Secured vs Unsecured Credit Cards in India
FD-backed secured credit cards vs regular unsecured cards — who should choose which, and how they build CIBIL.
Get approved — no bureau pull
Unsecured credit cards in India are approved based on income, CIBIL score, and repayment history — no collateral required. Secured cards require a fixed deposit (FD) as collateral; your limit is typically 80–90% of the FD amount. Both report to credit bureaus and can build CIBIL when used responsibly.
Who should choose a secured card
- No credit history or 'NA' CIBIL score on first application.
- Repeated unsecured rejections despite stable income.
- Self-employed applicants with short ITR history.
- Anyone rebuilding after settled accounts who needs a fresh tradeline.
How FD-backed limits work
You open an FD with the issuing bank — commonly ₹25,000 minimum — and receive a card with a linked limit. If you default, the bank can liquidate the FD. The FD still earns interest per bank rates. IDFC FIRST WOW and SBI FD-secured products are popular 2026 entry points for secured credit in India.
Graduating to unsecured cards
After 6–12 months of on-time full payments and utilization under 30%, many users qualify for unsecured upgrades or new applications with stronger CIBIL. Keep the secured card open until the new account is established — closing your only tradeline can shorten average account age.
SBI Card against Fixed Deposit
SBI Card
Net / yr
₹1,440
Fee
Free
Top
80% of FD value
- ✓Wins this head-to-head — about ₹1,440/yr net after fees on typical spends.
- ✓Best for credit limit — 80% of FD value.
IDFC FIRST WOW Credit Card
IDFC FIRST Bank
Net / yr
₹620
Fee
Free
Top
1X reward points
- ✓Strong runner-up at ₹620/yr net — roughly ₹820 behind #1 on the same spend mix.
- ✓Best for all spends — 1X reward points.
SBI Card against Fixed Deposit
SBI Card
Net / yr
₹1,440
Fee
Free
Top
80% of FD value
- ✓Wins this head-to-head — about ₹1,440/yr net after fees on typical spends.
- ✓Best for credit limit — 80% of FD value.
IDFC FIRST WOW Credit Card
IDFC FIRST Bank
Net / yr
₹620
Fee
Free
Top
1X reward points
- ✓Strong runner-up at ₹620/yr net — roughly ₹820 behind #1 on the same spend mix.
- ✓Best for all spends — 1X reward points.
Net value snapshot
Rewards minus annual fee on your spend profile
- #1SBI Card against Fixed Deposit₹1,440#1SBI Card against Fixed Deposit₹1,440
- #2IDFC FIRST WOW Credit Card₹620#2IDFC FIRST WOW Credit Card₹620
Estimated net value on a shared spend profile — not marketing headline rates.
Get a personalized recommendation
Articles are generic — your best card depends on income and spends. Match in 2 minutes, no CIBIL pull.
Start Free MatchFrequently asked questions
What is the minimum FD for a secured credit card in India?+
Many banks start at ₹25,000–₹50,000 FD for a proportional credit limit. Higher FDs unlock higher limits. Exact minimums vary by issuer.
Does a secured card build CIBIL as fast as an unsecured card?+
Yes. Bureau reporting is the same. Payment behaviour and utilization drive score growth, not whether the card is secured.
Can I close the FD before closing the secured card?+
No. The FD is lien-marked against the card. Close or upgrade the card first per bank process, then reclaim the deposit.
Are secured cards lifetime free?+
Many entry secured products are LTF or low fee, but check joining and renewal terms. Fee structure is separate from the FD collateral requirement.
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