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Credit Card: Now, you can get a credit card even with a poor CIBIL score or no credit history. Learn about the features of FD-backed credit cards and the complete application process.

Credit Card: If you have a poor CIBIL score or haven't taken out a loan or credit card before, you no longer need to worry about obtaining a credit card. SBM Bank and Paisabazaar have launched an FD-backed credit card that does not require a good credit score to acquire.

The standout feature of this card is that you can obtain it by making a fixed deposit of just ₹2,000. This means you can get a new credit card even if you have a poor CIBIL score or no credit history.

What is an FD-backed credit card?

With an FD-backed or secured credit card, your fixed deposit serves as security for the bank. Consequently, the bank faces minimal risk, allowing it to issue cards even to customers with low credit scores.

Start with just ₹2,000

To get this credit card, you need to open a fixed deposit (FD) of at least ₹2,000. In return, the bank issues you a credit card. Typically, the card's credit limit can be up to approximately 90% of the FD amount.

Earn interest on the FD too

Another benefit of this scheme is that you continue to earn interest on your fixed deposit. According to reports, customers can earn up to around 7% interest on the FD. This means you get the convenience of a credit card while simultaneously growing your savings.

How does it help improve your credit score?

Using the credit card responsibly and paying bills on time helps build your credit history. Over time, this can improve your CIBIL score. That is why such cards are considered useful for new customers and those with poor credit scores.

What is a credit score?

A credit score is a figure that indicates how responsibly you have repaid previous loans or credit. Banks and financial institutions approve loans and credit cards based on this score; applications are often rejected if the score is poor.

Who is it beneficial for?

This card is highly beneficial for individuals with a poor CIBIL score, those with no credit history, or students obtaining a credit card for the first time. It is also useful for those looking to build or improve their credit score.