Gone are the days when most individuals shied away from Credit Cards. In today’s age, users of Credit Cards benefit from them for various factors. Credit Cards come in handy not only during cash crunch but also for increasing CIBIL scores to help borrowers get the best loan terms in the future. However, one must meet the minimum income requirements or have a decent CIBIL score to apply for a Credit Card.
If you have a low CIBIL score and income, don’t get demotivated because you can get a lifetime free Credit Card if you opt for it against your fixed deposit. Fixed deposits have always been popular in Indian households, as banks provide impressive FD rates to make investors earn great returns. Now, imagine how beneficial it would be for your financial future if you got access to a lifetime free Credit Card through your fixed deposit.
Let’s discuss why applying for a Credit Card against a fixed deposit is a great idea.
How Does a Credit Card Against FD Benefit Its Users?
Having a fixed deposit can benefit you in various ways. Once you opt for a Credit Card against your fixed deposit, commonly regarded as a “secured Credit Card”, you will unlock facilities unavailable to users with regular Credit Cards.
Here are some ways users benefit from having Credit Cards against FD:
● Eliminates Exhaustive Paperwork
We all know how exhausting the application process for Credit Cards or most other bank services can be. The extensive paperwork and verification process take days to complete. This is not the case with secured Credit Cards because very little paperwork is involved.
● Improves CIBIL Score
You can use your secured Credit Card to build your CIBIL score, just like a regular card. Building a good CIBIL score will be much easier because interest rates are lower. Once you have a decent CIBIL score, you can easily apply for loans and negotiate for the best deal.
● Provides Cashbacks and Exciting Offers
Many secured Credit Cards, such as the 811 Credit Card, offer different forms of cashback and provide discounts on purchases made with the card. So, besides increasing your credit score, you can also use an 811 Credit Card to avail yourself of exciting reward points.
Moreover, some e-commerce websites and retail stores now allow buyers to purchase using their Credit Cards. Many banks also provide an interest-free period when you first receive your secured Credit Card.
● Offers Significantly Lower Rate of Interest
Many users frequently avoid using Credit Cards because of the concern for crippling interest rates. The interest rates on most commercial Credit Cards are so high that it is difficult to make timely payments if one does not have a consistent source of income. This is not an issue for those with Credit Cards issued against FDs because the interest rate is much lower.
● Gives Approval Even with Little or No Proof of Income and a Low CIBIL Score
- Do you make a meagre living as a salaried professional?
- Are you someone who is launching their first business?
- Do you stay at home to manage the household?
- Is it impossible to obtain proof of income?
- Do you possess a poor CIBIL score?
If you have answered yes to any of the aforementioned questions, obtaining a regular Credit Card will be a hassle for you. Thanks to Credit Cards issued against FD, you won’t be required to show your income documents during the application process. You can obtain a Credit Card against your fixed deposit, as your lending institution will use the fixed deposit amount as their security amount. Therefore, you use your funds, which you return to the bank later.
Conclusion
A secured Credit Card ticks all the boxes for those with low income or CIBIL scores. It can be a precious financial tool for anyone planning to strengthen their credit history with the minimum effort. With smart financial management tools, advanced credit monitoring, and many other features, users get all-around security; a secured Credit Card truly does justice to its name. Get yours today and build a secure financial future as soon as possible.
