| Parameter | FD Credit Card (Secured) | Normal Credit Card (Unsecured) |
|---|---|---|
| Eligibility | Students, Businesspersons, homemakers, new-to-credit individuals – all can apply | Only offered to salaried/self-employed individuals with good credit and stable income |
| Chances of Approval | Very high (even with a poor credit score) | Varied from applicant to applicant |
| Collateral | Yes, fixed deposit with bank | No collateral needed |
| Credit Limit | 80-100% of the FD amount offered as credit limit | Depends on income and credit profile of the applicant |
| Benefits | Usually, basic benefits like a decent reward rate & discount with popular brands | Better value-back via rewards/cashback/discount + added perks like lounge access, membership, etc. |
FD Credit Cards are great for:
Why are FD Cards a good option?
- Guaranteed approval despite low or no credit score
- Can start with a small FD; some banks start with even Rs. 5,000
- Get ~90% of FD amount as credit limit (So, Rs. 50K FD >> Rs. 45K credit limit)
Note that if you cannot repay the amount spent on your card timely, it will have a negative effect on your credit score. And if you continue for several months and default on the payment, bank can forfeit your FD.
Pro-tip for beginners who can’t get a normal card:
Start with an FD credit card >> build score with disciplined usage for 6-12 months >> upgrade to normal credit card with better, more focused benefits.
