Credit Cards against fixed deposit is a very good option for people with bad credit history or limited income. People with bad credit history or low credit score struggles a lot to get a credit card. They can opt for Credit Card against a fixed deposit. These type of credit cards are also known as a secured credit card. Secured credit cards are backed by fixed deposit. If card user defaults in paying credit dues bank will use fixed deposit amount to repay dues. The interest applicable to these type of cards is low compared to normal credit card.
If you are planning to apply for credit card against a fixed deposit. Here is a list of 7 credit cards against a fixed deposit.
7 Credit Cards against Fixed Deposit
SBI Advantage Plus Card
SBI Advantage Plus card is offered against fixed deposit of SBI. If you are SBI customer and holding fixed deposits you can apply for SBI advantage Plus card.
Key Features and Benefits
- Flexipay facility to convert your transaction to EMI.
- Cash withdrawal limit up to 100%
- Easy Bill Pay facility for paying utility bills.
- Credit card limit up to 85% of the FD amount.
- Easy money facility. Get draft or cheque against your credit limit.
Fees and Charges
- Annual Fee – Rs.500 + GST
- Renewal Fee – Rs.500 + GST
- Finance charges – Up to 2.25% per month or 27% per annum, from the transaction date
- Late payment – Up to Rs.750
SBI Card Unnati
SBI Card Unnati is No annual fee card for first four year. This card is issued against a fixed deposit of Rs.25000 or more.
Key Features and Benefits
- No annual fee for first four years.
- Get 1 Reward point per Rs.100 spent.
- 1% fuel surcharge waiver for each transaction between Rs.500 and Rs.3000.
- 500 cashback on spends of Rs.50000 or more in a year.
- Easy redemption of rewards.
Fees and Charges
- Annual Fee – NIL up to 4 Years
- Renewal Fee – Rs.499 (5th Year Onwards)
- Finance charges – Up to 2.50% per month or 30% per annum, from the transaction date
- Late payment – Up to Rs.750
ICICI Bank Coral Credit Card
ICICI Bank Coral Credit Card is offered against fixed deposit. You need not to submit any income document to get this credit card.
Key Features and Benefits
- Double the rewards on dining, groceries and at supermarkets
- Buy one and get one movie ticket through the week at bookmyshow
- Minimum 15% saving on dining at over 800 restaurant
- Get 1 payback point on every Rs.100 spent on utility and insurance categories.
- Complimentary access at airport lounge access.
Fees and Charges
- Annual Fee – Rs.500 + GST
- Renewal Fee – Rs.500 +GST
- Finance charges – 3.4% on revolving credit.
ICICI Bank Instant Platinum Credit Card
ICICI Bank Instant Platinum Credit Card is no annual fee credit card offered against fixed deposit. You can build or repair your credit score by using this credit card.
Key Features and Benefits
- Earn reward points and redeem of cash
- Get 2 Payback point on every Rs.100 spent
- Instant card issue from ICICI branches
- 15% saving on dining over 800 restaurant
Fees and Charges
- Annual Fee – NIL
- Renewal Fee – NIL
- Finance charges – 2.49% per month or 29.88% annualized
Also Read – 15 Types of Credit Cards in India and Usage
Axis Bank Insta Easy Credit Card
Axis Bank Insta Easy Credit card is offered against fixed deposit. Minimum fixed deposit requirement is Rs.20000.
Key Features and Benefits
- Cash withdrawal up to 100%
- Flexible credit limit facility as per requirement
- Credit limit up to 80% of FD principal value
- 1% fuel surcharge waiver on all fuel transactions
- 50 Credit free days
Fees and Charges
- Annual Fee – NIL
- Renewal Fee – NIL
- Finance charges – 2.50% per month or 34.49% per annum
Yes Prosperity Reward Plus Credit Card
Yes Prosperity Reward Plus card is available against fixed deposit and salary proof.
Key Features and Benefits
- Assured 1250 Reward Points on spends of Rs 5000 within first 30 days of card set-up date
- Fuel surcharge waiver at all fuel stations across India
- Accelerated rewards on birthday, dining and online spends
- Exclusive reward catalogue for selection
Fees and Charges
- Annual Fee – Rs.350 + GST
- Renewal Fee – Rs.350 + GST
- Finance charges – 2.99% per month or 35.88% per annum
Kotak Mahindra Bank Aqua Gold Credit Card
Kotak Mahindra Bank Aqua Gold Credit Card is issued against fixed deposit of minimum amount Rs.25000. Only individual name term deposit is required for applying credit card.
Key Features and Benefits
- Credit limit up to 80% of the term deposit amount
- Fuel surcharge waiver up transaction of Rs.3500
- Insurance coverage up to Rs.50000 against fraudulent usage
- Multiple redemption options
Fees and Charges
- Annual Fee – NIL
- Renewal Fee – NIL
- Finance charges – 2.99% per month or 35.88% per annum
Benefits of Credit card against fixed deposit
- Instant approval, fewer documents are required to avail this credit card.
- No income proof is required to avail this credit card.
- You will surely get credit card irrespective of your credit history.
- Low-interest rate compared to normal credit card option.
- Fixed deposit interest payment will continue irrespective of credit card usage.
- It is a win-win product for bank and end user.
Drawbacks of Credit card against fixed deposit
- It is card offered against your fixed deposit saving.
- You cannot close your FD unless you clear the credit card dues.
- Overuse of credit card and not paying in time will destroy your saving.
Why should you consider Credit Card against Fixed Deposit?
Looking at benefits given above you must be in agreement with me that credit card against fixed deposit is very good credit card option. You can even use a credit card as a tool to improve your credit score and credit history.
Remember – Credit card can be a great tool, if used wisely. Make sure to pay your dues on time.
