Credit Card against Fixed Deposit (FD)-Feature and Review

When your credit history is totally at low and you are desperate to have credit card then the worst solution you can opt for is going for credit card on your Bank Fixed Deposits. Few banks offer such facility. But is it actually required?

Credit Cards

Let us first understand who can opt such credit cards.

  • Persons who have bad credit history.
  • Persons to whom no banks are offering credit card because of above said reason.
  • Persons who are in desperate need of have credit card (I don’t know prompt them such desperation 🙂 ).
  • Persons who are habitual of online shopping where they can use ONLY Credit Cards.
  • Persons who find it easy to have two or more credit card than one to maintain billing cycle.

You see above list, and easily you can predict that none of above reasons are actually a healthy situation of one’s financial life. So what is the need? But still few banks offer such credit card facility and there are customers who are very much eager to have them.

Let us see few banks which offer these plans.

1) ICICI Bank’s Credit Card against Fixed Deposit

  • Min Deposit Required-Rs.20,000
  • Min Tenure of Deposit should be 180 days.
  • Your Fixed Deposit must not have any lock in like Tax Saving FDs.
  • Minors and Foreign Nationals are not allowed.
  • Interest rate on credit card will be 2.49% PER MONTH. Means per year it will be 29.88% PER YEAR.
  • No Joining fee and annual fee.
  • Rs.100 off on movie tickets.
  • Minimum 15% savings on dining in leading restaurants.

2) SBI Advantage Plus Card

  • Credit limit will be 85% of your FD.
  • Interest rate will be 2.25% PER MONTH.
  • Joining and annual fees are Rs.500.


3) Axis Bank Easy Credit Card

  • Min Deposit will be Rs.20,000 and maximum is Rs.25,00,000.
  • No card will be issued against FDs such as Tax Saver FDs, Flexi-Deposits (Auto-sweep FDs), FDs in the name of HUF/Society/Trust/Companies.
  • Card will not be issued in minor’s name.
  • Joining Fee Rs.500.
  • Annual Fee is NIL.
  • Finance charges at 1.95% per month and cash withdrawal fee is Rs.250.

Other banks also offer such credit cards. But I restricted to few banks only.

So what are the disadvantages of owning such credit cards

  • Your FD is no longer a liquid asset as it is linked to credit card.
  • If any due prolonged then banks will adjust such dues against FD.
  • Credit card is nothing but a loan. So using such facility often is not a good sign of financial life.
  • You are opting this facility only because no banks offered you credit cards freely. So any default in payment will again downgrade your credit history.
  • If you opted this card with intention of have more credit cards in your name then there is high probability of increase in your unnecessary spending.

370 Responses

  1. If I take fd credit card and I will use properly,
    Can my credit score will increase.

    Now my credit score is 651 and if i want take it to 700 plus how long it takes

  2. Credit card on against of fixed deposit… after closing of credit card how many days later fd can be broken ??

  3. I have made FD of Rs 10,000 and applied for Credit card does it effect my credit score if I fail to make repayment regularly???

  4. What happened to Credit Card after Maturoty period of FD is over and we do not renew it?
    Can we still use credit card or we have to handover that after term ending of term period?

  5. I had applied for SBI credit card against 30000fd for 6 months. After my fd maturity if I have take my money then also credit card works or I have to handover to bank?

  6. Hello, I am a college student planning to get credit card from SBI by using a fixed deposit. My question is…what happens if the term period of the FD is over? Can I continue using the CC as normal or do I have to renew the FD for another term? This is assuming i never default on the CC payments. Thank you.

  7. Sir

    I have got a Credit Score of 774 at the Opening but Gradually it is Reduced to 750.

    But I have no Baglogs Such as late Payment, may I know the reason

    1. Dear Naveen,
      It may be due to your past history. Check the late payment details. If they are not really related to you, then interact with CIBIL or concerned bank to remove those late payments.

  8. I need to improve my Cibil Score, hence going for secured credit card. I have made a FD of 1.5 lacs with HDFC. What card am I going to get andwhat would be best way to use it.

  9. I have a credit card which is not active now and my credit score is also not good.Is it possible to re-activate my old credit card? Or Is it possible to re-activate old credit card against FD?
    If I take a new credit card aginst FD and I pay the bill without any delay, will the credit score improve with in one/two months?

  10. I am having Axis bank & Indusind Bank credit card against FD.

    I am use full amount & currently I do not have money & I want to close my credit cards

    Can Bank will deduct full amount my FD & return remaining amount to me?
    Is it possible?

  11. I have a credit card against FD of 70000 and it is set to mature in June 2018 with maturity amount being 76000. I currently have a credit limit of 56000 which is 80% of Collateral. My question to you is when my FD matures and is auto renewed, will my credit limit increase automatically? Also can I link another FD to my Credit Card account so that i have a higher limit and don’t end up spending more then 30% of it to help up my credit score?

    Rohit Netravalkar

  12. hi. recently HDFC, Union bank of india rejected for Credit card.
    i m ready to kept FD . but have few doubts
    how many days i have keep FD? can i get Interest rate on FD?
    Aftre getting First card by this option any way to get card from other bankers ?
    if i got card from other bankers can i cancel these FD card?
    please suggest which bank you suggest ?

    1. Dear Shyam,
      You have to keep the FD as long as you are holding the card. Yes, they given you applicable interest on FDs. Yes, you can get cards from other banks also once your creidt score increases. Once you get a credit card from other banks, then yes if don’t need this current card, then can cancel it.

  13. If I take credit card against fiexd deposit in axis bank and make payment regularly without fail n witin due date will it increase my civil score? Which banks gives credit card on FD?

    1. Dear Zee,
      Yes, if you use it cautiously and pay the dues within time, then definitely it will increase your credit score. Many Banks offer such facility. Check with your bank of choice.

  14. Dear Sir

    I have received my Credit Card against FD two days Before

    Can I know when will the cibil score starts as of Now it is NH


      1. Sir

        My Brother Applied for Car Loan at NH Stage, but during approval the have made it 752.

        Like wise when will my Cibil Score starts.

