For salaried individuals, obtaining a credit card is not a challenge. However, applications can be rejected if one has a poor credit history or lacks a credit history altogether. In such cases, obtaining a credit card against a Fixed Deposit (FD) emerges as an optimal solution for those unable to secure a credit card due to poor CIBIL/credit scores.
Not only does an FD offer guaranteed returns, but securing a credit card against it allows individuals to obtain a secured credit card. This type of credit card can help improve one’s CIBIL/credit score and assists in generating a credit history.
The minimum amount required to open an FD varies across different banks for obtaining a secured credit card. Today, we’ll discuss a credit card that you can get with just an INR 2,000 FD. Specifically, we’re talking about the Step UP Credit Card.
Step UP Credit Card: A Co-Branded Secured Credit Card
The Step UP Credit Card is a secured credit card issued by SBM Bank (India) Limited, with Paisabazaar as a co-branded partner. This card is issued against an FD opened in SBM Bank. Additionally, users receive an annual interest of 6.50% on their FD.
Features of the Step UP Credit Card:
- Card Type: Secured
- Issuer: SBM Bank (India) Limited
- Joining Fee: Zero (For an INR 2,000 FD, INR 200)
- Renewal Fee: Zero
- Interest-Free Period: 20 to 50 days
- Credit Limit: 90% of the Fixed Deposit
- Reward Points: 1 reward point for every INR 100 spent (1 reward point = 25 paise)
- Interest Rate on FD: 6.50%
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