By OneCard | December 15, 2022
You may wonder what can one do in such a situation. But here’s how you can break this paradox with OneCard’s FD+credit card combo!
A secured credit card is nothing but an assured card issued even without any credit score. It is an especially great option for those who have a low credit score or zero credit history. It works just like a regular credit card, the only difference being that it is backed by an FD.
OneCard’s FD+credit card combo is one such type of secured credit card. All you need to do to apply for it is simply create an FD in the OneCard app for any amount between 2000 Rupees and 1 Lac. Your FD works as a refundable security deposit that backs your OneCard and also earns you high interest rate.
Create an FD within the limit provided by the lender
It may seem that credit cards against FD should have no restrictions on the credit limit as the lenders have collateral with them. But due to credit card guidelines, lenders put both a lower limit as well as an upper limit on the FD amount. The minimum limit for the FD can be as low as Rs. 2000 while the upper limit can be as high as Rs. 25,00,000 in the case of some lenders.
Fulfill the minimum and maximum (if any) age requirement
Generally, FD credit cards are not issued to minors i.e. individuals below the age of 18 years). Some lenders also have a maximum age limit to be eligible e.g. 60-70 years of age.
Keep your updated KYC documents handy
This typically includes documents like identity proof, address proof, PAN card, income proof and others.
Credit limit of 100% of your deposit
Chance to improve your credit score & build a credit history
Earns great interest on your deposit
Comes with a virtual card that you can activate instantly
Lets you convert your purchases into EMIs with the tenure of your choice
If you have a low credit score either because you are new to credit or you have had some financial problems in the past, getting an unsecured credit card can be tough for you. This is simply because lenders have to do a lot of risk assessments before handing out loans and credit cards. However, not all is lost. You still have some of the following options:
A prepaid card functions more like a debit card. You can only spend the money you have loaded into your account. Once you have used up the loaded amount, you’d need to re-load the card to use it again. Whereas with OneCard + FD combo, your FD amount stays as is, and earns interest too. Which means after a year, your credit limit will increase too.
Your payment history is not reported to the credit bureaus in the case of prepaid credit cards. So unlike FD+OneCard, a prepaid card doesn’t help establish a credit history. OneCard’s FD+credit card on the other hand comes helps you improve your credit score.
Cash advance in the form ATM withdrawal
Adding money to wallet
Getting a personal loan against your credit card
However, please do go through the charges and terms and conditions associated with each of the above options to avoid last-minute surprises.
If you are interested in getting an FD-backed OneCard, download OneCard and get started.
**Disclaimer: The information provided in this webpage does not, and is not intended to, constitute any kind of advice; instead, all the information available here is for general informational purposes only. FPL Technologies Private Limited and the author shall not be responsible for any direct/indirect/damages/loss incurred by the reader for making any decision based on the contents and information. Please consult your advisor before making any decision.