  15. Sir if i Rs. 25000 fixed deposit in hdfc / ICICI bank then i take credit card against deposit amount & maintain the card properly for six months & i want personal loan against salary
    ( monthly Rs. 45000 ) but i have defaulter in previous last 7 years ago but i maintain my cibil score is 845 can i take personal loan ……



  17. Sir i have a sbi credit card against fd. Today i went to bank branch to withdraw my fd. Bank official didnt said anything about credit card. They took my fd certificate and took my account number to transfer amount and told me account will be transferred today but no money got transferred today .

    1. I’m eager to know about your FD withdrawal linked to CC. I too have a similar FD linked with CC. Have you got your FD money in cash? Is your Credit Card still active? Please do reply

  18. I have an axis secured credit card backed with FD but FD has matured and I ahve withdrawn it. Also i do not have any account with axis bank. Now what if I do not pay card dues.

  19. Mene credit card fd against liya hai to kya muje jo pahle fd interest pahle jase hi milgega ya kuch affect padega ya nhi

  20. Seeing ur replying get impress sir
    My credit is nothing, like i dnt have any score so im going to take a credit card against fb in my bank of baroda

      1. If i take a credit card against fd worth rs 25 thousands… THEN I GET SAME CREDIT SCORE OR LOWER CREDIT SCORE BECAUSE OF LOW AMOUNT I KEEPT IN F.D

  21. Dear Sir I am yadhavan

    I had a Cridit card against FD and i am using it from three month and my two bills were generated and i paid before due date
    My cibil score is 522 just want to know how fast or til when my cibil score will be ok
    My card is SBI

  22. I want to apply for unnati credit card in SBI so what will be the validity. For example if I need the FD amount in between and I withdraw the amount the card will be blocked or not

      1. Agar main unnati card close kar diye to kya mujhe fd ka jo certificate hai wo milega??? Q ki bank se yea bol raha hai k jab take card rehga mujhe certificate nei milega

  23. Sir I had sbi credit card against FD and it came to maturity. I have some pending EMI on credit card. If I want to take my amount am I need to surrender credit card?

  24. When and how will I return back my fixed deposit amount with interest..
    I mean my fd complete in how many years………..
    What is the process of taking my money back to me with some profit.

  25. Hi Basavaraj Tonagatti sir,

    This is umamaheswar,I have a bad cicil score due to this i am unable to get the loans from banks.If i take the credit card against the FDs,My civil score will increase or not.I need a suggestion from u.

    Thanks in advance……………

  26. If i take Credit card on FD… what will happen to interest on my FD??… Will it be affected???


      1. As far as I know credit history(CIBIL SCORE) is not checked for credit cards issued against FDs. Kindly confirm the same from your bank.

        Currently DCB bank offers “PayLess Credit Card” against FD amount of Rs, 25,000/-.
        Alternatively you can also opt for “Unnati Credit Card” offered by SBI(This was specifically desgined for people with No Credit History. Please check for details).

        I had no credit history and my CIBIL SCORE was NH(No History). Due to this I was having difficulty in getting a credit card. So I took a PayLess card from DCB bank against FD. But soon I was offered a Regular full featured Credit card from HDFC(MoneyBack/Times Titanium) and it does not require a FD.

        One credit card was more than enough for me. As I generally use them for urgent items while I’m seriously low on balance. Therefore, I surrendered my PayLess card and closed my DCB bank accounts.

        1. Arnob-As it involves the credit, whether it is against FD or without it, score matters. Even though there are no clear clarification, but due to credit involved in this, your score matters.

  28. Hi Basavaraj,

    For me credit card is not an absolute need. I can certainly live without it but thought it might provide me some urgent liquidity when needed. But my concern is something else. Since I never took a loan or used credit card before so my CIBIL score is ‘NH’ (No History). In the past few months I have applied to several banks for a credit card and all of them got rejected. So here’s my big question: Will my application for loans (if I need to apply) will get rejected in the same way?

    1. Arnob-Take my example. I neither own credit card nor had any credits or loans. But recently when I applied for home loan, nationalized bank sanctioned the loan without second though when the credit score that that time showing as NO HISTORY.

      1. That’s correct. Actually I had to close my first credit card account without use or card activation few months ago. And when I applied for credit cards at other banks all of them got rejected. When I asked for reason people would usually say its because of internal policy(say What?). Then how did my first credit card got issued?

        I won’t be concerned if the same reasons of rejection of my credit card application does not apply for my future loan application in the same way.

  29. Sir I have low cibil score,i am looking for credit card to improve my score to take home loan in near future.I have got call from Axis Bank that i have pre approved credit card,kindly confirm whether i will get the card ? Or should i do fD & applied for card?Also is it possible to improve credit score by using credit card?My Axis Account is 4 years old also my Salary got increased from rs 13k to 32k in last 2year.

      1. is it possible to improve credit score by using credit card?My Axis Account is 4 years old also my Salary got increased from rs 13k to 32k in last 2year.

  30. Sir, 8 months ago i applied for a credit card but that got rejected saying CIBIL issue. i got a card fron SBI against FD. since 8 months i am building up credit score and now recently i also got a washing machince financed by BAJAJ. my score is 750+ and i am owning business of mine with an ITR of 4lac+ but i dont understand why i am unable to get a credit card. i have never bounced any payment bank is unable to answer me why its getting rejected.
    since 8 months i am regularly paying all the bills of my credit card.

    pls help me out with this.

      1. Not really… but i feel at the time of cash crunch it can help.
        Also it helps to buy many things with small emi’s. Few of them also offers rewards, cashback and movie tickets as well . Thats why i feel like having one

  31. can you suggest me how to smartly invest money where to invest , i need safe and secure investments till now i invest only in fixed deposits in private banks , but they give very little intrest pls suggest me options basu waiting for ur reply

      1. need to invest 5 to 8 lacs rs all white amount in bank fd pls suggest where to invest suggest me best options where i can get best returns need to play safe

          1. i said its fds about to.mature i need secure more options pls suggest where i will get more return

              1. Dear I mean to say my money shud not sink and tell me the secured way of investing same money where risk is minimum and profit is high hopefully u will ans me now and u must hv point

        1. Hello Sir,

          I would like to know if i take credit card from sbi against Fixed Deposit will the limit of my card increase I mean if i deposit 20,000 and my limit (80%) would be 16,000 if i use intelligently so will the bank increase the limit or not.. please update me

            1. No, They won’t enhance your limit. I have have tried for this but they denied to enhance the limit of secured card. They suggested me another way which was to try for a new card (Unsecured) and close my prevous (Secured) card.
              But for new card again Cibil, Elligibility, Age etc. matters.

