For individuals with a limited income, access to traditional credit cards can sometimes be challenging due to strict eligibility criteria. However, a fixed deposit (FD) credit card can be a great alternative. These cards are secured against a fixed deposit, allowing users to enjoy the benefits of credit without needing a high income or an excellent credit score.
Here’s a detailed look at some of the best FD credit cards available in India and how they can benefit low-income earners.
What Is a Fixed Deposit Credit Card?
An FD credit card is a type of secured credit card where your fixed deposit serves as collateral. The credit limit is typically a percentage of the FD amount, usually up to 90%. This type of card is ideal for low-income earners, students, or individuals new to credit. It helps users build or improve their credit scores while offering the convenience and benefits of a regular credit card.
Why Consider an FD Credit Card?
If you have a steady income but fall short of the eligibility for an unsecured credit card, an FD credit card can provide you with:
- Access to Credit
Even without a high income or strong credit score, you can obtain a credit card secured by your FD
- Credit Card Benefits
Many FD credit cards offer similar perks to unsecured ones, such as reward points, cashback, and EMI options
- Credit Score Building
Regular use and timely repayment help build a strong credit history
- Low Risk
Since these cards are secured against an FD, banks face lower risks, making approvals easier
See also: Social Media Marketing: Leveraging Platforms for Business Growth
Some of the Best FD Credit Cards in India
Here are a few FD credit cards that could suit low-income earners:
1. SBI Card Unnati
- Eligibility: FD of ₹25,000 or more with SBI
- Features:
- No annual fee for the first four years
- Reward points on purchases
- Interest-free credit period of up to 50 days
- Why It’s Suitable: This card is beginner-friendly and has no hidden fees for the initial years
2. Axis Bank Insta Easy Credit Card
- Eligibility: Minimum FD of ₹20,000
- Features:
- 100% cash withdrawal limit
- 15% dining discounts at partner restaurants
- No income proof required
- Why It’s Suitable: With minimal documentation and additional perks, this card is convenient for low-income earners
3. ICICI Bank Instant Platinum Credit Card
- Eligibility: FD of ₹10,000 or above with ICICI Bank
- Features:
- No annual fee
- Reward points on all purchases
- Fuel surcharge waiver
- Why It’s Suitable: Its low FD requirement makes it accessible for individuals with limited savings
4. HDFC Bank MoneyBack Secured Credit Card
- Eligibility: Minimum FD of ₹50,000 with HDFC Bank
- Features:
- Earn cashback on online spends
- Redeem reward points as statement credit
- Fuel surcharge waiver
- Why It’s Suitable: This card offers a mix of cashback and rewards, catering to individuals who prefer online transactions
5. RBL Bank FD Credit Card
- Eligibility: Minimum FD of ₹15,000 with RBL Bank
- Features:
- Reward points on every purchase
- EMI options for large spends
- Contactless payment
- Why It’s Suitable: Its low FD requirement and ease of converting transactions into EMIs make it user-friendly
Factors to Consider Before Choosing an FD Credit Card
Selecting the right FD credit card depends on your financial needs and habits. Here are some factors to consider:
- Check the minimum FD requirement and ensure it aligns with your savings
- Look for a card that offers a sufficient credit limit based on your FD
- Compare annual fees, late payment charges, and interest rates
- Evaluate the card’s benefits, such as rewards, cashback, or discounts, and how they suit your spending habits
- Choose a card from a bank where you already hold an account or FD for smoother processing
How an FD Credit Card Can Be Beneficial
FD credit cards can provide several advantages for low-income earners:
- With the FD as collateral, approval is simpler compared to unsecured cards
- Using the card responsibly encourages better money management
- You can enjoy the flexibility of credit without high-income requirements
- Since it’s secured, you can access credit without risking financial instability
How to Apply for an FD Credit Card
The process for obtaining an FD credit card is straightforward:
- Choose a bank offering FD credit cards and open an FD account with the required amount
- Submit the necessary documents, including identity proof, address proof, and FD receipt
- Once the bank verifies your details, the credit card will be issued
Final Thoughts
A fixed deposit credit card can be a practical solution for low-income earners seeking access to credit. By offering features similar to regular credit cards, these cards help users enjoy the credit card benefits without stringent eligibility requirements. Before applying, ensure you compare your options and choose a card that aligns with your financial needs. With the right FD credit card, you can build your credit score while enjoying the convenience of modern financial tools.
