Secured Credit Card

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What is a Secured Credit Card? 

A Secured Credit Card is provided by financial institutions against a collateral to those who are unable to get a regular credit card through the usual banking channels due to a low credit score or other reasons.


In India, you can get a Secured CC by making a cash deposit against a credit card. Typically, the cash deposit will be a fixed deposit. Your credit card limit will be in tune with the fixed deposit and you can further increase the credit limit by increasing the fixed deposit amount. The benefits of a Secured CC include high chances of approval, besides providing you with the opportunity to build your credit profile.

How to Apply for Secured Credit Cards?

Read how to apply for Secured Credit Card both online and offline:


1. Secured Credit Card Apply Online:

If you have an existing fixed deposit, you can easily apply for the Secured credit cards by completing the following steps:


  • Step 1: Visit the official website of Bajaj Markets.

  • Step 2: Provide your contact details along with your personal information.

  • Step 3: Browse through the different secured CCs provided by different banks.

  • Step 4: Select the card.

  • Step 5: Make an application.

  • Step 6: Post-approval, you will receive your secured CC.

2. Secured Credit Card Apply Offline:

For making an offline application, you need to follow the steps given below:


  • Step 1: Visit the nearest branch of the bank and meet the credit card representatives.

  • Step 2: If you don’t have an existing fixed deposit, open a new fixed deposit for the required amount.

  • Step 3: Fill the application form and submit it along with the requisite documents.

  • Step 4: Once your application is approved, you will receive your Secured CC shortly. 

Who Should Apply for Secured Credit Cards?

Anyone with a fixed deposit to their name may choose to apply for a secured credit card in India. That said, the card can be very beneficial to certain individuals like the ones mentioned below. 


  • Housewives 

  • Individuals with low credit scores

  • Individuals with low monthly income

  • Retired individuals with no stable income 

  • Individuals who don’t possess valid income proof 

  • Individuals who are ineligible for unsecured credit cards 

What are the Features and Benefits of a Secured Credit Card?


  • Online/In-store acceptance

The credit card can be used for both in-store and online purchases


  • High Approval Chance

There are high chances of your Secured Credit Card application getting approved. This is because the bank/financial institution is at minimum risk as an unSecured Credit Card is usually a credit card against an FD or any collateral provided by the cardholder.


  • Aids in transitioning to a regular credit card

You can use your Secured Credit Card to increase your credit score. This, in turn, could increase the chances of getting an unsecured credit card approved in the future. Alternatively, if you are punctual with your payment history and achieve a respectable credit score, you can ask your credit card issuer to convert your Secured Credit Card to a regular credit card.


  • Earn interest on your card

Some banks give interest on the collateral offered against a secured credit card. This way, you can also earn interest on your deposit while enjoying all the perks of using a secured credit card.


  • Grace Period

A lot of banks or credit card issuing companies offer grace periods on the Secured Credit Card payment. Thus, in case you are not able to make your credit card payment on time, you can take advantage of this facility to arrange the funds.

How Can a Secured Credit Card Improve Your Credit Score? 

If you’re someone whose credit scores are currently very low, making you ineligible for a variety of credit facilities, getting a secured credit card may help. As you continue to use your card, you create credit history in the process. And each time you pay your outstanding dues in full on time, your credit score gets a positive boost. 


However, keep in mind that even with a secured credit card it takes time to improve your credit score. Depending on how low your credit score is, it may take up to 6 months for you to see a noticeable positive effect. And so, always use your credit card in a responsible manner and pay your bills on time. 

Pros & Cons of a Secured Credit Card 

Just like a regular credit card, a secured card also has its own share of advantages and disadvantages. Here’s a quick preview of the pros and cons of such a credit card.

Pros of a Secured Credit Card 

  • Secured credit cards can be availed even if you don’t have any income. 

  • Individuals with low credit scores can also avail secured credit cards.

  • Secured credit cards can improve your credit score.

  • In some cases, secured credit cards offer far better rewards than other categories of cards. 

Cons of a Secured Credit Card

  • The credit limit of secured credit cards is usually low. 

  • The fixed deposit that you pledge as a collateral may be used by the bank if you fail to clear off your unpaid outstanding bills. 

Different Types of Secured Credit Cards

Below listed are some of the best secured credit card available in India:

  • Bajaj Finserv RBL Bank Freedom SuperCard:

The RBL Bank Supercard is one of the best credit cards against fixed deposits, that provides you with the power of four cards in one. It can be used globally and you stand to receive the best deals on entertainment, travel, online shopping, making purchases at stores, and so on. Besides, receiving reward points on spends, you can enjoy 75% of your credit limit as the cash limit with this card.


  • SBI Advantage Plus Card:

The second among the list of best Secured credit cards against fixed deposit, this card provides extended credit facility at interest rates as low as 2.25% per month. It is also equipped with the ‘Easy Money’ facility, allowing you to receive a cheque or demand draft for the cash required. You can also transfer credit in this card from other credit cards at marginal processing fees. What’s more, once you avail this card, you are eligible for the ‘Encash’ facility, allowing you to open a fixed deposit of either ₹25,000 or ₹50,000. You are billed either ₹2,500 or ₹5,000 per month as EMI for 11 months, for opening the fixed deposit.


  • Axis Bank Insta Easy Card:

This best Secured Credit Card comes with the unbeatable feature of guaranteed approval. You are not required to submit any proof for income. The only eligibility condition is having a fixed deposit with Axis Bank. Other features include an interest-free period of up to 50 days, flexible credit limit, and high cash withdrawal limits. You also get access to various dining offers, fuel surcharge waivers and loyalty rewards. You can also receive up to four add on credit cards with the primary card.

