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Credit Card on a Fixed Deposit

How to get Credit Card on a Fixed Deposit

Whenever you apply for a new credit card, you will have to meet certain criteria, such as a fixed source of income, good credit score, etc. Now, if you are unable to get credit cards because of a low credit score or CIBIL score or for any other additional reason, then you can get a credit card against your fixed deposit. These credit cards are also known as secured credit cards.

Read this blog to get a better grasp of how credit cards against fixed deposits work.

Benefits of a credit card against a fixed deposit

If you are wondering what the features and benefits of a secured credit card or credit card against a fixed deposit are, then here’s something for you:

  • Affordable FD amount: The FD amount based on which you can get a credit card usually ranges between ₹10,000 and ₹20,000, which is quite affordable.
  • Good credit limit: The credit limit offered to you on your credit card against a fixed deposit usually depends on the fixed deposit itself. In most cases, banks allow users to use up to 75% to 85% of the fixed deposit amount as the credit limit.
  • Builds your credit score: Do you have a bad credit score and wish to rebuild it? Then applying for a credit card on your fixed deposit is one of the best ways to do so.
  • Low documents required: Another benefit of credit cards on fixed deposits is that you can get the card approved with minimum documentation. 
  • Low tenure: The minimum tenure that you provide to the bank for your fixed deposit has to be at least 6 months. Therefore, the tenure is also very low.
  • Interest-free time period: In addition, most banks also offer an interest-free tenure that ranges between 48 to 55 days on secured credit cards.
  • Extra rewards: You also get to enjoy all the additional benefits of a credit card – reward points, airport lounge access, cashback offers and more.
  • Earn interest: Even if you get a credit card on your fixed deposit, you will still be earning interest on your fixed deposit.

Read more: What are the best credit cards for beginners in India?

How to apply for a credit card against fixed deposit

Here are the steps to apply for a credit card against your fixed deposit:

  • To apply for a credit card against a fixed deposit from a bank, make sure you already have a fixed deposit within the same bank
  • Next, just go to the bank’s website
  • Go to cards
  • Select credit cards and apply from there

Read more: What is a credit card statement?

What are the documents needed to get a credit card against my fixed deposit?

If a credit card against your fixed deposit sounds good to you, then the good news is that you won’t really have to provide a lot of documents to get the credit card. Here are some points that you should note:

  • Since you already have a fixed deposit account with the bank, the bank will use your existing data to offer you a credit card
  • The bank may check the validity of the proofs, such as your residential address
  • In case you are opening a new fixed deposit account with the bank, you will have to submit your ID proof and residence proof

What are the eligibility criteria to get a credit card against a fixed deposit?

There are no eligibility criteria that you have to meet to get your secured credit card. You just need to have a fixed deposit account with the bank to get this card.

Who should apply for a credit card against a fixed deposit?

Anyone can apply for a credit card against a fixed deposit, but it is best suited for these people:

  • Individuals who do not have a fixed income source or low income
  • Those who have a low credit score and cannot apply for a regular credit card
  • Retired or senior citizen
  • Students 
  • Homemakers

Get the Airtel Axis Bank Credit Card!

Finally, if you are looking for the best credit card out there, then you should not look any further than the Airtel Axis Bank Credit Card. It will help you make savings, each time you pay. Stand a chance to save up to ₹18,000 per year with this credit card.

In addition, enjoy benefits such as discounts at partner restaurants, fuel surcharge waivers, domestic airport lounge benefits and much more!

Read more: A complete guide on how to improve your credit score

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