A fixed deposit (FD) is more than just a safe place to keep money and earn a certain amount of interest. It can be a gateway to instant financial flexibility. You can unlock access to funds without dipping into your savings, giving you the convenience of spending while your money continues to grow by linking an FD to a best credit card.

This type of FD-backed credit card not only simplifies approvals but also opens doors to building a strong credit history. It is a smart way to balance financial security with liquidity. It offers peace of mind and practical benefits in one solution.

Understanding FD-Backed Credit Cards

A secured credit card with a limit that is usually a percentage of the fixed deposit amount is known as an FD credit card. This makes it simpler to get a credit card because your deposit serves as collateral rather than depending on your income or credit score. These cards are particularly advantageous for those with little or no credit history because they give people the chance to establish or restore credit.

Tips For Quick Approval ofan FD-Backed Credit Card

Securing your FD-backed credit card quickly requires a little preparation and attention to detail. Here are some practical tips:

1. Maintain A Sufficient FD Amount

Make sure your fixed deposit satisfies or surpasses the minimum amount required by the bank to obtain a credit card. Faster approval is frequently the result of a larger deposit.

2. Keep Your Documents Ready

Have valid identity proof and FD documents ready. Complete documentation helps avoid delays during processing.

3. Be The Sole FD Holder

Credit card approval is smoother if the FD is in your name. Joint deposits may require additional verificationor may not be allowed in some cases

4. Choose A Reputable Bank

Applying through a trusted bank like AU Small Finance Bank can simplify the process, as they are experienced in issuing FD-backed credit cards.

5. Apply Online for Convenience

AU Small Finance Bank provides an end to end digital process where your FD creation and Credit Card application is completed within the same digital application process

6. Maintain A Clean Banking Record

Make sure your account is free of past-due loans and bad records. A clean financial history speeds up the approval process.

You can increase your chances of getting your FD-backed credit card approved quickly by following these steps. It will give you immediate access to credit while keeping your savings secure.

Eligibility Criteria

It is important to fulfil certain criteria to be eligible to take an FD-backed credit card:

• Age: The range to which an applicant is expected to fall is between 18 to 99
• Residency: The individual should be an Indian resident.
• Ownership: The fixed deposit must be owned by the applicant. It cannot be a joint account.
• Amount: The FD amount must be adequate according to the minimum requirement of the bank.
• Type: It is supposed to be in cumulative or automatic renewal mode.

Application Process

It is easy to apply for an FD-backed credit card:

• Open an FD: Open a fixed deposit with the bank if you have not already.
• Application: Fill out the credit card application form with the required details.
• Documents Required: Provide necessary documentation like identity proof and FD details.
• Processing: The bank will process the application. You will have a credit card when it is approved.

You should also inquire to the bank if there are any special requirements or procedures during the application process.

Important Considerations

• Lien on FD: Individuals can mark their FD so that it cannot be closed or withdrawn until the credit card has been returned.
• Credit Limit: The limit is usually a percentage of the FD amount. One should use it wisely.
• Repayment: Maintaining a high credit score and avoiding penalties depends on timely bill payment.

Final Thoughts

Any person with a desire to strengthen the security of their savings account with financial flexibility may think of securing a credit card against a fixed deposit. It ensures that your investment continues to increase and gives you instant access to credit.

Knowing how to apply and what to consider is the way to make informed decisions and get the advantages of an FD-backed credit card. It is the perfect solution to people who require convenient and safe credit.