FD Credit Cards for Bad Credit in India

If you have a low credit score or a limited credit history, getting approved for a regular credit card can be difficult. An FD credit card offers an easier way to access credit because it is secured against a fixed deposit, reducing the lender's risk. As a result, issuers are generally more willing to approve applicants with poor or damaged credit profiles, making them one of the best credit cards for low CIBIL score applicants.

Apart from improving approval chances, FD-backed credit cards function like regular credit cards and can be used for shopping, bill payments, travel bookings, online transactions, and more. The card issuers also report your repayment behaviour to credit bureaus, allowing you to build a positive credit history over time.

An FD credit card can be a suitable option if you:

• Have a low CIBIL score or poor credit history
• Are new-to-credit and looking for credit cards for first-time users
• Are a student looking for FD credit cards for students
• Are a freelancer or business owner exploring FD credit cards for self-employed individuals
• Have faced previous loan or credit card defaults
• Want to improve your creditworthiness before applying for unsecured credit cards or loans

While approval is easier with an FD-backed credit card, not every card offers the same features. Before opening a fixed deposit, compare different options to choose a card that matches your financial requirements and long-term credit-building goals. Consider the following factors before applying:

Minimum Fixed Deposit Requirement

The minimum FD amount varies across issuers and may range from as low as Rs. 500 to Rs. 50,000 or more. Choose a card with an FD requirement that fits your budget without affecting your emergency savings.

Credit Limit Offered

Most banks provide a credit limit of around 80% to 100% of the FD value. A higher credit limit gives you greater spending flexibility and also helps maintain a lower credit utilization ratio if used responsibly.

Annual Fees and Charges

Some FD credit cards are lifetime free, while others charge joining or annual fees. Compare annual fees, interest rates, late payment charges, and other applicable charges before making your decision.

Rewards and Other Benefits

Secured credit cards offer cashback, reward points, fuel surcharge waivers, lounge access, and discounts on online shopping. Selecting a card with useful benefits allows you to earn rewards while building your credit score.

An FD-backed credit card can help you improve your credit score when used responsibly. If you're wondering how to improve CIBIL score quickly, following these healthy credit habits can help you build a strong credit profile over time:

• Always pay your credit card bill before the due date to build a strong repayment history
• Keep credit utilization low and do not max out your credit card frequently
• Paying your bill in full helps you avoid interest charges and reflects responsible credit behaviour
• Make small purchases and repay them on time instead of leaving the card unused
• Applying for several credit cards within a short period can result in multiple hard enquiries and may impact your credit score
• Monitor your credit report to track your progress and identify any errors that may affect your score