A credit card can allow you to increase your spending or purchasing capacity, while simultaneously allowing you to build and maintain a good credit score. But for availing a credit card, you need to fulfil certain eligibility conditions, including having a good credit score. It might, however, be possible that you have a limited or zero credit history. In such cases, your credit card application can be rejected. If you are facing a similar situation, then don’t fret, for you can still avail the features and benefits of credit cards. Wondering how? You can simply apply for a credit card. As opposed to a regular or unsecured credit card, a secured credit card is provided by financial institutions, like banks against collateral. In India, you can get a secured CC by making a cash deposit against the credit card. Typically, the cash deposit will be a fixed deposit. Your credit 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.
You can avail different types of secured credit cards, provided by different financial institutions. Here’s a look:
Among the best secured credit cards against fixed deposit, it 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 every purchase, you have the option of converting your purchases above Rs. 3,000 into convenient EMIs.
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 Rs. 25,000 or Rs. 50,000. You are billed either Rs, 2,500 or Rs. 5,000 per month as EMI for 11 months, for opening the fixed deposit.
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.
You can apply for secured CCs both online and offline. Read on to know about the application process for both modes:
If you have an existing fixed deposit, you can easily make an online application for the secured credit cards of SBI, Axis Bank and RBL on Finserv MARKETS. You are required to complete the following steps:
Step 1: Visit the official website of Finserv MARKETS.
Step 2: Provide you contact details along with 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.
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.
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 offer.
Discounts and free vouchers on offline and online purchases.
Waivers such as those on fuel surcharge.
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.
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.
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 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.
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.
You must immediately contact the credit card services of the bank, usually, a toll-free number, to report loss of your 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.