By Ankur Mittal
Updated On October 12, 2021

If someone has a low or no credit score, it might be really difficult or impossible to qualify for a general credit card. Every credit card issuer looks for individuals with a pretty good credit score. But, a credit score can be built only if you have taken credit and that’s the reason why different card issuers have come up with the concept of secured credit cards in the market. In order to qualify for a normal credit card with a higher credit limit and premium benefits, you can build a strong credit history or a high credit score using a secured credit card.

Now, many questions can come to your mind, such as: What is a Secured Credit Card? How can it build your credit score? How can you get a secured credit card? And many more such doubts. In this article, we are here with the answers to all such questions and every additional information you need to know about the secured credit card. Keep reading to understand all these things and to know the Top secured Credit Cards in India.

What Are Secured Credit Cards?

Secured Credit Cards are the credit cards that are issued by the card issuer against a fixed deposit in order to fulfill the credit requirements of people with a low credit history or no credit history. The fixed deposit amount acts as collateral and reduces the risk of the card issuer in case the cardholder doesn’t make payments. The card issuer keeps your deposit in such a case and if you make payments regularly, you will get the deposit back when you close your card.

Difference Between Normal & Secured Credit Cards

Normal Credit Cards
  • Normal/Unsecured credit cards are issued against valid income proof.
  • These are generally issued to individuals with a high credit score (typically above 700).
  • The credit limit of these cards varies depending on the type of card. It can go from very low to very high.
Secured Credit Cards
  • Unlike the general credit cards, secured Credit Cards are issued against a fixed deposit even if the cardholder doesn’t have a stable income.
  • These can be issued to people with a low credit score or no credit history at all.
  • The credit limit of these cards is generally 80-85% of the FD amount you deposit to the card issuer.

Difference Between Secured Credit Cards & Prepaid Cards

Secured Credit Cards
  • As a secured credit cardholder, you are borrowing money from the card issuer.
  • These cards help you build your credit history.
  • An interest rate is charged on these cards.
Prepaid Cards
  • In the case of prepaid cards, you are not borrowing money from anyone. It is your own money that you use to make purchases.
  • Prepaid cards do not have any impact on the credit score as you are using your own money.
  • These cards do not charge any interest.

Impact of Secured Credit Cards on Credit Score

Although the secured credit cards can be issued to you with a bad credit score, they play a huge role in building your credit history. When you get a secured credit card, it is more likely that you have a bad or no credit history. But after getting one, your credit score can increase drastically if you make payments on time. Many people achieve a decent credit score within just six months by using a secured credit card responsibly. Your aim behind applying for a secured credit card should be building your credit score so that you can qualify for an unsecured or normal credit card.

Benefits of Secured Credit Cards

Secured Credit Cards can benefit you in the following ways:

  • Your application for these cards gets approved easily as the card issuer is taking the fixed deposit.
  • You can build or re-build your credit score with these cards.
  • You can qualify for an unsecured credit card within certain months if you use your card wisely.
  • You earn Reward Points on your spends.
  • Secured credit cards generally have a lower interest rate.

Credit Limit of Secured Credit Cards

The credit limit of the secured credit cards is typically around 80-85% of the security amount you deposit to get the card issued. For example, if you have been issued a credit card against an FD of Rs. 25,000, then your credit limit will be around Rs. 20,000 to Rs. 21,250 only. It is set a bit less than the fixed deposit amount so that the card issuer has security in case you don’t pay back for the purchases you made using your secured credit card.

Eligibility Criteria For Secured Credit Cards

Secured Credit Cards usually do not have strict eligibility criteria. There are no specific criteria in terms of income to qualify for the secured credit cards as these are issued against a fixed deposit that acts as collateral. But in terms of age, your age should be more than 18 years or more than 21 years in some cases.

Top Secured Credit Cards in India

SBI Card

SBI Elite Advantage Credit Card

SBI Elite Credit card

Welcome Benefits

Gift voucher worth Rs. 5,000 from any one of  Yatra, Hush Puppies/Bata, Pantaloons, Aditya Birla Fashion and Shoppers Stop

Rewards Rate

2 Reward Points on every Rs. 100 on all spending except fuel (reward rate of 0.5%), 5X Reward Points on dining, departmental stores and grocery spends (reward rate of 2.5%)

Joining Fees

Rs. 4,999 (plus applicable taxes)

Annual Fee – Rs. 4,999

The SBI Elite Advantage Credit Card can be considered as the secured version of the SBI Card Elite, which is the most premium credit card offered by the SBI Card. With all the exclusive reward offers and other privileges, this card can be issued to you against a fixed deposit. The key features of this card include:

  • Up to 10 Reward Points on every Rs. 100 you spend.
  • Welcome gift vouchers worth Rs. 5,000.
  • A discount of up to Rs. 250 on movie tickets on purchasing a minimum of 2 movie tickets.
  • Bonus Reward Points worth up to Rs. 12,500 every year on achieving the milestone spend.
  • 6 complimentary international and 8 complimentary domestic lounge access every year.

