Building Credit Confidence: Understanding Secured Credit Cards in India

secured credit card in India

Trust is key in credit and one way to build it is to have a good credit score and history. If you don’t, applying for a traditional credit card or any other credit can be challenging. Thankfully, this doesn’t mean you cannot access credit altogether. This is because of the availability of a secured credit card in India

These cards are collateral-backed and offer an opportunity to build or rebuild credit that traditional cards cannot. Here’s all you need to know about them. 

Flat lay of credit cards with lock

What Are Secured Credit Cards?

These cards are specially designed to offer credit to those with limited or poor credit histories. Traditional unsecured credit cards are issued based on the applicant’s creditworthiness. But these only require an initial security deposit and no income proof or credit score. 

These deposits serve as security and reduce the risk associated with lending to those who have either defaulted on repayment or have no history. Here are some key features of these cards: 

  • The credit limit depends on the FD value
  • The deposit will earn interest
  • The issuer can use the deposit to recover the dues
  • The deposit has to be of a specific amount and for a specific timeline 
  • The issuer will report your credit use to credit bureaus, helping build credit history

Who Should Consider Obtaining a Secured Credit Card?

These cards are ideal for: 

Individuals With Limited Credit Histories

You can use this card to build a credit history from scratch. To achieve this, pay the bills on time and in full and maintain a low balance.

People With Low Credit Scores

You can rebuild your creditworthiness by showing responsible behaviour when handling the card. Once you achieve this, you can requalify for other forms of credit.

Young Adults

Using the card smartly can help young adults build their creditworthiness early on. This will set them on a path to financial independence and accessing better credit in the future.

Benefits of a Secured Credit Card in India

Here are some of the top benefits of using different credit card types in India. 

Build Positive Credit History 

This is one of the major advantages of having this card. Timely payments and low utilisation prove responsible behaviour, which is reported to the credit bureaus. This helps improve your score over time.

Earn Interest

This is another major benefit of these cards. Since you will book an FD with the issuer, they will offer interest. So, you don’t just get access to instant credit but also a way to grow your funds securely. 

Control Spending 

With deposit-linked credit limits, managing your spending and preventing overspending becomes easy. This feature can especially prove helpful for newcomers or those who struggle to manage credit limits properly.

Transition to Unsecured Cards 

With responsible usage and regular upgrades, you can prove that you can manage credit without missing deadlines. This can make you a low-risk borrower, which helps you qualify for unsecured cards with higher limits and potentially better rewards programs. 

Popular Secured Credit Cards in India

Here are some of the most popular and valuable secured credit card types available. 

ICICI Bank FD Card 

The bank offers two secured credit card types and a credit limit of up to 90% of the deposit amount. The minimum deposit amount is ₹50,000, and the minimum tenor is 180 days. 


The bank offers a digital card instantly issued against your FD. You can get up to 100% of the deposit value as a limit and earn interest up to 7.5%. 

One Credit Card 

You can get a metal card with a minimum deposit of ₹50,000. The interest can be up to 7.5%, and your credit limit can be up to 100% of the deposit value. 

Things to Consider Before Applying

Before you apply for a secured credit card in India, evaluate the following to make an informed decision.

Security Deposit 

When selecting your deposit amount, consider its impact on your budget and credit limit.  

Interest Rates and Fees 

Compare both the interest offered and levied to choose the most lucrative option. Evaluate other related fees, such as annual, late payment, or cash advance charges, to select the cost-effective option.

Credit Reporting 

Not all issuers that offer a secured card in India report your activity directly to credit bureaus such as CIBIL, Experian, or Equifax. Since this reporting is essential to building your credit history, look for cards explicitly stating this. You can visit their website or call customer service to confirm the same.

Card Benefits 

While developing credit is the main objective, certain secured cards offer other attractive perks, such as cashback, rewards, purchase protection, and more. Compare these perks to get more value from your payments.

A secured credit card in India can be an invaluable way of building creditworthiness with confidence. As mentioned, the FD-backed One Credit Card is among the top options. 

Along with a high credit limit and lucrative interest, you can get up to 5X rewards, exclusive offers, and more. Its powerful One Credit Card app gives you control over your card at your fingertips. Apply online today in just a few clicks. 


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