Credit Card Against FD | Apply for a Credit Card With Low Credit Score
December 15, 2022
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What is a Credit Card on FD?
You want a credit card or loan but you are told that you have a very low or no credit score. But you also can’t build a credit score without getting one. So you are basically in the shoes of a fresher who gets rejected for not being experienced enough. Welcome to the credit score paradox.
You may wonder what can one do in such a situation. But here’s how you can break this paradox with OneCard’s FD+credit card combo!
A secured credit card is nothing but an assured card issued even without any credit score. It is an especially great option for those who have a low credit score or zero credit history. It works just like a regular credit card, the only difference being that it is backed by an FD.
OneCard’s FD+credit card combo is one such type of secured credit card. All you need to do to apply for it is simply create an FD in the OneCard app for any amount between 2000 Rupees and 1 Lac. Your FD works as a refundable security deposit that backs your OneCard and also earns you high interest rate.
Following are some general eligibility criteria to apply for an FD credit card also known as a secured
Create an FD within the limit provided by the lender
It may seem that credit cards against FD should have no restrictions on the credit limit as the
lenders have collateral with them. But due to credit card guidelines, lenders put both a lower
limit as well as an upper limit on the FD amount. The minimum limit for the FD can be as low as
Rs. 2000 while the upper limit can be as high as Rs. 25,00,000 in the case of some lenders.
Fulfill the minimum and maximum (if any) age requirement
Generally, FD credit cards are not issued to minors i.e. individuals below the age of 18 years).
Some lenders also have a maximum age limit to be eligible e.g. 60-70 years of age.
Keep your updated KYC documents handy
This typically includes documents like identity proof, address proof, PAN card, income proof and
Why You Should Apply for a Credit Card Against FD?
Credit limit of 100% of your deposit
Chance to improve your credit score & build a credit history
Earns great interest on your deposit
Comes with a virtual card that you can activate instantly
Lets you convert your purchases into EMIs with the tenure of your choice
How You Can Apply for a Credit Card with Low Credit Score.
If you have a low credit score either because you are new to credit or you have had some financial
problems in the past, getting an unsecured credit card can be tough for you. This is simply because
lenders have to do a lot of risk assessments before handing out loans and credit cards. However, not all
is lost. You still have some of the following options:
Apply for a secured credit card
One of the best ways of getting a credit card that doesn’t take into account your credit score is opting
for a secured credit card a.k.a FD credit card. Secured credit cards are just like any other credit card but
much easier to obtain as the lenders have a cash deposit with them that acts as collateral.
Enquire with your primary bank
If you do not want to take any effort in getting a credit card, one of the easiest ways of getting a credit
card is by contacting your existing bank. If you’ve had an existing relationship with this bank for a long
time, it will be relatively easier for you to get a credit card as they have better knowledge about your
How is OneCard’s FD+Credit card combo different from a prepaid card?
A prepaid card functions more like a debit card. You can only spend the money you have loaded into your account. Once you have used up the loaded amount, you’d need to re-load the card to use it again. Whereas with OneCard + FD combo, your FD amount stays as is, and earns interest too. Which means after a year, your credit limit will increase too.
Your payment history is not reported to the credit bureaus in the case of prepaid credit cards. So unlike FD+OneCard, a prepaid card doesn’t help establish a credit history. OneCard’s FD+credit card on the other hand comes helps you improve your credit score.
An FD credit card is just like any other credit card except for the application process. Therefore if used
properly it can definitely help you improve your credit score. Here’s how it will happen:
Establish a positive credit history by consuming credit and repaying it back on time
Keeping your credit utilization within reasonable limits, ideally below 30%
Avoiding falling into a debt trap
Increasing the age of your credit history by keeping your card for many years
Diversifying your credit mix, especially if you’ve never had a credit card before
Regularly monitoring your credit report and addressing discrepancies if any
1:Is it good to take a credit card against a fixed deposit?
There is nothing good or bad about taking a credit card against a fixed deposit. Getting an FD credit card
depends on your needs and circumstances. If you are new to credit or have a bad credit score due to
some financial issues in the past, getting a credit card against a fixed deposit is ideal for you.
2:Can I transfer money directly from a credit card to a bank account?
Credit cards are designed for making purchases using credit that can be paid back at a later date.
However, if you are in need of cash and do not have any other source, the following are some of the
ways you can adopt to transfer money from a credit card to a bank account:
Cash advance in the form ATM withdrawal
Adding money to wallet
Getting a personal loan against your credit card
However, please do go through the charges and terms and conditions associated with each of the above
options to avoid last-minute surprises.
3:Am I allowed to use my credit card against a fixed deposit for withdrawing cash at an ATM?
An FD credit card is just like any other credit card and hence can be used to withdraw cash subject to the
limits set by your credit card lender.
4:What is the minimum amount of fixed deposit for a credit card?
The minimum amount of fixed deposit for a credit card varies from lender to lender. It can be as low as
Rs. 2000 to as high as Rs. 25,000.
5:Can I get 100% of my FD amount as a credit card limit?
Depending on the credit card lender policies, you can get anywhere between 80% to 100% of the FD
amount as your credit limit.
If you are interested in getting an FD-backed OneCard, download OneCard and get started.