Secured Credit Card: What is It and How to Apply It?

By OneCard   |   April 18, 2023

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There are quite a few different types of credit cards available in the market. It is natural to be spoilt for choice. But did you know that secured cards are one of the easiest to apply for? With secured credit cards, you can get a credit card without having a credit score or even if you have a low credit score.

In this blog, we will cover all you need to know about secured credit cards, how they work, and when is the right time to get one.

What is a Secured Credit Card

For all usage purposes, a secured credit card works just like any other credit card. The only difference is in the application process. Since the lender does not have any credit score to refer to or your credit score might not be a correct reflection of your current financial status, you will need to make a cash deposit with the lender. The lender then uses this deposit as collateral to issue you a credit card. Additionally, just like with other cash deposits, you will also get to earn a great interest rate on your fixed deposit.

How to Apply for a Secured Credit Card

You can apply for a secured credit card by contacting the lender or by using a lender’s website or app. Applying for a secured credit card requires you to make a cash deposit, usually in the form of a fixed deposit with the lender.

Step 1: Apply on the website or download the OneCard app

Step 2: Complete your mobile and email verification

Step 3: Enter your name & date of birth (as per your PAN card) and your detailed current residential address

Step 4: Add your PAN details

Step 5: Confirm all the details added by you

Step 6: Check the offer generated on the next screen

Step 7: Select your preferred FD amount and add the remaining personal details

Step 8: Make the FD payment & complete the KYC process

Step 9: Add nominee details

Step 10: Activate the virtual card

*Please note: Whether you are eligible for a regular OneCard or an FD-backed OneCard, is decided based on your overall profile during the application process.

Why Should You Opt for a Credit Card, Whether Secured or Unsecured

Credit cards are a great personal financial tool. Following are some of the top advantages of using a credit card for your day-to-day expenses, including big purchases:

1. You can build your credit score

If you don’t have a credit score, getting and using a credit card is an excellent way to start building your credit score. By following the best practices of using credit cards, such as paying dues in full and on time, maintaining your credit utilization ratio, and avoiding debt traps, your credit score will increase over time.

If you’re new to credit, your credit card will start reflecting in your credit report in 40-50 days. If you already have a credit score, you will notice an improvement in your credit score in around 6-8 months.

2. Access to formal credit

Formal credit, that is getting credit from registered banks and financial institutions is always safer as compared to getting personal loans from money lenders, acquaintances, and others. Formal lenders have to adhere to regulations and fair practices enforced by governing bodies like RBI making the overall experience smooth and hassle-free for customers.

3. Manage your finances better

As compared to using cash or debit cards, using a credit card helps manage your finances better as everything is recorded in the app integrated with your card. You will get a clear picture of your total monthly outflow, the top categories you spend in, and more when you use a credit card.


4. Have a financial backup in case of emergencies

In case of any financial emergencies such as hospitalization, unemployment, etc. a credit card can act as a backup to manage your expenses. Credit cards also help you maintain your bank balance for a longer period of time as the bills need to be paid only on a certain date in the billing cycle.

5. Get rewarded for spending

Again, unlike cash or debit cards, credit cards reward you to spend. Be it in the form of discounts, cashback or even referrals, credit cards are great if you spend a lot on popular categories such as groceries, dining, travel, etc. For example, OneCard gives 5X boost in rewards points for the top two categories that an individual spends every month.


Following are some common queries among people who are getting a secured credit card for the first time:

1. Can I switch between a secured and an unsecured credit card

If you are using your secured credit card, you can gradually buildyour credit score which will make you eligible to apply for anunsecured credit card as well. If you already have an unsecured creditcard, you can always switch to a secured credit card by contacting the lender.

2. What happens if I fail to repay bills on my credit card

The lender will follow the regular repayment protocol in case an individual defaults on repayments. In the case of secured credit cards, the lenders may liquidate your FD to recover the pending repayments. However, at all times they will attempt to communicate with you to work out the best possible solution.

3. What is the minimum deposit for a secured credit card in India

The minimum amount depends on the policies set by the credit card issuer. In the case of OneCard, you can make a minimum deposit of INR 5000.

4. Which is better, a secured credit card or an unsecured one

There cannot be a direct comparison between a secured and an unsecured or any other type of credit card. The type of credit card you opt for depends on your specific set of needs and the lender’s application requirements.

About OneCard Secured Credit Cards

With the OneCard + FD combo, your FD amount stays as is, and earns interest as well. This means after a year, your credit limit will increase too. You can start by creating an FD of an amount as low as INR 5000 and up to INR 1 lacs.

💯 Get a credit limit of 100% of your FD

🤑 Earn lucrative interest of up to 7.5%* on your deposit

📱 Get instant virtual card activation

🛍️ Convert your purchases into EMIs with the tenure of your choice

Looking for the top credit cards available in India today? Check out OneCard , to reimagine your entire credit card experience!

*FD interest rates are as applicable on the day of FD creation and decided by the issuing bank


**Disclaimer: The information provided in this webpage does not, and is not intended to, constitute any kind of advice; instead, all the information available here is for general informational purposes only. FPL Technologies Private Limited and the author shall not be responsible for any direct/indirect/damages/loss incurred by the reader for making any decision based on the contents and information. Please consult your advisor before making any decision.