Have a Savink account in the bank, but you can’t get a credit card on it? Have made many rounds of banks, but banks are not agreeing to give credit cards. If so, don’t worry. If you have made a fixed deposit FD in any bank, then you can take big benefits on it. You can easily get a credit card on that FD. This work will be done easily and banks will not even refuse. A credit card is not just a means of convenience for your spending, but it also improves your credit score so that you can take a bigger loan later.
You know that credit cards based on FD are also issued. This is a fully secured credit card. The bank which will issue you the credit card will enter the FD money as collateral or security and will easily issue the credit card on the same basis. Since the minimum FD amount is Rs 10,000-20,000, your credit card will also be formed on the same basis. The amount in the FD, the credit card limit will be available.
Card making process
Most banks give 75-85% of the FD amount as a credit limit. Axis Bank gives 80% of the FD amount as credit card limit. Any bank sees a minimum FD tenor of 6 months for issuing credit cards. In Axis Bank this period is 1 year. If you do not repay the outstanding credit card, the bank will deduct the same from the FD amount. Since the credit card is linked to the FD, in case of emergency, the card has to be canceled before the FD can be redeemed. Only after this you will be able to withdraw full money from FD.
Features of credit cards available on FD
- Minimum fixed deposit amount should be Rs 10,000-20,000, then only credit card will be issued
- 75-85% of the amount deposited in FD is available as credit limit. The more money deposited in the FD, the higher will be the credit limit
- The credit card available on FD has got the status of a secured card, so it takes the least paperwork to issue a credit card. Minimum documents required for card issuance
- On the secured credit card, the customer gets an interest free period of 48-55 days. If the customer pays the bill within this period, then he will not be required to pay interest. This period is 50 days in Axis Bank
- The same kind of rewards and points are available on regular credit cards, the same facility is also available on secured or FD credit cards. You can also take cashback offer on this
- The cardholder will also continue to earn interest on his Fixed Deposit and will continue to enjoy credit card purchases. In a way it’s a double advantage
Advantages of Secured Credit Card
To get this card, the customer does not need to provide income proof. Apart from job-professionals, homemakers, students and people from the unorganized sector can also get this card made. Some banks keep the minimum age limit for getting this card as 18 years, while some banks keep it 21 years. Having this credit card will improve your credit history because you will be able to pay bills etc. with this card on time. This will help in improving the credit score. The next time you go to take a personal loan, auto loan or home loan, you will get the benefit of credit score. There is no problem in increasing the limit of credit card taken on FD and banks do this work easily.
