Being aware of your options in the transforming world of finance is crucial in saving money. A secured credit card is a great alternative if you are facing difficulty in getting unsecured credit easily. You can enjoy the perks, earn interest on your investment and build your credit score with this type of credit card.
Secured cards are backed by a fixed deposit (FD), which acts as collateral with the bank that offers you this card. Its value is the basis of your total credit limit and you can usually get credit up to around 80%-90% of your FD amount.
If you do not have an adequate credit history or no credit history at all, you can enjoy the benefits of a secured credit card. The documentation is less, and the application process is easier than regular credit cards. This is because you do not need to submit income documents and worry about a good score to get approval.
Here are some of the top secured credit cards to help you choose easily:
- IDFC First Wow! Credit Card
Now, you can earn money as interest up to 7.5% on your FD and enjoy credit card facilities with IDFC’s First Wow! Credit Card. The card is savings-savvy and has no joining or annual fee. You can enjoy offers from a range of brands such as Zomato, Domino’s, Marriott and more. You can also get 50% off on booking moves on BookMyShow with this credit card.
Features:
- Earn up to 4X rewards on spending ₹150
- Enjoy a credit limit up to the entire FD value
- Get 1% fuel surcharge waiver
- 43.8% interest rate on unpaid dues
You can also get a digital variant of this card and link it to your UPI ID at a joining fee of ₹199. This helps you pay digitally right through your smartphone and earn 3X reward points on all transactions.
- One Credit Card
The One Credit Card offers a convenient and rewarding credit usage journey. It has a regular and FD-backed variant, and with the latter, you can enjoy the benefits of a credit card with minimal documentation. This card has zero joining and annual fees, and you can get it by starting your FD investment from just ₹5,000.
By partnering with banks like SBM Bank and Federal Bank, One Credit Card offers this secured card to those without a credit score too. You can enjoy a range of deals with this card and earn up to 5X rewards on the top two spending categories every month.
Features:
- Earn reward points on every transaction
- Use the powerful One Credit Card App to redeem rewards and set spending limits
- Lowest forex fee of just 1%
- 45% interest rate on overdue balance
Some of its other advantages are that your reward points never expire and you can even enjoy fractional rewards and say goodbye to rounding off. It offers great discounts on food, dining, education, utility bills, entertainment and shopping. You can apply for an instant credit card online and start enjoying the benefits immediately after approval.
- Step Up Credit Card
Step Up Credit Card is a co-branded secured credit card offered by SBM Bank and Paisabazaar. You can avail of this credit card even if you have no credit history and no income proof.
Your credit limit can go up to 90% of the FD amount, and you can book an FD of just ₹2,000 to get started. This card comes with a joining fee of ₹250 for FD amounts up to ₹5,000. Avoid this fee by depositing more than ₹5,000 in the bank. You can earn a 6.50% interest rate on the FD, too and boost your savings.
Features:
- Earn 1 reward point on every ₹100 spent
- Interest-free period of up to 50 days
- No renewal fee
- Increase your FD limit right away by topping up your FD investment
- Close your FD anytime without any lock-in
- 42.58% Annual interest rate on unpaid balance
Get offers from brands like Ferns and Petals, OYO, Lifestyle and more with this card. The Paisabazaar app also makes it easy for you to manage this card, convert bills into EMIs and more.
- SBI Card Unnati
Free to use for the first four years, this credit card from SBI Card targets your basic needs and offers a range of benefits. You can get it by depositing a minimum of ₹25,000 with SBI. While it doesn’t come with any joining fee, you will need to pay an annual fee of ₹499 from the fifth year of usage.
Features:
- Earn 1 reward point against every ₹100 spent under certain categories
- Save ₹100 on fuel surcharge every month
- Get ₹500 as cashback on spending ₹50,000 or more in a year
- 33% Interest Rate on overdue amounts
This card offers features such as ATM withdrawal and EMI facility via Flexipay, which allows you to pay bills over ₹2,500 in installments. While it doesn’t offer a credit card loan, it permits you to transfer the balance of other cards and repay it in EMIs.
As you can see, FD-backed credit cards are great for those who:
- Want to improve their credit score
- Want to build a credit history from scratch
- Do not have a job or steady source of income
- Are just joining the job market
- Are students who want to get credit experience
- Cannot offer income proof
If you’re looking for the ideal secured credit card, consider the features of the available options and compare them. The One Credit Card is a premium card that offers you this benefit along with a high rate of interest, so you can enjoy credit along with an interest payout.
The One Credit Card app also has a range of features that can maximise your benefits. Not only can you use it to set spending limits, but also find offers near you via GPS and plan international vacations with its holiday planner. Apply now to explore all its benefits.
