If someone has a low or no credit score, it is difficult or impossible to qualify for a generic credit card. Every credit card issuer looks for individuals with a 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 or FD-based credit cards in the market. In order to qualify for a regular credit card with a higher credit limit and premium benefits, you can build a strong credit history or a high credit score using an FD-based credit card. To opt for a secured credit card, you would need to open a fixed deposit with the bank or NBFC, and against that, you would receive a credit card. Customers can use this credit card to build up their credit history while earning rewards.
Thousands of people find it challenging to start their credit journey due to a lack of credit history, but FD-based credit cards make their tasks easier. You can get these cards even without a credit score, just by opening a fixed deposit account in the respective bank. But, in order to get these cards, you should be aware that all credit cards are issued in the secured category. We are here to help you find out the list of best secured FD-based credit cards in India, along with all their benefits and other important details:
4 RPs/₹150 Spent Online/Offline. 1 RP/₹150 Spent on Insurance and Utility Payments. Up to 3 RPs/₹150 Spent via UPI
Discounts, Complimentary Memberships, Cashback, and More Worth Over ₹5,000
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The IDFC FIRST WOW! Black Credit Card is one of the best fixed deposit-backed credit cards for beginners who want premium travel benefits without paying a high annual fee. It offers 0% forex markup, allowing you to save on international transactions while still earning 4 Reward Points for every ₹150 spent on regular purchases. Reward Points can be redeemed at ₹0.50 per point for flight and hotel bookings through the IDFC FIRST Bank Mobile App, offering a higher value for travelers. Along with zero forex charges, the card also includes domestic airport lounge access, trip cancellation cover, and a complimentary RuPay UPI credit card, making it an excellent choice for first-time credit card users who plan to travel.
5% Cashback at Myntra, 3% Cashback on Cleartrip, and 2% Cashback on Flipkart. 1% Cashback on All UPI and Non-UPI Transactions
None
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The Utkarsh Small Finance Bank superCard is a lifetime free secured credit card launched with super.money, making it easy for anyone to start their credit journey. By creating a fixed deposit starting as low as ₹100, you get access to a virtual RuPay card that also works for UPI payments. This card offers 5% cashback on Myntra, 3% on Cleartrip, 2% on Flipkart, and 1% on all other spends, with cashback directly redeemable through the super.money app into your bank account. Since a fixed deposit backs it, approval is hassle-free, and you also earn FD interest up to 6.5% along with cashback benefits.
1% Cashback on UPI Spends Via IDFC App and 0.5% Cashback on All Other Spends Including Utilities and Insurance
10% Cashback Up to ₹250 (On First Transaction Within 15 Days of Card Issuance)
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The IDFC FIRST EA₹N Credit Card is a secured card offered by IDFC First Bank, requiring a minimum fixed deposit of ₹5,000. Designed for UPI users, it provides 1% cashback on all UPI transactions made via the IDFC mobile banking app and 0.5% cashback on other eligible spends, including utilities and insurance. With a joining fee of ₹499 plus GST, cardholders can earn up to ₹6,000 cashback annually, along with a 25% discount on movie bookings through Paytm, saving up to ₹1,200 a year. This card is ideal for first-time applicants, those looking to build or improve their credit score, and users seeking a convenient way to earn cashback on their everyday UPI spends.
2 RPs/₹100 Spent on Retail and 1 RP/₹100 Spent on Utility and Insurance
500 Reward Points
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AU Bank recently launched its first-ever secured credit card, called NOMO Credit Card. To avail of the card, one needs to make a minimum fixed deposit of ₹20,000. The joining fee for this credit card is ₹200, and there are no renewal charges from the second year onwards, making it essentially free for a lifetime. The NOMO Credit Card enables users to earn 2 Reward Points for every ₹100 spent on all transactions except insurance and utility bills, which earn 1 Reward Point for every ₹100 spent. If you are a frequent domestic traveler, this card offers free access to airport lounges on spends of ₹30,000 in the previous quarter and even provides complimentary access to railway lounges. Additionally, this card rewards higher spends by offering attractive milestone benefits.
4 Reward Points/₹200 Spent (~0.50%)
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The IDFC First WoW! credit card is an FD-based credit card, and you must have a Fixed Deposit of at least Rs. 5000 to get this credit card. The card offers reward points on almost all purchases made by you, and the points are valid for a lifetime without any expiration date. You get movie offers, roadside assistance, and much more with the card. A great feature of the card is that it does not charge a foreign exchange markup fee on your international spending.
Secured or FD-based Credit Cards are 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.
Secured Credit Cards, as mentioned earlier, are the best option for those who have no credit history. The following are some of the most incredible benefits and features of secured credit cards:
Although secured, FD-based credit cards can be issued to you with a bad credit score; they play a massive role in building your credit history. When you get a secured credit card, it is more likely that you need a better 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.
The credit limit of 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 the purchases you made using your secured credit card. However, some cards offer a 100% credit limit against the fixed deposit amount.
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, you should be more than 18 years old or more than 21 years in some cases.
Secured Credit Cards can be the best option for someone to start their credit journey. But before you go for it, you should be aware of whether a secured card would be the right choice for you or not. The following points will help you understand the same:
Though Secured Credit Cards are the best option for everyone to start their credit journey, every individual needs to keep certain points in mind before getting a secured credit card. These points are mentioned below:
Nowadays, most credit card issuers provide online as well as offline methods to apply for credit cards. You can apply for a secured credit card in India online as well as offline at your convenience. To apply offline, visit your nearest branch of the respective bank and open a fixed deposit account there if you don’t already have one. Make sure to carry the required documents, like identity proof, address proof, etc, with you.
For those of you looking to apply for a secured credit card online, you can follow these steps.
Everything has a positive as well as a negative side, so we have secured credit cards. There are many advantages of using a secured credit card, but it can also be disadvantageous sometimes. Refer to the following table to understand all the pros and cons of using a secured credit card:
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If you have a bad credit history or no credit history at all, secured credit cards give you the best opportunity to build your credit score. Most secured credit cards come with exclusive rewards offers through which you can save on your spending.
Just make sure to make all the payments on time to make the best use of your secured credit card. Also, if you have an FD-based credit card, don’t forget to share your experience with it below in the comment section.
A secured credit card is a card that is issued against a fixed deposit (FD) and the credit limit of the card is fixed as per the deposit. Also, these cards are generally issued without any requirement of income proof and a credit score.
The secured credit cards work just like the secured credit cards. You receive the monthly bills and the charges on the same are also almost same. The only difference is that, secured credit cards are issued against a fixed deposit and this deposit acts as a credit limit on the credit card.
If you have little or no income or you are someone who has a bad credit score then getting a secured credit card is a wise choice as they can be issued against a lower income and a bad credit score. Moreover, you can use these cards to improve your credit score.
Secured credit cards are a good choice for those who have little or no income or have a bad credit score. However, these cards generally offer a few features and benefits as compared to unsecured credit cards. Therefore, if you want to enjoy the privileges like airport lounge access, dining benefits, travel benefits, and much more then you should go with an unsecured card. But if you want to improve your credit score then go for unsecured cards.
One Card, IDFC WoW, and Utkarsh Small Finance Bank superCard Credit Card can be availed without having to pay any joining charges.
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 for secured credit cards as these are issued against an FD that acts as a security amount for the card issuer.