                1. They simply refused, They said that the only option to increase the limit is by closing that card permanently and applying for a new one. Now, if the FD amount is enhanced they will get a better deal for you but you will no longer have your old card history benifits as they will issue a completely new card and that will be treated as a fresh card.

  32. Hi,
    I am eshwar, i am having account with axis bank, how long it will take to get a credit card through fixed deposit.

  33. Hey,

    I have Savings account in SBI and i do not use that account much but i have FD in that account and amount is high. i have applied for CC and also today i have received SMS from bank regarding CC, They are going through the process of checking Bureau records to find my eligibility. Also i do not know my CIBIL score. What are your comments and suggestions ? & Do i get CC from bank or they will decline ?

  34. Hello sir,
    I do have few questions about credit card based on HDFC. Does HDFC bank offer credit card against fixed Deposit ? What is the name of the card issued bu HDFC if they offered ? Do I need to open saving bank account for this ? Can I open Basic Saving account (Zero balance account ) for this purpose?

  35. Hi,
    Q.1. if i pay due amount on time every month, i have to pay any interest or hidden interest on the amount will be charged ?

    Q.2 is it possible to pay axis bank credit card due by sbi and of sbi by icici without any interest… just to increase the time period 40days ×3 =120 days credit limit ?

    Q.3. is there any charges or condition if i dont use credit card often or i use it sometimes in a month or sometimes once in two or three months? still my cc will be alive ?

  36. Hi

    Big thanks for sharing and enlighten us by your article.

    My Cr Score is 550, in order to improve should I apply for one cr card or two? How long will it take for score to be back to 750 and above.

    Any other advise by which I can improve my scores.

    Thanks in advance!

    Sandeep Kashyap

  37. Dear,

    I have a Bad Cibil score due to my past history, however i’m trying to clear one by one. But i was desperate to have CC however i have SB account with SBI and my transactions are good, every month minimum 40 to 70 k i transact, and my salary also get credited to SBI saving account.
    And recently i have done FD for 45 thousand, and i have applied for Simply Save Credit Card, Do you think SBI will offer me CC card on my FD as i have bad CIBIL score. Do i still get Credit Card….Please help me to understand.

  38. hi sir
    i am unemployed and preparing for higher studies . and i want to buy things which i cant afford in single payment . but i cant apply for any credit card as iam unemployed so want to know whether fd credit card is useful . if i have 20000 fixed deposit credit can i buy product worth 50000 with 12 or 6 months emi ?
    thank you help needed

  39. Hi Sir,

    Your post is informative but one point is not cleared.

    Can i get Instant EMI facility and convert to EMI facility on ICICI Bank Coral or Instant Visa CC against FD for using in online transaction on EMI.

  40. sir i few days ago i hve aplied for a pre aprroved credit card from axis bank but due to same cibil score issue i was declined and after 20 days i m again aplied for a credit card from sbi bank but 4 days ago now information received from the bank like my card is aproved or not and i m traking the aplocation number but it shows my credit card aplication is cloud not be processed since it not meet to the bank policy and still i hve not received any information from the bank regarding my card status is it aproved and disaproved kindly tell what is the meaning of cloud not be processed and bank policy is not meet with the bank.

      1. it means my credit card aplication is declined but as discuss with SBI bank customer care they told me my aplication is not declined still is in process if my card is not aproved then i will received a msg from the bank .

  41. I have cibil score of 620. If i get secure credit card and i use it properly (30% utilisation & emi on time) , how much months its take to increase cibil score approximately? .kindly don’t tell its depends on usage or over the period of time.

      1. Ok. I’m going to use every month. That is if credit card balance is 20000 means , I will use 6000 every month.

  42. Suppose I have applied for SBI credit card based on the fixed deposit (worth 20k) and I get credit limit of 85 % only. So it should be around 17k. Does that mean I can buy products les then 17k or i can buy more than 17k (exp, 30k)

  43. I have apply for SBI card against FD it has been around 14 dayz but till now not issued… What may be the reason

  44. helo, does applying for many credit card companies together affect your cibil score? for example, i have applied to a few banks within a single week..

  45. Hello Sir,

    I settled 1 pl & 1 CC in recent past. I know that no banks are ready to offer credit. however I want to improve my CIBIL score. Can you suggest me.

    On other hand, will savings bank account transactions be reported to CIBIL. Can you please assist me in this regard. Thanks in advance.

  46. Thanks a lot sir for your promt reply … Sir which bank is best among the sbi or axis or icic bank to get fd credit card which one youl sugest sir .. Advance thanks sir

  47. Helow sis my name is mohamed from chennai and i am 20 year old i am working in my dad shop ( a small rice shop) my dad now giving me 50000 rs to start my own business .. But the amount is not enough for me .. So i decided to open a fixed deposit in the bank for an 1year … (I have swipe machine with me) my question is
    After opening the fixed deposit i will get a credit card … But i am going to use that credit card to swipe money in my dad ( swiping machine) in my dad shop and i keep that money idel untill my next due if i payed that exactly on the time … If do this same for an year will i eligble for other bank credit cards without fd account … In the mean time even i can save my 50000rs without spending to some others.. Is this possible sir

  48. I work for contact center and my annual gross salary is approx. 5 lakhs. I never had any credit card or loan. I applied for first time with Citi bank and they rejected it by saying that reason is internal and cannot disclose ??? Very Strange.

    I got the mail as well in which they stated that after considering the CIBIL score and Internal policy they have rejected my application for credit card.

    After two weeks I applied for HDFC credit card and they also rejected with same reason. Its seems that no bank is ready to give me credit card. Also I don’t hold salary account with any of these two banks.

    Can you advise which bank will issue me credit card ???

    1. Chittaranjan , CIBIL score is generated once you have a credit card or Personal loan under your name as you have none that’s why banks are rejecting your applications. Easiest way to get a credit card is apply to the bank where you hold a salary a/c they will give you offers and pre approved credit cards.

  49. Hi,

    I bought a FD from SBI bank. Now FD will be mature in coming 5 days.
    I went for instructions to SBI bank and they told me that there hold on FD from SBI Credit Card team.
    I didn’t take any card from SBI then how come they can put the hold on FD.
    SBI customer care is worst and they are not helping me in this case.
    Please let me know what to do in this case.