 

SBI Prime Advantage Credit Card

SBI Prime Credit Card

Welcome Benefits

Gift voucher worth Rs. 3,000 from any one of Bata/Hush Puppies, Pantaloons, Aditya Birla Fashion, Shoppers Stop and Yatra.com

Rewards Rate

10 Reward Points per Rs. 100 on dining, groceries, departmental stores and movie spends, 2 Reward Points per Rs. 100 on all other retail spends

Joining Fees

Rs. 2,999 (plus applicable taxes)

Annual Fee – 2,999

The SBI Prime Advantage Credit Card is a secured credit card that is issued against a fixed deposit with all the benefits and privileges of SBI Card Prime. The card welcomes its customers with gift vouchers worth Rs. 3,000. More of the benefits of this card include:

  • Earn up to 20 Reward Points on every Rs. 100 you spend.
  • An opportunity to earn Pizza hut vouchers worth Rs. 1,000 every quarter.
  • Complimentary Trident Privilege Red Tier membership.
  • Complimentary Club Vistara Membership.
  • 4 complimentary international and 8 complimentary domestic lounge access every year.

 

SBI SimplyCLICK Advantage Credit Card

SBI SimplyCLICK credit card

Welcome Benefits

Amazon gift voucher worth Rs. 500

Rewards Rate

1 Reward Point per Rs. 100 on offline spends (reward rate = 0.25%), 10X Reward Points on online spends at partner merchants (Amazon, BookMyShow, Apollo24x7, etc.) (reward rate = 2.5%), 5X Reward Points on other online spends (reward rate = 1.25%)

Joining Fees

Rs. 499 (plus applicable taxes)

Annual fee – 499

The SBI SimplyCLICK Advantage Credit Card is a secured credit card with exclusive benefits same as the SBI SimplyCLICK Credit Card. The card offers decent reward points on all your spends and comes with several other advantages such as:

  • Up to 10 Reward Points per Rs. 100 spend on this card.
  • Welcome gift voucher worth Rs. 500.
  • Gift vouchers worth up to Rs. 4,000 on achieving the milestone spend.
  • Spend-based annual fee waiver.

 

SBI SimplySAVE Advantage Credit Card

SBI SimplySAVE Credit Card

Welcome Benefits

2,000 Reward points on expenditure of Rs. 2,000 within 60 days of card issuance

Rewards Rate

1 Reward Point per Rs. 100 spent (reward rate = 0.25%), 10X Reward Points on grocery, dining, movies, and departmental store spends (reward rate = 2.5%)

Joining Fees

Rs. 499 (plus applicable taxes)

Annual Fee – Rs. 499

The SBI SimplySAVE Advantage Credit Card is another secured credit card issued by the SBI Card with all the benefits of the SBI SimplySAVE Credit Card. It is a great choice for people who need a credit card to build their credit history along with saving on all their spends. With this card, you can earn up to 10 Reward Points on every Rs. 100 you spend. Moreover, other benefits on the card, such as fuel surcharge waiver & annual fee waiver, etc are additional opportunities for you to save amazingly with this card.

SBI Unnati Credit Card

SBI Unnati credit card

Welcome Benefits

NA

Rewards Rate

1 reward point on every Rs 100 spent

Joining Fees

Nil

Annual Fee – Nil ( for first 4 years and Rs. 499 after that)

The SBI Unnati Credit Card is issued against a fixed deposit of over Rs. 25,000. The card is absolutely free to have for the first four years and after that, you have to pay a nominal annual fee of Rs. 499. The card comes with various benefits and reward offers that include:

  • 1 Reward Point on every Rs. 100 spent on the card.
  • A cashback of Rs. 500 on achieving the milestone spend.
  • 1% fuel surcharge waiver.

 

ICICI Bank

ICICI Bank Coral Credit Card

ICICI Bank Coral Credit Card

Welcome Benefits

N/A

Rewards Rate

1 PAYBACK Point on every Rs. 100 spent on utilities & insurance related spends, 2 PAYBACK Points on every Rs. 100 spent elsewhere, and 4 PAYBACK Points on every Rs. 100 spent online on the AmEx variant.

