October 23, 2025 · 7 mins read
Santosh Kumar
If someone has a low or no credit score, it is difficult or impossible to qualify for a generic credit card. Every credit card issuer looks for individuals with a good credit score. But, a credit score can be built only if you have taken credit, and that’s the reason why different card issuers have come up with the concept of secured or FD-based credit cards in the market. In order to qualify for a regular credit card with a higher credit limit and premium benefits, you can build a strong credit history or a high credit score using an FD-based credit card. To opt for a secured credit card, you would need to open a fixed deposit with the bank or NBFC, and against that, you would receive a credit card. Customers can use this credit card to build up their credit history while earning rewards.
Secured or FD-based Credit Cards are credit cards that are issued by the card issuer against a fixed deposit in order to fulfil the credit requirements of people with a low credit history or no credit history. The fixed deposit amount acts as collateral and reduces the risk of the card issuer in case the cardholder doesn't make payments. The card issuer keeps your deposit in such a case, and if you make payments regularly, you will get the deposit back when you close your card.
Secured Credit Cards, as mentioned earlier, are the best option for those who have no credit history. The following are some of the most incredible benefits and features of secured credit cards:
Easy Approval: Your application for these cards gets approved easily, as the card issuer is taking the fixed deposit. You don't need to worry about the rejection of your application once you have opened the required fixed deposit account with the respective bank, as you will surely get approved for a secured card, provided that you fulfil the basic eligibility requirements.
Build Your Credit Score: You can build or rebuild your credit score with these cards and then get an unsecured card once you build a good credit history.
Earn Rewards: You earn Reward Points on your spending. Some secured cards even offer very good reward rates on some categories and several other privileges like deals and discounts on dining, travel, etc.
Other Features: Secured credit cards also offer some other benefits, like fuel surcharge waivers, zero liability protections, and a number of other benefits under short- and long-term offers.
Also Read: how to get credit card against fd
Also Read: benefits of fd credit card
The IDFC First WoW! credit card is an FD-based credit card, and you must have a Fixed Deposit of at least Rs. 5000 to get this credit card. The card offers reward points on almost all purchases made by you, and the points are valid for a lifetime without any expiration date. You get movie offers, roadside assistance, and much more with the card. A great feature of the card is that it does not charge a foreign exchange markup fee on your international spending.
1: 4x RPs on all spends and reward points do not expire
2: 1% fuel surcharge waiver
3: Rs. 1399 worth of complimentary roadside assistance
4: No forex markup fees are charged on foreign currency spends
Kotak 811 #DreamDifferent Credit Card Rs 5,555 (for 811 saving account customers); Rs 5,000 (for Non 811 saving account customers)
1: Annual fee – NIL (Lifetime Free Credit Card)
2: Credit limit – 90% of the FD amount
3: Cash withdrawal is allowed up to 90% of the credit limit
4: 1% fuel surcharge waiver on all petrol pumps for transactions between Rs. 500 and Rs. 3,000 (Maximum Rs. 3,500 per year)
5: Up to 48 days of interest-free cash withdrawal from the date of purchase made
6: 500 bonus reward points on Rs 5,000 spent in the first 45 days
7: Milestone Program – Earn Cashback of Rs 750 or Get 4 PVR Tickets
Also Read: Is a credit card against FD good for credit score?
1: Step UP Credit Card Rs. 2,000
2: Credit limit of up to 90% of the FD amount
3: NIL annual fee (Lifetime Free Credit Card)
4: Nil joining fee for FDs of more than Rs 5,000 (Rs. 250 + 18% GST for FD of up to Rs. 5,000)
5: Earn an FD interest rate of 6.50% p.a.
6: 1 reward point on every Rs. 100 spent
7: Helps in building/improving a credit score
8: No savings account required
9: Up to 50 days of interest-free credit period
Applying for a credit card against a fixed deposit is a safe and secure way to improve your credit score. They are easy to apply for and come with various benefits and cashback offers.
If you are looking for an HDFC Credit Card against an FD, you can get in touch with the nearest HDFC bank. SBI, Axis Bank, IDFC First Bank, and Kotak Mahindra Bank offer credit cards against an FD of Rs . 5,000 and above.
These cards also allow you to make cash withdrawals for 45 days or more without any interest. Some of them even have no annual maintenance charges and are free to use. You can apply for them either online, through your bank's app, or by visiting your bank's nearest branch.
Also Read: Is a FD credit card good?
A secured credit card is offered against a fixed deposit, with up to 90% of the deposit amount offered as a credit limit. They work in the same way as unsecured cards, with the only difference being in case of defaults, wherein the card issuer can recover the amount using the consumer's fixed deposit.
Usually, secured credit cards are offered to anyone who opens a fixed deposit with the bank. This is the reason why secured cards stand as the best options for individuals with poor credit scores and new-to-credit consumers who are not eligible for unsecured options.
The deposit amount for secured credit cards starts as low as Rs. 2,000.
Yes. Using a secured credit card responsibly over a period can help improve your credit score. In order for secured cards to work in your favour, you must make all bill payments in full and on time.
Yes. Like regular unsecured cards, secured credit cards also come with a joining and annual fee, which varies depending per the card variant. Other fees and charges like late payment penalty, over limit fee, finance charges, forex mark-up fee, etc., will also be applicable.
Once you maintain a good repayment pattern and show responsible credit behaviour, you can try applying for an unsecured card from the same issuer. However, the approval depends on a lot of factors and the internal policies of the bank.
Build and Maintain a 750+ Credit Score