Secured Credit Card Offers 

A Secured Credit Card can provide you with the following offers:


  • Reward points and cashback on purchases.

  • Access to complimentary lounge facilities at airports.

  • Entertainment, dining and movie offers.

  • Discounts and free vouchers on offline and online purchases.

  • Waivers such as those on fuel surcharge.

  • Welcome benefits.

  • Credit limit of up to 100% of your fixed deposit amount.

  • Extensions on credit repayments.

  • Facility to receive add-on cards for your family members.

  • Conversion of purchases up to the specified limit into EMIs.

  • Nominal joining and annual fees.

  • Free credit facility up to a specified period.

What is a Secured Credit Card Limit?

The Secured Credit Card limit is decided on the basis of the collateral provided against it. It is important that you make your credit card bill payments on time as any default on payment can lead to the amount being deducted from the collateral. 

Where is a Secured Credit Card Accepted?

A Secured Credit Card is accepted at all online and offline stores, fuel stations, supermarkets, restaurants, hotels, and so on. You can use it as a regular unsecured credit card at every Point of Sales (POS) system.

Contactless Secured Credit Card 

With the advances in technology, you can now get a contactless secured CC. These credit cards have an in-built chip that uses radio waves to complete your transaction. You are required to tap or wave your contactless card near the card reader. Through radio waves, your card information is transmitted to the POS machine, using the Radio Frequency Identification (RFID) technology. For instance, the Bajaj Finserv RBL Bank Platinum Plus SuperCard uses RFID technology to complete your transactions. Here’s a look at the benefits of this contactless card:


  • Easy completion of a transaction using the RFID chip.

  • Option to also use the EMV chip.

  • Up to 4,000 reward points.

  • Up to 50 days interest-free ATM withdrawals.

  • Up to 90 days interest-free emergency loans.

  • Option to convert your purchase into EMIs

  • Discounts, waivers and free complimentary access to airport lounges. 

Difference Between a Secured Credit Card and a Prepaid Credit Card 

Often, people get confused between a Secured credit card and a Prepaid credit card. While a Secured credit card works against a collateral, a Prepaid credit card works similar to a gift card where funds are already added to it and which are subsequently used when making transactions. Let us understand the main differences between Secured credit card vs Prepaid credit card in detail: 

Secured Credit Card

Prepaid Credit Card

Secured credit card is issued against a collateral

No collateral needed when issuing a Prepaid credit card

Funds are not pre-loaded in the card

Funds are pre-loaded in the card

Usually availed by people with zero-credit history or very poor credit score

Can be availed by people with good credit score

Threat of incurring debt or losing collateral if payments not made on time

Relatively safe since transactions are incurred only against the funds added to the card

FAQs about Secured Credit Card

  • ✔️Which different categories of Secured credit cards are available?

    You can only avail a secured credit card by pledging collateral such as a fixed deposit. However, different banks provide various categories of secured credit cards with different credit limits and features.

  • ✔️I have lost my secured credit card. What do I do now?

    You must immediately contact the credit card services of the bank, usually, a toll-free number, to report the loss of your card.

  • ✔️What are the benefits of using a secured credit card?

    It can help you build or improve your credit profile, thus rendering you eligible for an unsecured or regular credit card. This card provides a range of other benefits such as discounts and waivers, along with minimal documentation and a fast approval process.

  • ✔️How to use a Secured Credit Card?

    A Secured credit card can be used as a regular credit card.However, it is important to note that the credit card limit for a Secured Credit Card would depend on the collateral offered against it.

  • ✔️What is the minimum deposit for a secured credit card?

    The minimum deposit for a Secured Credit Card would differ from bank to bank. You can get in touch with your bank’s credit card customer care support to enquire about the minimum deposit required for availing a secured credit card.

  • ✔️Can Secured credit cards build credit?

    Yes. If you make the payments on your Secured Credit Card on time, you can improve your credit score.

  • ✔️How do you qualify for a secured credit card?

    Secured credit card is issued against a collateral. The deposits are generally cash deposits, FDs, or other assets. The type of acceptable collateral for a Secured Credit Card could differ from one bank to another. If you can provide the necessary collateral accepted by the bank, you can qualify for a secured credit card.

  • ✔️Can I convert a Secured Credit Card to a regular credit card?

    You can improve your credit score with a secured credit card. Alternatively, if your credit card issuer sees that you have been regular with your credit card payments and have achieved a respectable credit score, and meet all the credit card eligibility criteria, you can request your credit card issuer to convert your Secured Credit Card to a regular credit card.

  • ✔️How long does it take to build credit in secured cards?How long does it take to build credit in secured cards?

    Card issuers generally take anywhere from 30 to 45 days to report the issue of a secured credit card to credit information bureaus. Once the card is reported, every transaction and repayment that you make on time will start to build your credit. You can expect noticeable improvement in your credit score in a few months as long as you repay your bills within the due date.

  • ✔️How long should I use a secured credit card?

    The decision as to how long you can use a secured credit card rests with you. In fact, you can choose to use it for as long as you wish. In case your card expires, you can request the bank to provide you with a secured credit card with renewed validity.

  • ✔️Do they charge any interest rates on secured cards?

    Yes. Secured credit cards work in the same way as regular credit cards. Therefore, failing to clear off all the outstanding dues before the due date may lead to interest being levied on the unpaid outstanding amount. The rate of interest applicable for a secured credit card, however, is dependent on the type of card you avail.