Start Building Your Credit Score With A Secured Credit Card
Generally, secured credit cards do not have a good reputation. This is because the companies that provide secured credit cards to customers prey on people who have little or poor credit history and in turn charge outrageous fees and exorbitant interest rates. However, the concept of secured credit cards is not bad. In fact, it is quite advantageous for students and housewives in India, or anyone with low or no credit history.
What are secured credit cards?
If you are still wondering what a secured is, then let me tell you that secured credit cards are like standard credit cards in all respects, save for that they are issued only against a Fixed Deposit account with the respective financial institution. Plus, there is minimum documentation required to apply for a secured credit card, without any income proof. The credit limit on such cards is usually some percentage of the principal amount in your Fixed Deposit account.
Using the right secured credit card from a reputable financial institution is good. Plus, secured credit card holders are subject to many benefits of the regular credit cards, which they may not even qualify for. The main advantage of getting a secured credit card is that it helps you to build your CIBIL score.
UPDATED FOR 2017!
SBI has announced an initiative to get credit cards in the hands of more customers via a secured card with an Rs. 25000 limit. Check out our article here about the new cards coming from SBI in 2017.
So, have a look at the top 3 secured credit cards in India.
1. ICICI Bank Platinum Card
ICICI is making it easy for new people seeking credit to get a card with minimal requirements.
- No additional address, identity, or income proof required
- Interest rates: 2.50% per month and 34.49% per year
- High security level with 3 built in platinum chips
- Cash withdrawal fees: 2.5% of the withdrawn amount
- Free credit time period up till 50 days
- Cash withdrawal up till 100%
- Fuel surcharge waiver of 2.5% on all your fuel transactions
- Flexible credit limit
ICICI Platinum Chip Card
- Security of a chip card to protect you against fraud
- Rewards powered by PAYBACK
- Minimum 15% savings on dining
Chances of Approval:
2. ICICI Bank Coral Credit Card
You can get the ICICI bank Coral Credit Card, if you have a Fixed Deposit account at ICICI bank. Your card will be connected to your Fixed Deposit at the bank and 85 per cent of the balance in your Fixed Deposit will be your credit limit. Till you are using this card, your Fixed Deposit should remain active with the bank. Moreover, if you do not pay the dues on your ICICI bank Coral Credit Card within 60 days, then the bank will recover the outstanding amount from your Fixed Deposit account.
- You should atleast have Rs. 20,000 in your Fixed Deposit account for atleast 180 days
- You should be above 18 years old
- Welcome gift worth Rs. 999 from Provogue delivered to you after 45 days of your joining fees payment
- Only identification proof is required, without any other documents to sign up for this card
- Your reward payback points can be redeemed against cash (1 point = Rs. 0.25) or gift vouchers
- Equipped with a permanent microchip in order to secure your transactions against duplication and forging of your card
- Joining fees: Rs. 500
- Buy 1 get 1 free movie ticket throughout the week
- Double reward points at supermarkets, on groceries, and dining out
- Free airport lounge access
- 15% savings on eating at 800 restaurants
3. SBI Advantage Premium Credit Card
You need to have a Fixed Deposit account with the State Bank of India in order to get this credit card. You can use SBI Advantage Premium Credit Card at 24 million outlets worldwide, including 3,25,000 outlets in India.
- Extended credit option, as you can pay the minimum amount every month and carry forward the unpaid balance at the lowest charges of 2.55% monthly
- Flexible payments
- Cash withdrawal limit of 100%
- Free credit period up till 50 days
- Book railway tickets online with this card
- Transfer your credit to this card from another credit card at nominal processing fees
- Replace this card anywhere across the world
- Share the benefits of this card with other supplementary cards with your family
- Access to more than 200 golf courses worldwide
- Earn rewards at departmental stores, on international purchases, and dining out
- Welcome gift of Rs. 3,000
- When you renew this card, you get an anniversary gift up till Rs. 3,000
- Complimentary access to Airport Lounges and Elite Priority Pass Program membership in India and overseas
- You can earn up to 40,000 cash points per year with this card
Currently this card seems to be missing from the SBI website, however we suggest contacting them directly if you’re interested.
Any of these secured credit cards are great options to help establish your CIBIL score. The do what they need to do, which is get your name in the system and begin building a positive credit history.
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