  50. I have just opened an Fixed Deposit at ICICI Bank online and applied for the credit card too. Can anyone here tell me how many days will i have to wait for it to get delivered?

  51. Hi i have low cibil score. I got mail from axis bank mentioned as i have pre approved credit card. I have salary account in axis bank. As i have low cibil score i called axis bank customer care (1800 209 5577) to confirm if they give credit card for low cibil also. Axis bank customer support executive told “Axis bank never check cibil score for pre approved credit card. Because Pre approved credit card provide by us is based on salary,city,company…etc”. But after few days my pre approved credit card declined due to low cibil score. I applied pre approved credit card only because of axis bank customer support execuive told like that. Now it will affect my cibil score. So can i go for Consumer court for this? can i get any solution? or is there any other options are there?

    1. Karthikeyan-In your case, they issued the card to reach their sales target. They declined it because you have low CIBIL. It will not affect your score and no need to go for consumer court. It is all sales tactic they use.

      1. But my friend told its may show in Cibil Report. So that it will affect when i apply any other loan in feature.

        1. And i have another doubt. if i took secure credit card, say for example 25000. So i get 20000 limit. If i use around 5000 per month means after 6 months to 1 year how much credit score will increase?. My current cibil score is 650.

            1. I have education loan around 3l . I have to pay 10000 per month. But i unable to pay it on time. so my cibil score decreased.Now after 6 months to 1 year i need to apply loan. So i thought instead of paying 10k for education loan by spending 4k will increase cibil score . I will pay my education loan after 1 year ( my salary will increase at that time).

                    1. My friend working in finance sector telling that using secure credit card in smart way will increase Cibil score even we didnt pay the other emi or paying other emi partially. is that correct?

  52. Hello Sir, i want to get a credit card just for online shoppings.
    I’m always purchase expensive things. But I don’t really like to pay whole money at first.
    That’s why I want to get a cc so i can make purchases over EMI.
    I’ve a sbi saving account.
    I’ve also a job i m getting paid 23,000/ mo, my sbi account is running from 2010
    I’ve also fd in sbi of 10L which is running from 2011.
    My fds are in 4 part [ 5L, 3L, 1.5L. 0.5L].
    Expect it I’ve also a personal loan on my head of 3,50,000..
    And it’s running from 2013. I’m paying all my emis on time. From start and I’ve paid already 1,60,000/-

    So I’m asking. Should I go for fd based credit card.
    Or just give a try and apply for normal credit card.

  53. hello sir i was apply for credit card last month in axis card but my card declined due to cibil score . so i want to know if i request credit card on fixed deposit can i got my card or agine declined ..

  54. Hi,

    Few years ago, I badly managed my CCs due to which I ended up with a score of 650. I had closed all of them (some of them settled / written off), and have a good salary currently for the past few years. Will my score improve by itself even if I don’t carry any CCs now? When I apply for loans, would my current income be able to offset the negative impact of my score?

    1. Keerthi-To increase your score, you must be customer of CC or loans and frequent quality transactions of your savings account. Your current income may not offset to that extent. But try to apply for lesser credit and manage them well to increase the score. One time settlement may also affected your scoring.

  55. Sir

    I applied a sbi credit card 2days back I got a call intimating I already have a credit card which was not closed I remember I took it on some fd emi base in 2012 further I cancelled my emi.

    Can I get back same card what is process

    1. None of sbi cc or dc work on international sites. I’ve personally experienced this shit that’s why I’m saying.
      Go and open an account in Indian Bank
      And after that ask to get you
      EMV master card
      It’s a debit card.
      And it’s working on international sites also on paypal

  56. Hi Basavaraj,
    Nice Article.
    Well previous I use to have around 7-8CC (2003-2008). Then i closed all the CC as i went abroad.
    Now i came back i 2010 and have applied for CC and got rejected due to min Salary 25000.00 requirement.
    Cant I get CC on my previous CC statements?
    I have a SBI account and gone to ICICI bank to check on CC against FD of 20000.00 but they said you have to open an account in ICICI as well with min 10000.00 in balance. I wanted ICICI CC as they have some good offers in it.
    So wanted to ask, Cant we have CC of different bank with FD?

    Sameer Khan.

    1. Sameer-CC usually be issued based on your current income and past CIBIL score. Hence, it automatically reflected from your earlier transactions in CIBIL. Do you feel it is necessary to have CC of investing Rs.30,000? You can manage this cash as if your CC.

  57. Hello Basavraj,

    I have different query. My credit score is 712 as per CIBIL(Yesterday) But months back my credit card was blocked due to some irregular payments of the outstanding credit amount(on one purchase that I forgot) and paid back the entire amount immediately. The card somehow is blocked. Apart from the card payment issues I have no other issues with credit as I am paying Housing loan, car loan(with the same bank) on due date for the last 3+years. I have also completed my payment with two wheeler loan very accurately.Now my concern is
    I talked to the bank and they agreed to provide me a fresh credit card.But the credit card has no much incentive and the credit limit is also low since I have shown a very low income(2.5lpa) I wish to know in this case
    1. Should I go for a FD based credit card (I am ready to fix upt 1l) for SBI simply save card or continue with my current bank credit card only. By the way my present Bank partner is HDFC.
    2. Apart from Credit Card and Loans, I have kept FD’S, SIP’S,RD’s, Car Insurance etc everything with HDFC Bank.
    3. Should I just cancel my Credit card and shop with Debit card only to see if I get a better credit card from HDFC sometime late?
    I am not understanding what should I do.

    Please help 🙂

    1. My Main intention to apply for a credit card is to get maximum reward out of the transactions, As I spend more than 20K a month for utility,grocery,movies,dining and shopping etc and Also improve my scores upward 800+. I know it’s difficult but not impossible as I have already been there for a long time. Considering this case can you please tell me what should I do?
      1. Go for SBI Simply save against FD as it provides maximum advantage?
      2. Continue with the Fresh HDFC CC against Income Proof?

      Wait for your reply

    2. Ullhas-1) If the offer of bank not suitable for you then you can go ahead Credit Card against FD. 2) You can go ahead with HDFC itself. 3) But if you have credit card and manage well then it improves your score than having debit card.