Joining Fees

Rs 500 (plus applicable taxes)

Annual Fee – Rs. 500

The ICICI Bank Coral Credit Card is issued against a fixed deposit of Rs. 20,000 or more and comes with exclusive benefits over an array of categories, including travel, entertainment, dining, etc. Some of the key features of this card are as follows:

  • An opportunity to earn up to 10,000 PAYBACK Points every year.
  • 2 PAYBACK Points on every Rs. 100 you spend.
  • A discount of 25% on movie tickets on BookMyShow.
  • Complimentary airport and railway lounge access.
  • Spend-based annual fee waiver.

 

ICICI Bank Instant Platinum Credit Card

Annual Fee – Nil

The ICICI Bank Instant Platinum Credit Card is a secured credit card that is issued against a fixed deposit of Rs. 20,000 or more. It comes with lots of benefits along with reward offers, entertainment & dining benefits, and many more. Some of the main advantages of this card include:

  • 2 PAYBACK Points on every spend of Rs. 100.
  • A discount of 25% on movie tickets on BookMyShow.
  • Savings of 15% or more on dining through the ICICI Bank Culinary Treats Programme.

 

ICICI Bank Rubyx Credit Card

ICICI Bank Rubyx Credit Card

Welcome Benefits

Travel & shopping vouchers worth over Rs. 5,000

Rewards Rate

6 PAYBACK Points per Rs. 100 on international spends and 3 PAYBACK Points per Rs. 100 on domestic spends on the American Express variant; 4 PAYBACK Points per Rs. 100 on international spends and 2 PAYBACK Points per Rs. 100 on domestic spends on the MasterCard variant.

Joining Fees

Rs. 3,000 (plus applicable taxes)

Annual Fee – Rs. 2,000

The ICICI Bank Rubyx Credit Card against fixed deposit is another secured credit card issued by the ICICI Bank against an FD of Rs. 75,000 or more. The card comes with exciting reward programs and various exclusive benefits, some of which are as mentioned below:

  • Gift vouchers worth Rs. 5,000 as a welcome benefit.
  • An opportunity to earn up to 15,000 bonus Payback Points every year.
  • Complimentary domestic airport and railway lounge access.
  • A discount of up to Rs. 150 on movie tickets on BookMyShow.

 

Axis Bank

Axis Bank Insta Easy Credit Card

The Axis Bank Insta Easy Credit Card is a flexible secured credit card that allows you to choose the credit limit on your own up to a maximum of 80% of your FD amount. The bank guarantees the approval of every application for this card provided the applicant should be eligible. The card also provides several benefits to its customers that include:

  • PIN & Chip protection for additional security.
  • Withdraw cash up to 100% of your credit limit.
  • Exclusive discount offers on dining.
  • Up to 12 Edge Reward Points on every Rs. 200 you spend.

 

Flipkart Axis Bank Credit Card

Flipkart Axis Bank Credit Card

Welcome Benefits

Welcome benefit worth Rs. 2,500 on card issuance, benefit of up to Rs. 900 on Gaana app (Gaana Plus membership worth Rs. 1,299 for Rs. 399), discounts and cashback on first transaction on Myntra, The Phy Life and Plum Goodness

Rewards Rate

5% cashback on Flipkart and Myntra, 4% cashback on prefered partners (Swiggy, Uber, PVR and cure.fit) and 1.5% cashback on all other spends.

Joining Fees

Nil

Annual Fee – Rs. 500

The Flipkart Axis Bank Credit Card is a co-branded credit card that can also be issued against a fixed deposit. With this card, you can save up to 5% on your purchases. Other than that, the benefits of this card also include:

  • Welcome benefits worth Rs. 2,900.
  • Complimentary domestic airport lounge access.
  • Exciting discount offers on dining.
  • 1% fuel surcharge waiver.

 

Axis Bank ACE Credit Card
Axis Bank ACE Credit Card

Welcome Benefits

N/A

Rewards Rate

5% cashback on bill payments & recharges via Google Pay, 4% cashback on Zomato, Swiggy & Ola, 2% cashback on all other spends.

Joining Fees

Rs. 499 + GST

Annual Fee – Rs. 500

The Axis Bank ACE Credit Card is another secured credit card issued by Axis Bank with an aim to provide its customers with an opportunity to save amazingly on their online transactions. Some of the key features of the card include:

  • 5% cashback on mobile recharges and bill payments on Google Pay.
  • A cashback of 4% on Zomato, Ola, and Swiggy, and 2% on all other spends.
  • Complimentary domestic lounge access.
  • Savings of up to 20% on dining.

