Posted on: January 31, 2017

Secured Credit Cards for those with Poor Credit

Secured credit cards

Credit cards have become ubiquitous and their use is expected to only grow even further as India moves along the road of demonetisation. But for those with no credit history or low credit score, getting a standard credit card can be quite a hassle. Fortunately, in such cases, a secured credit card can help you establish and/ or improve your credit score. Unlike standard credit cards, which are unsecured debt, secured cards are issued against fixed deposits (FD). The maximum credit limit of a secured credit card is equal to the value of the fixed deposit held by the bank. This deposit covers the card issuer from any defaults made by the card holder and the card holder also receives interest on the deposit. Due to the reduced risk to the card issuer, secured cards are issued to people with bad credit score as well as to others who do not qualify for the standard credit cards.

Here are  3 leading secured credit cards to opt for in India:

Axis Bank Insta Easy Credit Card
Joining Fee: Rs.500

The joining fee will be refunded back to you on spendingRs.5000 within 45 days of the card being issued.

You can get this card over-the-counter with minimal documentation with credit limit of up to 80% of your FD account principal. The card comes with guaranteed approval feature, which means your credit card application will be approved irrespective of your credit score as long as you can fulfil all other eligibility criteria.

Additional benefits:

  • Interest free period of up to 50 days for all your transactions.
  • Enjoy fuel surcharge waiver (2.5%) for the transactions done between Rs.400 and Rs.4000
  • Convert big-ticket purchases over Rs.2, 500 into monthly EMIs. 
  • It is a chip card which cannot be duplicated and reduces the risk of fraudulent transactions.
  • You can get a variety discounts and cash back offers on Axis Bank partner merchant’s websites when using the Axis Bank Insta Easy Credit Card.
SBI Advantage Plus Credit Card
​Joining Fee: Rs.500

This card is globally accepted and lets you improve/build your credit history to get hassle-free loan sanctions in the future. The credit limit keeps increasing and you can get up to 85% limit of your FD account. The card offers you more savings as it comes with attractive interest rates.

Additional benefits:

  • Get up to 100% cash withdrawal limit on your SBI Advantage Plus Card.
  • Flexipay feature enables you to convert your big transactions into monthly EMIs.
  • Easy Bill Pay feature ensures that you always pay off your utility bills on time.
  • Easy money feature lets you withdraw money from various ATMs whenever and wherever you want.
DCB Payless Credit Card




Joining Fee: NIL

DCB Payless card offers a host of exciting offers and benefits. As the name suggests, it is a card which enables you pay less and thus save more! This card offers attractive low interest rates of 2% per month and high credit limit of up to 90% of your FD amount.

Additional benefits:

  • 45-50 free credits for all the spends and cash withdrawals
  • Zero fuel surcharge at all the petrol pumps across the country up to annual purchases of Rs. 20,000.
  • No processing fee on credit card balance transfer
  • Complimentary personal accident insurance of up to Rs. 1 lakh and lost card insurance of up to Rs. 1.5 lakhs.
  • Get welcome cash back worth Rs.350 on spending of Rs.5000 using your DCB Payless card in the first 3 months

Comparison of the Secured Credit Cards offered by Axis, SBI and DCB

Comparison Criteria Axis Insta Easy SBI Advantage Plus DCB Payless
Annual Fees Rs.500 Rs.500
Credit Limit Up to 80% of FD Up to 85% of FD Up to 90% of FD
Cash Withdrawal Limit Up to 100% Up to 100%  Varies from customer to customer
Fuel Surcharge Waiver 2.5% fuel surcharge (applicable on transactions between Rs.400 to Rs.4000) No fuel surcharge waiver available 2.5% fuel surcharge (applicable on annual spends up to Rs.20,000)
Finance Charges 2.50% p.m. Up to 2.25% p.m. 2% p.m.

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