  58. Hello Sir , I had 1 persoal and 1 2 wheeler loan back in 2008 , which had bounches , however were closed bck in 2011 , post wich i had no loan , and i had applied for my Cibil . which shows my score as NH .
    So request you to please advised if Credit againt Fd who be helpful for me and how many months it would take to vgenerate good cibil score , if i make payments on time .

  59. Sir what is the minimum and maximum deposit need to get credit card and can i use this card for remittances money with other contries ?

  60. Hello Basavaraj,

    I applied for an FD credit card with SBI on 2013, but due to job issues I was unable to pay the FD amount of 25,000 was divided into installment of 2500/month, so the credit card didn’t had limit on it and also I didn’t use it.

    Will that effect my credit score?


  61. Sir,
    I had 7 small unpaid loans(like tw,cc,consumer durabals & pl total sum around 220k ) from 2004,recently i checked cibil score which shows 530 score,in report 3 loan shows closed,1 written off and other shows overdue amount,for improvement of my cibil score i opted credit card against fd 2 months ago… my question is what should i do for fast improve of cibil score,pay all the outstanding or wait for improve score by using fd cc…?
    Please help me

  62. sir please tell me if i close my fd after one year then fd based credit card will be continue or will close with fd

  63. Hi sir,

    Because of some personal difficulties I have not paid my over to the bank.Am not getting cc, pl suggest me

  64. ACTUALLY i dont need to ask any new question here, bcoz all similar queries that i want to know is already asked, and i must say you gave all answers to me, without punching a que by me…

    so thanks for that , doing very good, keep it up sir..


  65. It seems you are biased in the first few lines of writing this blog…. the five reasons you have cited are – “none of above reasons are actually a healthy situation of one’s financial life”. I need a FD credit card not because I don’t have income (my income, and my wife comes around 1 lakh per month) since no banks here issue credit cards I look for FD credit card.

    1. BJ-It is not biased statement. But having any type of credit is not a sign of good financial life. But the man who don’t look for credit may be a bad customer to lending banks or the credit scoring companies 🙂

  66. Sir,I have a SBI Credit Card against adeposit of Rs 30000 and the limit is Rs 24000. I was unable to pay my last due and now i want to surrender the card and adjust the outstanding with the FD. Can you please guide me how to do the same.

    Thanks and Regards

  67. Hi,

    I have never taken any Loan (as I never needed any) I am a NRI returning to India. I called the banks for getting credit card but all the banks are asking for current salary job (I am currently doing freelancing). So I dont have salary slip and I dont have an ITR also. So banks are not giving me credit cards. Any suggestions for me?

    1. Kishor-It is valid point to ask one’s income before lending. Hence, immediately you can’t get the credit card. However, once you come back to India and after a year start filing tax returns, then they may issue you.

  68. Hi,

    If I put an fd of rs 50000 in Icici bank and get a credit card.

    after using it for an year can I get another credit card?

    if yes then I would close the Icici card get the fd back and will keep on using the one I got from different bank.

    is this possible?

  69. Hiii,

    Nice and helpful article.

    I am a freelance web developer and i need credit card for my online business to make online transactions.
    But i can’t get credit card , so i was thinking to get credit card against fixed deposit.
    I already have ICICI savings account so i was thinking to get Credit card against fd there.
    I Don’t care about interest and all that,i just want credit card to run my business.

    But i am little confused ,
    Whether the credit card against fd and a normal credit card have same functionality and features….?

    Your answer would be appreciated Mr Basavaraj Tonagatti.


      1. Thank you for clearing this point. I have a another query. I have seen executives offering credit card on basis of previous card. So Can I use this bypass to get actual (Not against FD) credit card? Could you please clear this in brief. Thanks

  70. Hi Basavarj,

    I need some financial suggestions from your side to build corpus for emergency fund and goal. Kindly let me know how to contact you.

  71. Which banks is best to get credit card against FD? with reference to below points.

    1. Maximum % of total FD value
    2. Longest repayment tenure
    3. Lowest interest rate
    4. EMI facility against purchase
    5. Fastest CIBIL score improvement

  72. Hello sir I am pradeep from noida. My salary is not good to apply for credit card. So I am thinking to get crdt crd behalf of my fd. Which credit crd will be best for me..

        1. My main motive
          is for emergency only.. like medical….. bec many times it happen u save money for it.. but it spend..

  73. Sir
    i got 3 fixed deposits in sbi bank laxmi nagar branch in 2002 for one year duration ,i got it renewd for 5 years then i shifted outside delhi for some time so couldnot get time so asked for automatic renewal. When i returned back and personally went to get it renewed to find my fd was blocked against credit card which i never applied for and not recieved . How could i get it . corrupted employee thereare not ready to help

    1. Shivani-File a complaint with the bank itself only (send the copy to the concerned bank manager). If they not budge then you can raise the issue with banking ombudsman. You just name that you are going to complain with an ombudsman. I think they bend 🙂

  74. Hi,
    Your responses were very useful.
    I have a bad credit score due to some settlements two years back, where I was not aware of CIBIL Score. Now with good job, I am thriving to improve my score. Shall I apply for a FD based credit card. As, I am aware of the importance of CIBIL, I am sure I will pay my dues ahead of time.
    Will FD based Credit card help me improve my Credit Score? Kindly advice.

  75. Hi,

    I am struggling to get a credit card. Since I am a website developer I need a credit card immediately to do the international transactions. I also do lots of online shopping. Please would you suggest the credit cards with minimum annual maintenance fee? I had applied for an ICICI Bank credit card but after 1 month they rejected without any reason. Please help………..

  76. Conditions of ICICI Credit card against FD
    Special Joining Fee of ? 500.
    Unlimited cash rewards on your spends. Double the rewards on dining, groceries and at supermarkets.
    Buy one get one free movie ticket through the week.
    Minimum 15% savings on dining at over 800 restaurants courtesy our Culinary Treats program.
    Complimentary airport lounge access courtesy Visa.

  77. Dear Sir,

    I have taken a loan from Fullerton India 5 years back, I paid the EMIs regularly for 1 year & then due to job issues I failed to pay the rest EMIs after 3 years I wanted to restart the EMIs but they refused.

    and I dont have the full amount to pay them kindly help me what should I do can I pay them in installments or any loan can be taken to pay the rest amount. should I go for home loan?

