Did you know that you can apply for a Credit Card against your Fixed Deposit? We’ll tell you all about the benefits and why it could be a wise financial move.
You’ve probably heard about loans taken against Fixed Deposits. But, did you know that you can even apply for a Credit Card against your Fixed Deposit? Yes, you read that right!
In fact, opting for a Credit Card against your Fixed Deposit has quite a few benefits as well. We’ll tell you all about why opting for a Credit Card against your Fixed Deposit could be a wise financial move.
No proof of income required
Credit Card providers either issue a card or reject the application based on the income of the applicant. However, if you opt for a Credit Card against your Fixed Deposit, you don’t need to submit any proof of income.
Since your Fixed Deposit provides ample proof of financial security, your Credit Card application cannot be rejected on the basis of a low income.
Additional Reading: BankBazaar Launches Paperless Applications For Fixed Deposits
No rejection due to credit history
One of the main reasons why a Credit Card application can be rejected is due to a poor Credit Score. A bad credit history often leads to rejections. However, your credit history will not be taken into consideration when issuing a Credit Card against your Fixed Deposit.
So, even people with a poor credit history can enjoy the benefits of a Credit Card. In fact, you can improve your Credit Score by using your Credit Card wisely.
Additional Reading: How To Improve Your Credit Score Using Your Credit Card
Minimum documentation
The paperwork required for a Credit Card against your Fixed Deposit is minimal as compared to the amount of documentation needed for a regular Credit Card. Some banks issue a Credit Card against your Fixed Deposit as long as you provide a copy of your identity proof.
You don’t have to submit a proof of income or other documents and the card generally gets issued in five to seven working days. Note that this is only applicable if you have your FD in the same bank that is issuing the Credit Card.
Additional Reading: FD Rates Have Fallen. What Are Your Alternatives?
Combined benefits of Credit Card and Fixed Deposit
One of the most obvious and greatest advantages of getting a Credit Card against your Fixed Deposit is that you keep earning interest from the Fixed Deposit account while enjoying the perks of a Credit Card.
Based on the type of Credit Card you apply for, you can enjoy numerous rewards with your Credit Card. Now that’s what we call a win-win situation!
Note that some banks may mark a lien against your FD if you take a Credit Card.
Additional Reading: What Are The Best Fixed Deposit Rates Today?
Now that you know all about the advantages of Credit Cards against Fixed Deposits, you can make the most of the benefits offered by both these financial products.
Looking for the right Credit Card to meet all your financial needs and requirements? We have a fantastic range of cards to choose from. Time to get cracking!