January 24, 2026 · 5 mins read
Santosh Kumar
An FD-backed credit card can be a way for a housewife to establish a credit score, provided the card is used prudently and the balance is paid in full on time. An FD-backed card is tied to a fixed deposit, so banks do not need to see proof of income or credit history before issuing a card. Therefore, all types of housewives can get access to this type of card, even if they have no documentable income or employment, as they can be the financial manager of the household. Just like any other credit card, activity on an FD-backed card will be reported to credit bureaus. This includes spending behaviour, the amount of outstanding debt and how one pays their bill.
Whenever a housewife regularly uses her FD-backed credit card and pays all of her debts on or before their due dates, she creates a positive record of repayment. Over time, this will demonstrate to creditors that the housewife is a reliable borrower and build a history of consistently being a good borrower. Establishing a good history will help improve her credit score over time. Small payments made on a regular basis that are paid on time will lead to the continued growth of her credit score.
Credit utilisation is the total dollar value of open lines (credit limits) that are being used. For managing one's finances through low and manageable credit utilisation, controlling the amount of credit that can be accessed has positive effects on one's credit rating. Most FD-backed credit cards are tied to the amount of money on deposit; therefore, they limit the amount of excess borrowing available to customers by setting an upper limit on what can be borrowed. Because these cards have an inherent control mechanism, it is easier for customers to keep their utilisation within acceptable levels, thus allowing them to establish a higher credit rating.
Making late payments affects one's credit rating, even though they are made only a few days late. Even if a customer makes a late payment, they will still have a record of such action, which automatically lowers their credit rating. If a customer's history of late payments continues to build over time, the issuing bank has the right to apply the money deposited into the FD to repay any outstanding balances. The negative credit history will remain after the payments have been made and will remain as a debt until repaid. Customers need to maintain discipline using these types of credit cards for them to be effective as tools to build and enhance their credit history.
Many housewives will find that obtaining a credit card through an FD will assist them in developing their financial identity and ensuring that they will have a greater degree of independence. As a result of developing a good credit rating, housewives can eventually apply for a loan, access cards with higher limits, or share credit lines and credit histories with family members, which will lessen their reliance on family members for obtaining financial approval.
Also Read: How a ₹2,000 FD Credit Card Helps Build Your CIBIL Score Fast
You are not going to increase your credit score overnight; it takes a long time to develop through continuing to do things the same way. If you want to develop a good strong foundation for your credit history, it is important to use your card moderately, pay your bills on time and only borrow what you need.
For many first-time users of credit, it can be hard to understand how it works. This is why services like ZETAPP exist to help educate users on how to use their credit and manage their payment and repayment cycles, as well as the long-term implications of their credit history.
Also Read: Best Credit Cards In India You Can Get On A ₹2,000 FD (2026 List)
An FD-financed credit card is treated the same way as any other type of credit card. It will be part of your overall credit history.
It typically takes several months (3-6 months) of consistent usage and timely repayment on the credit card for your credit score to begin developing.
No, the FD is simply collateral; it does not directly impact your credit score. Your credit score reflects how well you are using and repaying the credit card.
Build and Maintain a 750+ Credit Score