    1. Sandeep-First of all I don’t know the lender name and their conditions before lending. I feel it is better to finish their loan by paying lump sum (either from your own savings or from considering other format of loans).

  78. Hi Basu,

    I think it is better to go with a specific requirement related and independent credit card. Not like against some FD or other investment. If someone need a credit card to get cash back for movie ticket booking then look for such cards and then ask for that.
    Anyway this is a nice article, I didn’t knew that such credit cards also exists.

    1. Manidipa-Yes, it is better to go for independent cards. However, in some cases due to their bad credit score, they may not be in a position to get the cards. In such a situation, such Credit Card against FDs will be helpful for them.

  79. hello sir
    sir mujhe ek credit card Lena Hai mera budget 25ooo tak Hai meri ek gift shop Hai kya app beta sakte Hai mein koun she bank Ka card lo jisme interest rate fees or charges kam hu wise mera SBI mein ek chota sa saving account Hai Jo 5 saal se operate hu RHA hai

  80. Hi,
    I am new to this forum of financial experts. I have the few queries too to get answered, I will be grateful

    I took a loan of 100000 from ICICI in the year 2007 during to some family urgency , I paid EMI’s till one year regularly but unfortunately, I lost my job and could not pay further. When again I got a job and I managed to settled my loan amount last year and got NOC from bank as well.

    I now shifted to Bangalore, and applied for Credit card on the basis on my salary which is take home of 1.35 K/month
    My request for credit card was disaaproved by Kotak which is my salary processing bank, HDFC .

    I have never checked my credit score but I am sure, it must be low because of the loan settled. But considering the importance of having a good credit rating, I am really keen to improve my credit score if can get a credit card on behalf of FD and pay bills timely.

    Kindly suggest me with the best options to go and also I can write to CIBIL for updating them with my NOC.

    Looking forward.

    Thanks & Regards

  81. online shopping ke liye FD pr credit card lena chaahta hu me. mere pass SBI me 20000 Ki FD hai , kya us FD pr credit card lekar online shopping ki EMI pay kr sakta hu kya me. aur kis bank ka credit card FD pr lenaa shi hogaa. online shopping ke liye. I am student and interested in online shopping of mobile and laptops. how much interest will be pay for this type of purchasing.
    plz. help me.

  82. With effect from 1st December 2014, Interest rate on Axis Bank credit card has been revised from 1.95% to 2.50% per

  83. Dear Sir,
    i want to interest ICICI Bank’s Credit Card against Fixed Deposit

    kindly clear what is the credit limit of credit card, if i will open 20000 fixed depost?

    Please resply as soon as possible.


  84. Hi Basavaraj, A good day to you..

    I have a questions which I have not been able to get clear answer from

    A lot of Banks have asked me before “If I hold a credit card”, I understand that If I already have a credit card it will be easy to give them one to me as well, Unfortunately Iam very new to this kind of credit system so my CIBIL score is NA/NH..

    So the question is

    If I take a Credit Card based on Fixed Deposit from Axis Bank will I be able to acquire another Credit Card from ICICI Bank(Not the Fixed Deposit one), considering all these banks only ask you for an existing credit card to issue a new one.

    Also, will it reflect on CIBIL that the Credit Card I have taken from AXIS Bank is against FD.

    Will be very thankful to get any info on the above..


      1. Thankyou Basavaraj for your prompt reply,
        as you said and I understand it will reflect on my CIBIL that the credit card I have taken from AXIS but will it specifically mention that its a “Credit Card against FD”

        Also do you think I can get a normal credit card from some other bank based on the existing credit card?

        Thank you,

            1. Dear Ashwin,

              I do apologize if I did revert to you late, I just came across this website,Ashwin any normal credit cards can only be acquired if your cibil score is less than 750, so if you get a Credit Card on the basis of any F.D(Insta Credit Card is what they mention), you will get a normal credit card only if your cibil score line is above 725 else you may need to continue the exisitng credit card which would be under lean to your deposit,unless one of the two things occur

              1. Your CC isuing Banker is satisfied with your payment history and maybe after 12-15 months, they decide to give you a credit card or

              2. This one is more likely to occur, your Cibil Score increases with good financial discipline on the exisitng card you will use(the only negativity is if your payment history is bad for these credit cards you take on FD, the cibil may go lower.

              et me know if is solved your query, albeit a bit late


  85. Hi,

    I have similar type of issue. Where i have had obtained the NOC from both financial institutes, however i still see them as settled as a status in my CIBIL report. Any advise how can i get rid of it.

    At the same time i adopt the credit card against FD to improve my CIBIL score. So is it going to improve my CIBIL score in any manner and how.


  86. Hi,
    I will be using my credit card only for foreign transactions – buying some medicine & payment for online business. I’m not interested in EMI etc. Is there any advantage in getting AXIS bank fixed deposit credit card over ICICI & others.

    Also, If I don’t max my credit limit & pay my dues in time – what impact will this secured credit card have on my CIBIL score .


    1. for foreign transaction its better to have a Prepaid travel card/Prepaid Multi Currency card, why reason?

      Prepaid Travel card : No foreign currency charges , N0 cross currency charges , Its prepaid so financially its more secure, if you lose the card overseas you get a supplementary card within 7 Days posted to your location, Currency lockup feature( if you feel the monetary value of the currency is going decrease you can lock it at the current rate) , you can get refund of the available amount if you you want to convert the currency card to INR, In Multi currency card you can load more than one and up to 17 currency for purpose to pay in different country.

