Secured card (FD-backed)
Short answer
A secured card is a credit card issued against your own fixed deposit. Because the FD is the bank's security, approval likelihood is very high — though the final decision always rests with the bank — and no income proof is typically required. It is the standard tool for building credit history from zero.
What it means
You place a fixed deposit with the bank; the bank issues a credit card with a limit usually a little below the deposit. If you never pay, the bank recovers from the FD — which is why the risk to them is low and the approval bar is low too.
Why it is underrated
It is the cheapest legitimate route into the credit system, and almost nobody promotes it — because there is very little money in it for anyone selling. For someone with no history, no income proof, or a damaged report, it is usually the best available starting point.
The common mistake
Treating it as a lesser product and using it carelessly. It reports to bureaus exactly like an unsecured card, so a missed payment does the same damage. Use it for small routine spends, keep utilisation under about 30%, and pay in full every month.
After six to nine months
Check your own report free at a bureau's official site. With a clean record, banks often offer to convert the card to an unsecured one or release the deposit — but there is no obligation to accept, and no guarantee it will be offered.
Related
All figures on this page are indicative and dated. Rates and fees differ by bank and change over time. Always verify with your bank's official schedule of charges.
Frequently asked questions
Does a secured credit card build credit score?
Yes. Issuers report secured cards to the bureaus like any other credit card, so on-time payments build history exactly the same way. Six to nine months of clean usage is a common milestone for a meaningful score to exist.
Do I lose the interest on my fixed deposit?
No. The deposit continues to earn its normal interest while it backs the card. You lose access to the money for the term, not the return on it.
Sources
The regulation and official pages this page is checked against. If one of them disagrees with us, it wins.
- Master Direction — Credit Card and Debit Card (Issuance and Conduct) Directions, 2022 — Reserve Bank of India
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Written and checked by the CardSamajh editorial desk · Last reviewed: · How we check this