Credit cards are a boon for all, especially those who are more extravagant than others and wish to spread their expenditure evenly without hampering their monthly savings. But not everyone is eligible for a credit card and that’s when credit cards against fixed deposits come to the rescue.
Secured credit cards are issued by banks against fixed deposits (FD). FD acts as a collateral or security against which the credit card is issued to the depositor. This card can then be used up to the FD amount for credit buying without having to puncture one’s monthly savings. A customer’s creditworthiness is judged on the basis of his/her credit score and credit history.