      So suppose $1 =INR 62 and you pay INR 62000 to get a $1000 travel card and you use at a POS/Online then
      if you spend $20 the bank will deduct $20

      But suppose you pay it by a Indian Credit card then the same $20 will be acquire 3.5% foreign currency conversion fee+4% VAT , plus the price of dollar will not be calculated the same day the price will be of value of $ after 3 days i.e if you pay on Monday and the price of $1=INR 62 on Monday you will be billed on Thursday here if the value of $ have increased to INR 70 from INR 62 you have to pay 3.5%+4% of the transaction value of Thursday so its more pragmatic to use a prepaid credit card than a credit card when transacting online in foreign currency.

      coz i think its follish to pay extra knwoing the money on the credit card is not actually yours

  87. Hi,
    I am a professional working overseas having own house in India. So far, I have never used a credit card while working in India. Now, i want a credit card for some traveling, tickets booking and shopping purpose. I have a savings account win SBI with more than 10 Lac term deposits. I applied for SBI credit card while i traveled back to India, but however after returning when i track the application they declined the credit card. I assume that possibly they were unable to contact me on my overseas number. I have found in most of the banks need you to be working in India. Though i have good credit history without any bank defaults. Please advise me how do I get a credit card? Mostly, I visit India for 15-20 days and credit card processing takes more than that. I am thinking to get a credit card on SBI term deposits. Please advise. Thanks

  88. Dear Sir,
    I want to take a card against FD so which bank i should prefer,
    I have already central bank aspire card but it does not allow me to convert purchase into EMI,
    I required a card to convert purchase into EMI and help me getting another card without FD,
    Please suggest me.

  89. hi sir iam arun i have credit card in sbi through fixed deposit 25000 bt credit limit only 17000 i am not satisfy with that credit i need more than 50000 and i also ready to lean again fixed deposit if it is possible to increase my credit limit??

      1. Better you apply wih Axis, Ing vysya or Kotak bank for secured credit card. Axis is the best one, Kotak also an xellent card. Emi option lesser interest rate for regular buyer for converting it to a Emi. If you not interested in doing emi conversion, then central bank of indias Aspire credit card is the best option , where u have to remit the payment fully/minimum amount rest of the amount will be charged with minimum interest which is very lowest in Credit card market.

  90. Hi Basunivesh,

    I had a loan in 2007, after a few bounce, I made settlement which a collection agent. And he issued me a letterhead of ICICI Bank, (Saying its against full and Final Settlement) in 2008. But when I want to apply for a loan in 2014, I came to know my ICICI bank loan still shows open in CIBIL. bcoz I have not collect NOC against tht loan. So If I go to the Bank and what should I ask them :

    1) By showing the Settlement Letter and ask them, why it still showing open in CIBIL?
    2) Will they consider the Letter and Make the Loan closed and update under CIBIL?
    3) Nor “if they ask this letterhead is issued by a Collection Agency , not from the bank. So it is not valid and its your responsibility to check and get NOC. So u should close the loan”. In this case what should I do?
    4) If I agree to close the remaining amount, by ask them to refinance on the same amount make it as new Loan and make me in EMI way. Is this possible?
    5) Because I don’t have that much money to pay in one shot. So will they understand and help me on this. Because I ready to pay them with interest on EMI basis.

    Kindly Suggest.

    Nagendra H

  91. I already have a bad credit history with two banks. One under settlement-paying the amount is installments and will close in 3 months. With other bank, I have not yet reached a settlement and hope to do that soon.

    Meanwhile if I open a FD account with axis bank and apply for a CC against the FD, what are the possibilities of getting the card approved?

      1. Hi Basavaraj, thanks for your response.

        I want the credit card not bcoz of show off or something but bcoz I need for my business purpose. I buy and sell things online and in some situations, the international sellers has the payment option of either PayPal or credit card. For both these types of payments offered to me, I need a credit card, whether using it directly or paying via PayPal.

        One of my bad debt is getting over in 3 months and the other I am planning to contact that bank and reach a settlement later this year.

        I am in a situation that I need a credit card solely for my business purpose.

        1. Kenb-Why can’t you opt for paypal? My intention is not to demotivate you from using credit card. But making you to clear your bad loans. Even if you need credit card for business purpose, I still insist you to clear your existing loans then go ahead with credit card. I know it may be hard for you. But the best I can suggest you.

          1. Hi Basavaraj,

            When I want to pay with PayPal, it only accepts credit card as a payment method. In India, PayPal has a different policy where Bank accounts can be linked but only for withdrawal purpose.

            If you want to pay with PayPal, only option is to link your credit card with PayPal.

            Also in order to repay my loan, I need to generate more income now which is why a Credit card is so essential. I will need atleast one year to replay my loan, should I wait so long? I don’t think so.

            Also now that I understand the importance of keeping a good payment record, I will use a credit very carefully and will always pay the dues on time.

    1. bajaj finserv normally verify your CIBIL score for giving consumer loan, better you verify with your near by Bajaj finserv representative. Earlier my cibil was not good that time i got the Bajafinserv consumer loan. Sometime you too have luck.

  92. Hi, Basavaraj Tonagatti
    I want to get information about Credit Card against FD so can I have your contact number pls.

  93. Hi,

    Im using SBI advantage plus card against FD.After 1 year am i able to get the money which i have paid monthly for FD account.?

  94. I want to know my CIBIL Score and I am joint account holder so whether I have to fill it in that loan account section of CIBIL form?

  95. Dear Sir

    My cibil score is 839. But two credit card (HSBC & CITI – used in 2009-2010) final statement is showing as settled. When I contact HSBC, they are saying that the data is not available with them.

    Because of above reason, my loan & credit card application got rejected in the past two months.

    Can I opt for this option i.e. credit card against FD ? If yes, let me know the minimum amount of FD required to get a credit card, so that I can improve my cibil status gradually and also the name of the bank from which I can get the same

  96. Hi Basavaraj,

    I opted for SBI Advantage plus card 1year 6months ago the FD is already mature. But currently i am unable to break it as i am in Bangalore and i opened that FD in my hometown. When i checked the details in, I found that they have increased the maturity date to another 1year 6months.

    Please advice what should i do now??

  97. Why the credit card against FD is bad and what’s the interest issues on it ? pls ans because I purchased ..

  98. Sir , i was willing to take a credit card against the FD. The reason for chosing it Aginst FD is that i cant withstand the tedious process of showing long history of transaction in that bank and difficulty in producing documents like address proof because i keep on changing my location of work. Is there any hidden danger of waiving credit card against FD. I dont intend intend to do any hefty purchase against credit card and m pretty sure i will always clear ny bill. Do i have still to worry because i wanted to have credit card for convenience. Moreover if at any instant i break FD after Clearing my due bill on credit card do i get get intrest on FD till that that.

