Check Facts Before Applying for Credit Card Against Fixed Deposit

Some of the banks in India do offer credit card against the fixed deposits of the investors. But is it ideal to go for it? As generally, banks do a thorough analysis of the credit score of the applicant, job profile, income of the applicant before issuing any of the credit cards. There have been umpteen instances wherein the banks have rejected the applicant's request for issue of a credit card citing low credit score, risky job profile and so on.

But if you are having a fixed deposit in a bank and apply for a credit card, then you can apply for the secured credit cards offered by banks.

Many leading banks in India including the State Bank of India, Axis Bank, Kotak Mahindra Bank and Bank of Baroda do offer credit cards against fixed deposits of their customers. In such cases, the fixed deposit of the customer will act as collateral security on which the credit card will be issued and these cards can be obtained by depositing as low as Rs 15,000 in a fixed deposit based on the bank's preset rules and regulations.

Usually, the bank will set a credit limit in the range between 80 - 90 per cent of the fixed deposit amount.

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