Friday, February 3, 2023

How to get a credit card on FD


Fixed deposits (FD) are considered one of the safest investment decisions that you could go for. But did you know that you could also use your FD and get a credit card on the back of it? It is especially useful if you have no credit history or a very poor CIBIL score. Also, getting a regular credit card needs you to have the following: a stable income source, a good credit score, and many more factors. However, in this case, you simply need to have a minimum FD with the bank and meet some regulations. 

Interested? Then, sit tight as we explain how you can get a credit card on your FD very easily.

What is meant by a credit card on the back of a fixed deposit?

Let us first go through its meaning. In its very essence, these credit cards are technically known as secured credit cards. That is because they are secured on the back of your fixed deposit in the bank. Now, individual banks have the authority to determine how much fixed deposit is required before you can avail of a credit card on the back of it. In addition, the total amount that is deposited in your FD account is also linked to the total credit limit on your credit card.

Hence, the more money you deposit in your FD, the more credit limit you will get. Most banks usually provide their customers with 75-85% of their FD as the credit limit. 

How does my credit card on FD work?

The biggest benefit of applying for a credit card on the back of your FD is that you will never have to show any income proof. However, this sounds quite obvious but, you will only be able to get the credit card on the back of your FD from the bank where you have opened an FD account. 

Therefore, in case you ever default on the payment of your credit card amount, the bank holds the authority to break your deposit. However, the bank will simply not go ahead and do it without your knowledge. Instead, they will remind you to pay your defaulted amount via all the possible channels they can.

On the brighter side, if you repay your outstanding dues every month, spend within the limits and come up with a regular spending pattern, the bank will also delink your FD. However, this will take some time, preferably a period of 1 to 2 years.

Which features make getting a credit card on FD worthwhile

Here are some of the features of a secured credit card:

  • The minimum FD amount is usually around ₹10,000 to ₹20,000. Hence, it is quite affordable.

  • You will need minimum documentation for it, which is a huge bonus.

  • The minimum tenure of the FD is also quite low. It can be six months in some cases.

  • Interest-free period for about 45 to 55 days on the credit cards.

  • Multiple rewards are associated with a credit card, which can help you make a lot of savings.

Now, if you are looking for a credit card that has lots of rewards, then the Axis Bank credit card can do wonders for you. 

Get an Airtel Axis Bank credit card

The Airtel Axis Bank credit card has plenty of cashback offers, rewards, rebates, airport lounge access benefits and more. Apply for your Axis Bank credit card right away! 

Also, if you want to learn, about checking your cash limit in credit card, then Airtel has it covered for you!


Author: verified_user