 

Kotak Mahindra Bank

Kotak 811 #DreamDifferent Credit Card

Welcome Benefits

500 bonus Reward Points

Rewards Rate

1 Reward Points on every spend of Rs. 100 and 2 Reward Points on every online spend of Rs. 100.

Joining Fees

Nil

Annual fee – Nil

The Kotak 811 #DreamDifferent Credit Card is a secured credit card issued by Kotak Mahindra bank against a minimum fixed deposit of Rs. 10,000. Moreover, the card comes with zero annual fees and provides various benefits, including reward offers, entertainment benefits, etc. More of the card’s benefits include:

  • Up to 2 Reward Points on every spend of Rs. 100.
  • 500 bonus Reward Points as a welcome gift.
  • A chance to earn 4 free PVR movie tickets each month.
  • Spend-based bonus Reward Points.

 

YES Bank

YES Prosperity Rewards Plus Credit Card

YES Prosperity Rewards plus Credit Card

Welcome Benefits

NA

Rewards Rate

4 Reward Points on every retail spend of Rs. 200. 2 Reward Points on every Rs. 100 spent on tax payments, utilities, postal services, etc.

Joining Fees

Rs. 499

Annual Fee – Rs. 499

The YES Prosperity Rewards Plus Credit Card is among the popular secured credit cards issued by the YES Bank that can be issued against an FD of Rs. 30,000 and more. As the name suggests, the card comes with great reward programs. Its benefits include:

  • Up to 4 Reward Points on every Rs. 200 you spend.
  • Accelerate Reward Points on YES Cart.
  • An opportunity to earn up to 12,000 bonus Reward Points every year.
  • 1% fuel surcharge waiver.

 

Bank of Baroda

BoB Prime Credit Card

Bank of Baroda Prime Credit Card

Welcome Benefits

NA

Rewards Rate

4 Reward Points on every Rs 100 spent.

Joining Fees

Nil

Annual Fee – Nil

The BoB prime Credit Card is issued by the Bank of Baroda with a guaranteed approval against an FD of Rs. 15,000 or more. It is a lifetime free card that comes with exciting reward offers as follows:

  • 4 Reward Points on every Rs. 100 you spend, where 1 Reward Point = Re. 0.25.
  • 1% fuel surcharge waiver up to Rs. 250 per month.

 

IDBI Bank

IDBI Bank Imperium Platinum Credit Card

IDBI Imperium Platinum Credit Card

Welcome Benefits

500 Welcome bonus on the spending Rs 1500 within 30 days of card issuance and 300 Delight point on spending between 31 days to 90 days

Rewards Rate

2 Delight Points on every Rs 150 spent

Joining Fees

Rs 499 + GST

Annual Fee – Rs. 499

The IDBI Bank Imperium Platinum Credit Card is a secured credit card issued against a fixed deposit of Rs. 20,000 or more. This card allows its customers to withdraw cash up to 70% of the credit limit and comes with great reward programs and benefits that include:

  • 2 Delight Points every Rs. 150 spent.
  • Welcome bonus of up to 800 Delight Points.
  • Interest-free credit of up to 48 days.

 

HDFC Bank

The largest private sector bank in India, HDFC Bank, issues most of its credit cards as secured as well as unsecured credit cards providing its customers with an opportunity to avail of all the benefits of normal credit cards even after getting them issued against a fixed deposit without income proof. Even the premium credit cards, such as HDFC bank Regalia Credit Card, can be issued against FD of around Rs. 4,00,000. HDFC Bank Diners Club Black can be issued on a Fixed deposit of 8 lacs and you can even get HDFC infinia credit card on a fixed deposit of Rs 12,00,000

Bottom Line

If you are having a bad credit history or no credit history at all, the secured credit cards give you the best ever opportunity to build your credit score. Most of the secured credit cards come with exclusive rewards offers through which you can save on your spends. Just make sure to make all the payments on time to make the best use of your secured credit card. Also, if you are having a secured credit card, don’t forget to share your experience with it in the comment section below.

FAQs:

The BoB Prime Credit Card, Kotak 811 #DreamDifferent Credit Card, and ICICI bank Instant Platinum Credit Card are some credit cards with no annual fee.

To get a higher credit limit with a secured credit card, you can get it issued against an FD amount equal to or more than the credit limit you want.

Yes, just like the normal credit cards, secured credit cards also charge interest on your card’s balance.

No, you don’t need any income proof to get a secured credit card as it is issued against an FD that acts as a security amount for the card issuer.

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