Low or No Credit Score? How a Secured Credit Card in India Can Boost Your Score Fast

Your credit score (CIBIL Score or similar) is a key measure of your financial credibility in India. A high score (typically 750+) unlocks lower interest rates on home loans, personal loans, and the best unsecured credit cards.

But what if you are new to credit (a student or young professional) or are looking to rebuild a damaged score (due to past missed payments)? Banks often say “no” to regular and unsecured credit cards. 

This is where the Secured Credit Card in India steps in as your most powerful tool. It’s an effective, low-risk way to prove your creditworthiness and dramatically improve your credit score.

In this comprehensive guide by FixMYScore, we’ll break down exactly how this unique financial product works and the steps you need to take to use it to its maximum potential. 

What is a Secured Credit Card in India?

A secured credit card is a credit card that requires you to provide a security deposit, almost always in the form of a Fixed Deposit (FD), to the issuing bank. These cards are also commonly referred to as Credit Cards Against FD or FD-Backed Credit Cards.

How Secured Credit Cards Work in India 

Think of it as a collateral-backed card:

Collateral: Your Fixed Deposit (FD) serves as security for the bank.

Credit Limit: Typically, you receive a credit limit ranging from 75% to 100% of your FD amount. For example, if you open an FD of ₹25,000, your credit card limit would likely be between ₹20,000 and ₹25,000.

The Safety Net: Your FD acts as a guarantee for the bank. If you fail to repay your credit card dues, the bank can recover the outstanding balance from your deposit. This significantly reduces the lender’s risk, making approval much easier.

Building Your Credit Score

Once you start using the card and paying your bills on time, your repayment history gets reported to credit bureaus like CIBIL, Experian, and CRIF. Over a few months of responsible usage, you can build or rebuild your credit score from the ground up.

Who Should Consider a Secured Credit Card in India?

Secured credit cards are ideal for:

1. New to Credit (Zero Credit History): Perfect for building your first CIBIL score if you’ve never had a credit product before.

2. Low or Poor Credit Score: An excellent tool for repairing your credit profile after past financial setbacks.

3. Limited Income Proof: Many FD-backed cards require minimal documentation beyond basic KYC, making them accessible even without traditional income proof.

Why It’s the Best First Credit Card for New Borrowers

Starting your credit journey with a secured card has multiple benefits, especially in India’s fast-evolving credit ecosystem: 

1. Easy Approval — No Credit History Needed

Banks usually approve secured credit cards instantly since your fixed deposit reduces their risk. Even if your CIBIL score is below 650 or you have no score at all, you still qualify.

2. Boosts Your Credit Score Fast

Each timely payment improves your repayment history, which makes up nearly 35% of your CIBIL score. Within 3–6 months of disciplined use, you’ll start seeing positive score movement.

3. Turns Savings Into a Credit Tool

Your fixed deposit continues earning interest, so you’re not locking money away without benefits. It’s a win-win: your savings work for you while improving your financial reputation.

4. Converts to an Unsecured Card Later

After consistent usage and timely repayments, most banks offer to upgrade your secured card to a regular one without requiring new documentation. 

Recommended Read: Fast Credit Score Repair in India 

How to Choose the Best Secured Credit Card in India

The market for Credit Cards Against FD has grown significantly in India. Here’s what you must compare: 

Feature to Compare	Why it Matters	FixMYScore Recommendation
Credit Limit % of FD	A higher percentage (e.g., 90% to 100%) gives you more spending power.	Aim for 90% or more.
Minimum FD Amount	Look for one that fits your budget. Some start as low as ₹10,000 – ₹25,000.	Choose the lowest entry point you are comfortable with.
Annual Fee	Many competitive secured cards offer Lifetime Free benefits (Zero Annual Fee).	Choose a card with zero or a very low annual fee.
FD Interest Rate	Since your FD is still earning interest, choose a bank offering a competitive FD rate.	Don’t forget to check the FD interest rate; your money should still be working for you.
Unsecured Upgrade Path	Check if the bank automatically upgrades you to an unsecured card after 12-18 months of good use.	This is the ultimate goal. Pick an issuer known for easy upgrades.

Tips to Build Your CIBIL Score Faster

• Keep your credit utilization below 30% of your limit.
• Pay 100% of your bill before the due date every month.
• Maintain your card for at least 6–12 months before closing it.
• Avoid applying for multiple cards simultaneously.
• Monitor your CIBIL score monthly. 

Pro Tip: You can monitor your credit score growth and get AI-driven improvement insights with FixMYScore.

The Bottom Line

A secured credit card is a strategic tool to build your credit foundation and take control of your financial future in India. Whether you’re starting fresh or rebuilding after past credit challenges, it offers a low-risk pathway to prove your financial responsibility and boost your credit score.

Don’t wait for the “perfect” moment. If you have little to no credit history or a low score, a Credit Card Against FD is your solution. Use it consistently, pay on time, and within a year, you’ll see tangible improvements in your credit profile—unlocking better loan offers, lower interest rates, and greater financial confidence.  

 

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Frequently Asked Questions (FAQs)

1. Can I get a secured credit card in India with no credit history?

Yes! Secured credit cards are designed for individuals with no previous credit history. Since the card is backed by your fixed deposit, banks don’t require a high CIBIL score or income proof for approval.

2. Does using a secured credit card improve my CIBIL score?

Absolutely! Every on-time payment you make is reported to credit bureaus such as CIBIL, Experian, and CRIF Highmark, which helps improve your credit score. Consistent, disciplined use for 6–12 months can significantly boost your credit standing. 

3. Can I convert my secured credit card to a regular card?

Yes. Once you build a good credit history and maintain consistent on-time payments, most banks allow you to upgrade your secured card to an unsecured one.

4. How long does it take to build credit score with a secured credit card in India?

Typically, you can start seeing improvements in your credit score within 3–6 months of regular usage and full bill payments. However, building a strong credit profile usually takes 6–12 months of disciplined financial behavior.

5. Will I lose my FD if I miss a credit card payment?

If you miss multiple payments, the bank may use a portion of your FD to cover dues. However, timely payments ensure your deposit remains untouched, and you continue earning interest on it. 

6. Is a secured credit card better than a prepaid or debit card?

Yes. Prepaid and debit cards do not help build your credit history since they aren’t reported to credit bureaus. A secured credit card, on the other hand, directly contributes to your credit profile and helps improve your credit score.