Instant Credit Card Against FD Approval: Know the Important Considerations

Instant Credit Card Against FD Approval: Know the Important Considerations
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Getting an instant credit card against FD is a great solution if your credit score is inadequate or you don’t have a credit history. These cards are also known as secured credit cards, as you offer your fixed deposit investment as security. Applying with this collateral strengthens your application because lenders can recover the dues through your FD investment.

Here are some considerations to get instant approval for a credit card against FD.

Factors that Influence Approval of Instant Credit Cards Against FD

These parameters affect your chances of approval for an instant credit card against FD:

Fixed Deposit Amount

  • Most issuers have a minimum FD value, so if you don’t meet the requirement, you may not get the card.
  • Additionally, if the deposit is of a higher value, the chances of approval are higher since it provides more security and vice versa.
  • The deposit amount is also vital as it influences the credit limit that you can get on the card, with most issuers offering a limit of up to 75%-80% of the value.

Tenure of the Investment

  • Issuers have a minimum tenure requirement for FD credit cards.
  • If your FD timeline isn’t for that period or more, they may not approve your application.
  • The minimum term varies across issuers, but it is generally 6 months.

Ownership of the Fixed Deposit

  • In the case of sole ownership, there are higher chances of approval as it reflects that you have a solid financial standing.
  • In the case of joint ownership, the credit card company may find it difficult to assess your financial standing and may reject your application due to the associated complications.

Fixed Deposit Issuer

  • Some issuers make it mandatory to have a deposit with them. So, your chances of approval are higher if you are willing to open an FD while applying for a card.
  • In case they accept deposits from other institutions but your FD issuer is going through any monetary or legal problems, the approval chances may be low. This is so because it can be riskier for the credit card company.

Personal Financial Profile

  • If you have a strong financial profile, the likelihood of credit approval increases since the credit card company views you as a reliable borrower.
  •  Doing this helps reduce the risk of non-repayment of credit card bills and defaults in the future. Issuers may assess your repayment capacity through:
  1. Your income and employment
  2. Your age and residence
  3. Your existing credit accounts
  4. The tenure of your credit accounts
  5. Your credit utilisation ratio

Tips to Choose the Right Credit Card Issuer

The chances of approval for an instant credit card against FD ultimately depend on the issuer you apply with. Here’s what you can do:

  • Check if your current FD issuer offers a credit card against FD. Remember, being an existing customer often gives you an added advantage.
  • Compare the eligibility and deposit requirements to choose one that you can match easily.
  • Assess the limit, rewards, and other perks you can get to choose a card that suits your needs.
  • Apply with an issuer that has high safety ratings to ensure your investment is secure.

Benefits of Getting a Credit Card Against FD

Check out some pros of opting for an instant credit card against FD:

  • Enjoy quick and easy approval since the fixed deposit serves as collateral, which reduces the risk of the credit card company.
  • Paying your credit card dues on time helps build a strong credit history, improving your chances of approval for other forms of credit.
  • You keep earning interest on your fixed deposit investment, allowing you to enjoy financial growth as well.
  • You don’t need to break your investment to apply for a credit card against FD.
  • These cards generally have lower interest rates and charges than regular credit cards.
  • The application process is quick, with minimal eligibility criteria and documentation formalities.
  • You enjoy perks like discounts, cashback, reward points, complimentary insurance, and more, making it among the best rewards credit card in India.
  • The credit limit that you will get depends on the fixed deposit investment amount, giving you flexibility and control over your finances.

If you want to explore a credit card option with simple eligibility criteria and minimal formalities, you can consider the One Credit Card. You can also go for FD + Credit Card combo and get an instant credit card against FD.

You get to enjoy a credit limit that’s 100% of the deposit value and various benefits, such as a seamless onboarding process, quick activation of your credit card through the mobile app, and high rewards on top spends.

The card also offers easy conversions of your purchases into budget-friendly EMIs and comes with no joining fee, annual renewal fee, or charges to redeem your credit card reward points. Apply now to get started.

Dulquer X Margin

Dulquer X Margin is a passionate writer contributing insightful content on the Mirror Eternally website. His current focus explores the captivating world of interesting articles, ensuring every event leaves a lasting impression.