Choosing the best secured credit card in India should be a priority as it allows you to make the best of the facility. Deciding which card is the best depends on various factors such as eligibility criteria, fees, reward programs, the availability to upgrade your card, and more. 

These requirements for a secured card vary from one issuer to another and should be carefully considered. That said, here are some of the most important factors to consider when choosing an FD-backed credit card. 

Eligibility Criteria 

Putting up a deposit as collateral eliminates the issuer’s need to check your creditworthiness. However, they still may have certain conditions or requirements that you will need to meet to qualify for a credit card on FD. 

This is one way to ensure that you have the financial capacity to repay the credit on time. These requirements vary across issuers but generally include the following: 

• You must be over the age of 18 years
• You should be a resident Indian
• You should have income that matches the minimum requirement
• You should be able to put up the required deposit

Checking these criteria before you apply is crucial as it will enable you to apply with the right issuer. This will help ensure you have a seamless application process and higher chances of approval. 

Minimum Deposit Amount

When applying for a secured card, the most important thing to consider is the amount in your fixed deposit account, submitted as collateral. Most issuers have a minimum and maximum limit for such deposits. 

Once deposited, issuers will give you a credit card with 75% to 100% of your FD amount, depending on their policies. Ideally, you should choose an issuer that offers a high limit as it will help you access maximum credit. However, make sure you select a feasible amount as you will not be able to make a premature withdrawal until the term ends.

Grace Period 

Issuers generally charge interest at a fixed rate on the outstanding bill balance. However, you don’t need to pay this until after the grace period ends. Therefore, you must check the length of your issuer’s grace period before applying. Ideally, go for one with a longer period, as it will help you access interest-free credit for a longer time.

Reward Program

Issuers offer points as an incentive to the cardholder for using the credit card. These are offered depending on the type of card you have, your issuer, your transaction types, and more. So, choosing a card with a program that aligns with your spending habits is a smart way to extract value from the card. 

Fees and Charges 

The fees and charges are important factors to assess when looking for the best secured credit card in India. Ideally, the best option will have the lowest costs to avoid adding to your financial burden. Here are a few fees to check and compare before applying:

• Annual and joining fees 
• Interest rate 
• Foreign transaction fees 
• Reward redemption fees 
• ATM withdrawal fees 
• Card replacement fees

Understand that just because you have a low credit score does not mean you deserve a subpar credit card. So, opt for the one that gives you the highest benefit without elevated prices.

Upgrade Options

Once you have improved your credit score enough, you can close your credit card on FD and get your deposit back. However, some issuers also allow you to upgrade to an unsecured credit card as a replacement. This option allows you to swiftly transition into an unsecured credit facility, eliminating the hassle of reapplying for a card. 

Credit Bureau Reporting

Most secure credit card holders apply for them to build a credit score and credit history. When you pay your credit card bills on time, issuers report this good credit activity to the credit bureaus. In India, there are four main credit bureaus: 

• TransUnion CIBIL 
• Experian 
• Equifax 
• CRIF High Mark

If your issuer does not report to any of the credit bureaus, this should be a deal breaker. Therefore, verify this information on the issuer’s website before applying.

Considering these points, getting a credit card on FD is the best option to increase your credit score. One such card is One Credit Card, with an excellent reward program, easy-to-meet eligible criteria, and many other benefits. 

Applying for OneCard’s FD + credit card combo, you can enjoy instant virtual card activation with your deposit. Moreover, it gives you up to 100% of your deposit amount as a credit limit without joining or annual charges. Apply online to start your journey towards better creditworthiness.