Obtaining a credit card is no longer as difficult as it once was. Even if you do not have a regular income or a high credit score, there is still an easy and smart option for you—a credit card against fixed deposit. This type of card gives you all the benefits of a regular credit card, and in some cases, you can even get a free credit card without any annual fees. But before you apply, it is important to understand who is eligible and what you need to get started.
What Is a Credit Card Against Fixed Deposit?
A credit card against fixed deposit is a secured card. The bank issues this card by using your fixed deposit (FD) as security. This means that your FD acts as a guarantee for the bank if you miss any payments. You still earn interest on your FD, and you get a credit limit based on the amount you deposit.
This option is ideal for individuals just beginning their credit journey or seeking to rebuild their credit score. The best part? You can often get a free credit card, especially if you maintain the FD for a set period and pay your dues on time.
Why Choose a Free Credit Card Over an FD?
A free credit card means no joining fees and no annual charges. Some banks offer this benefit if you open a fixed deposit above a certain limit—usually ₹10,000 or ₹20,000. This makes it a cost-effective way to get a credit card without worrying about extra fees. Plus, since your FD backs it, the approval is quick and straightforward.
Eligibility Criteria You Need to Meet
Now let’s focus on the main part: eligibility. To apply for a credit card against fixed deposit, here are the basic requirements most banks look for:
1. Age Requirement
You must be at least 18 years old. Some banks prefer applicants who are 21 years of age or older. There is no upper age limit in most cases, as long as you can provide the required documents and have an active fixed deposit.
2. Fixed Deposit with the Bank
You need to open a fixed deposit with the same bank where you are applying for the credit card. The minimum FD amount usually starts at ₹10,000, though this may vary by bank. The FD must also have a minimum lock-in period, often around six months or one year. Without this FD, you cannot get the credit card against fixed deposit.
3. KYC Documents
You must complete the Know Your Customer (KYC) process. This includes submitting your PAN card, Aadhaar card, and sometimes a passport-sized photo. If your KYC is already completed with the bank, the process becomes even faster.
4. No Need for Credit History
One of the biggest advantages is that you do not need a credit score to get a free credit card against FD. Even if you have never used a credit product before, your FD is enough to get approved. This makes it a great first step toward building a strong credit profile.
5. Clean Banking Record
While credit history is not required, banks still prefer applicants who do not have a history of bounced cheques, unpaid loans, or fraud alerts in their records. Having a clean banking record helps in faster approval.
Things to Keep in Mind
- Your FD will be linked to your credit card and held as security.
- If you fail to pay your dues, the bank reserves the right to recover the amount from your fixed deposit (FD).
- Always make payments on time to avoid hurting your credit score.
- Read the terms and conditions to ensure the free credit card status is maintained, especially if there are conditions such as minimum spending or fixed deposit (FD) tenure requirements.
How to Apply
Once you meet the eligibility criteria, applying is very easy:
- Go to the bank’s website or branch.
- Open a fixed deposit.
- Select the ‘Credit Card against Fixed Deposit’ option.
- Submit your documents and complete the Know Your Customer (KYC) process.
- Wait for the card approval and delivery to arrive.
Most banks deliver the card within a week if all steps are completed correctly.
Conclusion
Getting a free credit card is no longer difficult, especially when you opt for a credit card against fixed deposit. You enjoy all the benefits of a regular credit card without the need for a high income or existing credit history. Please ensure you meet the eligibility criteria and keep your FD active throughout the card period.