Owning a credit card makes it easier to make instant contactless transactions. Not only do they aid in cashless purchases but they also offer benefits such as cashbacks and discounts. However, not everyone can be eligible for online credit cards. Each credit card comes with its specific criteria. In case you do not have the required annual income or have a poor credit history, your credit card application might get rejected. However, there is an easy solution to this problem. As opposed to a traditional credit card, you can instead avail a credit card against a fixed deposit (FD).
What is a Credit Card Against FD?
A Credit card against FD is a type of credit card wherein you can decide the credit limit against any FD that you have. Thus any purchase you make with the credit card will be deducted from the FD amount. Thus, in a way, your FD acts as collateral for the bank to recover the balance. The card is ideal for people who have low or unstable income or poor credit history.
Benefits of Getting a Credit Card Against FD
How to Apply for a Credit Card Against FD?
To apply for such a credit card online, you need to first have a fixed deposit with the bank. If you do not have an existing FD, you will have to open a new one and then apply for a credit card against that FD. However, please note that if your fixed deposit is already marked as collateral for any past loan or overdraft, you cannot use the same fixed deposit for availing a credit card.
Features of 3 Best Credit Cards Against FD