To get the best secured credit card in India, you need to do extensive research and compare multiple options available in the market. Why? Because the features and benefits across and analysing your needs is the way to find the one that offers what you need.
Getting a credit card against FD is suitable for those without a credit history and score and those with inadequate scores to qualify for an unsecured card. Here’s an overview of other factors you need to consider before clicking on ‘Apply Now.’
Minimum Security Deposit Required
Issuers offering the best secured credit card in India require you to pledge an FD as collateral in case you default on your credit card payments. However, they set a minimum FD value you need to meet, which varies across issuers.
Since you cannot get a card without meeting this requirement, looking at this aspect is one way to shortlist cards you can choose from. The minimum value can start at ₹5,000 and go up to ₹20,000 or more.
Credit Limit
Another factor to help you decide your ideal credit card on FD is the credit limit offered. Generally, this limit depends on your deposit amount, as credit card providers offer a percentage of your FD amount as your limit.
This percentage varies from one credit card company to another. Choosing an issuer offering a higher limit is better as you can use your investment in the best possible way.
Fees and Charges
The one-time charges and annual fees that you pay on your credit card add to your financial responsibility. Therefore, choosing the card with the lowest costs is beneficial for your financial health.
Issuers also offer an interest-free period, and going for one with a higher period is better as it offers better flexibility. You must also consider the interest that is applicable after this period ends.
The terms and conditions determine how much you will pay as late fees and other costs of delayed payment. Having a card with a lower interest rate is better as you can avoid paying exorbitant costs if you cannot clear the bill on time.
Perks and Rewards
In addition to instant access to cash, the best secured credit cards in India also come with a range of benefits that make every payment rewarding. These benefits vary across cards and also the type of transactions you make.
Familiarising yourself with these perks will allow you to choose a card that best aligns with your lifestyle, enabling you to make the most of your funds. Some common benefits that you can enjoy are:
- Rewards on utility bills and other payments
- Attractive discounts on payments at partner stores
- EMI option on your online and offline purchases
- Waivers on annual or joining fees upon meeting milestones
- Exclusive rewards and benefits on specific categories (travel, shopping, etc.)
Eligibility Criteria
Finally, the most crucial factor that decide if you can apply for a credit card is the issuer’s eligibility requirement. While you can quickly apply for a credit card on FD, you must meet the eligibility criteria to get approval.
If you meet all the requirements, then the application process is smoother and quicker. If you don’t meet these requirements and go ahead with your application, the issuer may reject it, which can also hurt your credit score. Here are the general eligibility requirements you need to meet:
- Must be above 18 years of age
- Must have all the required valid documents
- Must have a deposit of the required minimum value and tenure
- Must be a resident or non-resident Indian
Option to Switch
Getting a credit card on FD is ideal when you don’t have a credit history or score that makes you eligible for unsecured cards. This makes secured cards a temporary solution to build your creditworthiness, and therefore, you need to choose a card that helps you make the transition to an unsecured credit card easy.
Shifting to an unsecured credit card, when the time is right, is crucial because these cards come with more extensive benefits than secured ones. Confirm with the issuer the terms and conditions under which you would be eligible to switch to unsecured cards before you apply.
Checking all the essential details of the card and card provider is one way to ensure that you choose from the best secured credit card in India. With the right use, these cards help you learn financial management and build healthy credit habits, making them a great option.
One Credit Card is one such secured credit card that can help you achieve the same goals. You can easily track your expenses and avoid overspending with this card. It also allows you to save more with discounts and rewards on your spending. Apply now for a better credit experience.
