Your credit score is an important number, which helps the banks decide if they should give you a loan or not, what interest rate to offer you, and whether you can get approved for a secured credit card in India.
But what if you’re just in the beginning phase of your financial journey or your credit score is very low, then that’s where a Secured credit cards India option becomes very helpful. These secured credit cards are one of the easiest ways to build credit score and improve your profile.
Let’s dive in and find out how secured credit cards in India work, how secured credit cards help build a good credit score in India, and how to use them wisely and smartly to get the best credit card for low credit score users.
What Is a Secured Credit Card?
A secured credit card is a unique type of credit card that you get by giving the bank a fixed deposit (FD). This deposit works like a secure backup for the bank, and your credit limit is mainly based on this amount.
The best part is that you don’t need to show income proof or have a high credit score to get started, making it ideal for people searching for FD credit card India options Secured credit cards India .
Key Features:
You need to give a fixed deposit as a security
Great option for people who have no credit history or a low credit score
Works like a regular credit card with same rewards and features
If you use it smartly, you may get upgraded to a regular credit card later
How Secured Credit Cards Help Build a Good Credit Score in India
Your credit score shows how good you are at handling money you borrow. It is tracked by companies like CIBIL, Experian, and Equifax. A secured credit card is a safe and smart method to start building or fixing your credit score and is often recommended to people looking to improve CIBIL score fast.
1. Reports to Credit Bureaus
When you use the secured credit card and pay your bills on time, the bank shares this action with credit bureaus like CIBIL. Good habits like paying your full bill on time and not using too much of the limit can slowly improve your credit score.
2. Timely Repayments Improve Score
Your credit score mainly depends on whether you pay on time. By using your secured credit card regularly and clearing the dues on or before the last date, you show that you’re a responsible borrower. This builds your credit score and helps in qualifying later for personal loans and better credit cards in India.
3. Safe Credit Building for Beginners
If you are a beginner and don’t have any credit history, it can be hard to get a regular credit card. But a credit card for low credit score like a secured credit card is simpler to get and helps you build a solid credit history step by step.
4. Low Risk of Rejection
Banks usually ask for a fixed deposit as security, so there is less risk for them. That’s why secured credit cards get approved easily even if you have a low credit score.
5. Credit Utilization Ratio
Try to keep your spending below 30% of your credit limit. For example, if ₹10,000 is your credit limit, try to keep your spending below ₹3,000. This keeps a healthy credit utilization ratio, which is key to build credit score in India faster.
How to Use a Secured Credit Card Effectively
Using your Secured credit cards India carefully is very important. Try these practical tips:
Pay the amount before the due date
Try to pay your full bill on time, not just the minimum. This avoids interest charges and improves your credit score. Many people looking to improve CIBIL score fast use this simple strategy.
Use it often, but don’t overspend
Try to use your secured credit card every month for small expenses like groceries, fuel, or online shopping, which shows you’re active. But don’t cross 30% of your credit limit.
Set a reminder or auto-pay
If you miss even one payment, it can hurt your credit score. Set reminders or enable auto-pay to stay safe.
Don’t close the card too soon
Use the card for at least 12 months. A longer credit history is good for your credit profile and helps you later when you want to upgrade to better cards or apply for loans.
Upgrade when you’re ready
After 9 to 12 months of smart usage, your secured credit card can help you move to a best credit card for low credit score history turned good, often automatically offered by the bank.
Best Secured Credit Cards in India 2025
If you don’t have any credit history or have a low credit score, then secured credit cards are a smart way to start. These cards are supported by an FD, so banks feel safer. Here are a few of the best secured credit cards India 2025:
| Bank | Card Name | Minimum FD | Features |
|---|---|---|---|
| SBI | SBI Card Unnati | ₹25,000 | 4-year annual fee waiver and rewards |
| ICICI Bank | ICICI Bank Coral Secured | ₹20,000 | Rewards points and discount on dining |
| Axis Bank | Axis Bank Insta Easy Credit Card | ₹20,000 | Cashbacks and EMI conversion |
| HDFC Bank | HDFC Bank MoneyBack+ Secured | ₹10,000 | Cash points and easy approvals |
| Bank of Baroda | BoB Prime Credit Card | ₹15,000 | Lifetime free card and good for starters |
Advantages of using a Secured Credit Card
Easy approval without a credit score check
Builds your credit profile fast for future loans
Offers rewards and benefits like normal cards
Can be upgraded to a regular credit card later
Safer than loans or co-signed credit for new users
Things to Watch Out For
Don’t spend over your credit limit
Avoid paying only the minimum due
Always track due dates
Your FD is locked as long as you keep the card
Early FD closure can cancel the card
Conclusion
If you’re struggling to get a regular credit card or want to start your credit journey safely, then a Secured credit cards India is a smart option.
Use it by paying before the due date, keeping spending under control, and using it regularly. Soon, you’ll build a better credit score, leading to easier approvals for loans, credit cards, and many other financial benefits.
FAQs
Who should apply for a secured credit card in India?
Anyone with a low credit score or beginners wanting to build a credit history.
Will using a secured card really improve my credit score?
Yes, timely full payments and spending within limits help build credit fast.
How much should I deposit to get a secured credit card?
Most banks ask for ₹10,000 to ₹25,000 as FD to issue you a secured card.
Can I convert a secured credit card into a regular credit card later?
Yes, after 9 to 12 months of good usage, banks may upgrade you.
Is there any risk in using secured credit cards?
If you miss payments, the bank can recover dues from your FD.