Secured Credit Cards Against FD
A secured credit card is issued against a fixed deposit (FD). Your credit limit is a percentage of the FD, which stays with the bank as security and keeps earning interest. Because the bank's risk is covered, these cards are usually approved without a credit score or income proof.
Secured cards are the most reliable way to start a credit history or rebuild a damaged score: use the card, pay the bill on time, and your repayment record is reported to the credit bureaus just like any other card.
Who is it for?
- Students and first-jobbers with no credit history
- Homemakers and gig workers without formal income proof
- People rebuilding a low credit score after past defaults
Key features
No credit score needed
Approval is based on the FD, not your credit history.
FD keeps earning
Your deposit continues to earn interest while it secures the card.
Builds your CIBIL score
Payments are reported to credit bureaus, helping you qualify for unsecured credit later.
Limit linked to FD
The limit is typically a large share of the FD amount, as set by the bank.
Eligibility
- Indian resident above the bank's minimum age
- Willingness to open or lien-mark an FD with the issuing bank
- Valid KYC
Documents required
- PAN card
- Aadhaar
- FD with the issuing bank (often opened during the application)
FD calculator
- Maturity value
- ₹1,23,144
- Amount deposited
- ₹1,00,000
- Interest earned
- ₹23,144
How to apply
- Choose a secured card below.
- Open or link an FD with the issuing bank during the application.
- Complete KYC.
- Use the card and pay the full bill each month to build your score.
How a secured card builds your credit score
Credit bureaus look at whether you pay on time, how much of your limit you use and how long you have had credit. A secured card lets you show all three. Keep utilisation low, pay the total due every month, and after several months of good history you can apply for unsecured cards or loans.
If you miss payments, the bank can recover dues from your FD and the default is still reported — so treat it exactly like a regular credit card.
Frequently asked questions
Can I break the FD while I have a secured credit card?
The FD is lien-marked as security. You usually need to close the card and clear dues before the lien is removed.
Does a secured credit card improve my CIBIL score?
Yes. The card is reported to credit bureaus like any other credit card, so on-time payments help build your score.
Do I earn interest on the FD?
Yes. The FD continues to earn interest at the bank's applicable rate.
Related
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