. Indusind Credit cards
While i’m still not a fan of Indusind credit cards because they charge a very high joining fee for almost all credit cards except one, which is Indusind Aura Credit Card. You can apply for this card based on FD with Rs.899+ST as joining fee which they’ll waive off after spends of Rs.25,000 within first 3 Months of applying the card.
Tip on CIBIL Score: Usage of secured credit cards for 2+ years can easily lift your CIBIL score to a very good level. If you need a quick way to boost your score its fine to have 2 or 3 credit cards, as long as you can manage them properly.
While there maybe other banks issuing credit cards on FD, these are my top 5 picks. What’s your experience with secured Credit cards? Share your comments below.