What is an FD-backed credit card

An FD-backed credit card is a secured credit card which is offered against a fixed deposit by the bank. Unlike regular credit cards, which are extended based on your income, credit rating, and payment history, this card is extended by using your FD as collateral. The credit limit is usually 75% to 90% of the deposited value. This model is more convenient for individuals having no or low credit score as bank risk is insured by the deposit.

Advantages of FD-backed credit cards

The largest benefit of an FD-backed card is that it allows you to build or rebuild your credit history. By making timely payments and keeping credit utilization low, you can enhance your creditworthiness in the long run. Additionally, such cards typically offer facilities similar to

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