  99. Hehehe lol…Hw can we underestimate our-self..why we cant manage credit card against fd. think bank procedure and eligibility are really stupid..what they want from customer..they want only their document to sell the data to corporate sector..this business is going on…so why we cant use this way to spent money..who said that credit card user are mad…
    if u can manage your wife then i dnt think so that credit card handling is big challenge for you.
    Dnt afraid to yourself.. make planning and handle it properly..its very useful if u use properly

  100. Hi
    I am using hdfc and axis bank credit cards due to hosptailze I could not able to make payment for both credit cards for more than 4 months now cards are permently blocked now I clear the dues but when I apply for reactivation of cards bank has been decline the request for low cbil score , now thinking to go for fd credit card for make increasing my cbil score , pls suggest me its right are wrong .if its right which bank I have choose.

      1. yes i need for daily usage and i want make cbil score up for this reason i require credit card , pls suggest correct me if wrong , if its right pls suggest the bank name.

        1. Raghu-Daily usage of credit card? First understand whether you are swapping your card at your NEED or WANT? I don’t think to increase CIBIL card one must fall in trap called CREDIT. It is not wise. But anyhow it is left with you.

          1. Hi Basavaraj

            I appreciate your suggestion i checked few .I also have similar problem where i will settle one matter with bank in april . After non payment with bank as i had bad time bank charged high interest and made principal amount 1 lac from 35k . They are ok with settlement within 35 Or few more . i cant pay 1 lac at this momnet. If goes for settlement it will hit the CIBIL badly i know that but i dont have option . If a i get a credit card against the FD & i am sure i have understood the cibil now so i will use it proper i mean payment on time or before , I got new job & i will do good now i hope . i was not aware about CIBIL so had bad time with bank .

            in short after the settlement what all the ways to improve the CIbil in 1 ~2 yrs .
            i am 28 yrs as of now . i will definitely need help of banks in near future after 2 yrs .
            How about this option , go with settlement get a card against the FD & payment on time in future .I am not going to make any delay in my whole life now . I have seen the world now .If you get bad CIBIL you are not going to get anything from banks. Help me in my case to improve it & aslo i dont have 1 lac to pay but yes i can pay the settlment amoun along with 10~20 k more

            Thanks in advance God bless


  101. Hi,

    I have made settlement of my 4 Credit Cards in the year of 2010. after that i have not avail any Credit Card or any Loan, Recently i have apply for 4 Wheeler Loan and its got rejected due to low CIBIL Score, I dont understand now if i am not eligible for any Loan then how can i Increase the Score? Please suggest and i have gone through the CC Banks that there is no any due pending against my Name.
    Need your help in the same. Please suggest…

    1. Sir, for your deposit you will get as per the RBi norms, if you use your credit card then it is an additional money you are using without taking a loan. So the interest not paid by also an income for us, in that case roughly works to 8.5-9.00 % bank interest add another 10% for not paying to others.

  102. Hi , I was using 3 credit cards in 2007 and two of them I made settlement and full paid & closed for third credit card in 2010 as I got No due certificate. Recently I have checked my cibil score & report was showing the score of 740 and the status in each item was mentioned as settlement . Since my personal loan application was rejected recently. what is the procedure or how to work on settlement component which shows in cibil report so that in future I may get eligible to take loan or creditcard. or I need to go for cooperative banks.

    Thans & regards
    Chandrashekar B

  103. Hello Sir,

    I Checked my CIBIL score online after successful authentication. My score is 623 because i have overdue payment in one of the banks for more than 900 days. In the mean while I applied for Citibank Credit Card several times and got rejected. Now i have spoken to the bank and agreed to pay the entire outstanding which is overdue and want to close this Loan. I also found that i had another Consumer Durable Loan, Which was paid in full and no due ..but the loan is not closed. Please advise if that needs to Show CLOSED and also Advise by Paying the Overdue amount will it Increase My Score if so by How much in what Duration and also Planning to Apply for this Credit card against FD to Increase My score.

    Your Advise will be Much Appreciated.

    Thank you.

    1. Harry-Your score will increase by clearing outstanding loan. Also make sure that your report shows as loan closed. To make it to happen get the letter from banks stating that the loan was closed. If you found the discrepancy in CIBIL report then with this letter you can approach CIBIL and get it convert to closed loan. Yes you are right, even though you paid all loans the status must show as loan closed. Otherwise it affect your rating. First rectify your mistakes and correct the report then you can go for credit card against FD.

  104. Apart from other (negative) reasons for opting for FD-linked-Credit Cards, self-employed people often don’t get loans or credit cards unless they have an established business with many years of returns filed as proof of steady income. For such people this is one of the few (only ?) options to get a CC. Also, unlike what the article mentions, a CC need not be treated as a loan, as it can also be seen as a cashless payment mode which the bearer promises to pay for at a later date. I know scores of people, including myself, who use a CC for such convenience in payments, and maintain a healthy credit history by paying the CC dues on time.

    1. Ramesh-It is more dangerous than personal loan or any kind of loan. Look at the interest rate at which credit cards offers. So it is always advisable to be live within our reach. But I agree that for few self employed this may be one of the means to avail CC.

      1. I am a self employed person. My income is not bad, but I don’t have much bank records. I am able to maintain a credit card, but how can I convince bank? So I have to get it against fd only. Do u have any other option?

  105. The article though might have introduced an easy way to get a credit card also missed few important points: 1. CIBIL etc is a new and adopted concept in India. The agencies like CIBIL are not fool-proof. They do have wrong data and correcting them is a herculean task (though it may appear easy on blog/paper to write!). The Credit cards against fixed deposits are a boon to all those for whom the same are rejected due to bad score. 2. With compulsive usage and regular payments of credit card bills, there is an easy and excellent way to gradually increase the CIBIL score over a period of time.

    1. Sreekanth-There may be some procedural hurdles for fetching exact CIBIL score. But when all banks and financial institutions are dependent on CIBIL report to provide you any loan or credit card then it is utmost important for all of us to follow. Any product involves it’s positive and negative side. So if used wisely then they are boon otherwise bane.

      1. i have apllied for a 3-4 credit cards and got rejected in last 3 of the bank guy said cibil score is now i stopped appliying for a card on my income proof.I have the take home salary without any deduction about 50k +.I am waiting for my score to get mean while i would like to have a credit card against a fixed deposit.I have savings account with icici and sbi.I noticed that if we go for icici credit card against a fixed deposit card wont bear my name,is it the same condtion everywhere,?

        also how much time it will take to reach a good cibil score from 512 if i pay all bill on time.?

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