Secured credit card: Your answer to financial challenges

Experiencing sudden financial setbacks can be incredibly daunting. Job loss, unexpected medical expenses, or even a global pandemic can significantly impact your finances and potentially damage your credit score.

However, many solutions are available to help you rebuild your credit and regain control of your financial future. One such option is a secured credit card. In India, secured cards are often preferred for their ability to provide credit even when other options fail.

This blog aims to empower you with the knowledge you need to select the best secured credit card in India. It will also set you on the path to financial stability.

What is a secured credit card?

A secured credit card is a type of credit card that requires you to deposit a sum of money as collateral in a fixed deposit (FD) account. This deposit, often called a security deposit, is a guarantee for the credit card issuer.

In essence, you are borrowing against your own money. This structure makes secured credit cards in India valuable for homemakers, college students, and individuals with a limited credit history.

Here’s how it works –

1. To get a secured credit card, you simply open an FD with the bank
2. The credit limit is set based on your deposit amount
3. The FD acts as a safety net for the bank, minimising risk

In short, it’s a steppingstone to financial stability and recovery.

How can a secured credit card help you rebuild financial stability?
 

A financial setback doesn’t mean you’re stuck forever. A secured card presents a clear path towards improving your financial situation. Here’s how it can help –

1. Rebuild your credit score

How you build your credit score reflects your creditworthiness. Regular, on-time payments with a secured credit card can positively impact your score. Since the cards are reported to credit bureaus, responsible usage shows lenders that you manage your finances well.

2. Access credit despite low scores

Traditional credit cards often require good credit scores. However, with a secured credit card in India, approval doesn’t depend on your score but on your ability to make an FD. This ensures access to credit even during tough times.

3. Promote responsible financial habits

A secured card encourages disciplined spending and payment habits. Since the credit limit is tied to your deposit, it reduces the risk of overspending while helping you manage your finances better.

4. Safety net for unexpected expenses

Life is unpredictable. Unexpected expenses can arise anytime, from medical emergencies to car repairs. A secured credit card can be a reliable backup for such situations, especially when you need funds urgently.

The card can help you avoid high-interest loans or borrowing from less reliable sources.

Who should opt for a secured credit card?
 

A secured credit card is an excellent financial tool for individuals facing various financial challenges –

1. Low credit score

If you've recently faced financial challenges that have negatively impacted your credit score, a secured credit card is a valuable tool to help you restore financial stability.

By making timely payments and using your card responsibly, you can gradually improve your creditworthiness and unlock were previously out of reach opportunities.

2. Denial of traditional credit cards

If you've been rejected by traditional credit card providers, a secured credit card can provide you with a valuable alternative. It offers a way to establish a positive credit history and gain access to credit.

3. Seeking financial support with minimal risk

If you're looking for a way to access credit without taking on significant risk, a secured credit card in India is a prudent choice. By requiring a security deposit, it ensures that you're responsible for your spending and reduces the lender's risk.

If you're someone looking for a practical way to regain financial stability, the FIRST EA₹N Credit Card is an ideal solution. It offers a secure way to redevelop your credit while providing the convenience and flexibility you need.

Introducing the FIRST EA₹N Credit Card
 

When it comes to choosing the best secured credit card, the FIRST EA₹N Credit Card is the ideal fit for you.

You don’t need an extensive credit history or a high CIBIL score to be eligible. Instead, it is secured against an FD. This FD acts as collateral against which the credit is extended to you.

The FIRST EA₹N Credit Card is an instantly issued digital card available via the IDFC FIRST Bank website. Available at a joining/annual fee of ₹499 + GST, the card is easily accessible to new-to-credit users.

With a secured credit card like the FIRST EA₹N Credit Card, you can enjoy all the traditional benefits of a RuPay credit card, such as advanced security and UPI payments. At the same time, you also get –

1. 100% cashback up to ₹500 on the first UPI transaction done within 15 days of card generation (welcome offer)
2. 100% cashback up to ₹200 on the first 4 UPI transactions made through the IDFC FIRST Bank mobile app within 15 days of the annual fee being levied; this annual offer is valid from the second year onwards as well
3. 1% cashback on every UPI spend via the IDFC FIRST Bank Mobile Banking App
4. 0.5% cashback on other UPI apps, insurance, utility, wallet, and online spends
5. 25% discount up to ₹100 on movie tickets (valid once per month)

Additional unique features of the card include –

1. Complimentary benefits -

a. Roadside assistance worth ₹1,399

b. Lost card liability cover of ₹25,000

c. Personal accident cover of ₹2,00,000

2. Earn FD interest – Earn interest of up to 7.25% p.a. on your fixed deposit, while enjoying interest-free credit for up to 45 days. This makes it one of the best secured credit cards in India.

3. Enjoy a minimum credit limit of 100% of FD value – Apply for the FIRST EA₹N Credit Card with a minimum fixed deposit of ₹5,000. Get a credit limit equal to your FD value or more. So, you get to decide your credit limit.

To conclude

A financial setback does not define your future. By choosing a secured credit card, you take a step forward to recover from financial misfortunes. With benefits like improving your credit score and maintaining financial discipline, a secured credit card helps you regain control of your future.

The FIRST EA₹N Credit Card is designed to meet your needs during challenging times. Low fees, attractive rewards, and guaranteed approval make it the ideal tool to restore your financial stability.

Ready to take that first step? Apply for the FIRST EA₹N Credit Card and pave the road to a better financial future today!