Step UP Credit Card is a secured credit card issued by SBM Bank (India) Ltd. with Paisabazaar as co-branded partner. The card is issued against fixed deposits opened with SBM Bank (India) Ltd. It has been designed for building/rebuilding credit scores of consumers lacking credit access due to NIL or low credit score. Additionally, it also allows Step UP card users to earn @6.50% p.a. from their SBM FDs – one of the highest FD rates available for the FD tenure of 390 days.
Just like regular credit cards, payments made through Step UP Credit Cards are reported to the four credit bureaus — CIBIL, Equifax, Experian or CRIF High Mark. These payments are then used by the credit bureaus for calculating credit scores of Step UP card users. Thus, those who use their Step UP Credit Cards for making payments and repay their card bills by their due dates can steadily build/improve their credit scores.
Moreover, credit bureaus consider the credit mix (i.e. the ratio of secured and unsecured credit facilities) of consumers while calculating their credit scores. Those having a higher proportion of secured credit in their credit mix are scored higher. As Step UP Credit Card is a secured credit card, availing it would increase the proportion of secured credit in your credit mix and thereby, improve your credit score.