How is FD Credit Card Different from Regular Credit Card?

If you’re new to credit cards, you’ll often hear about FD credit cards and regular credit cards. Both look similar, but they work very differently.

Let’s understand this in the simplest way.

Basic Difference (Simple Explanation)

• Regular Credit Card (Unsecured)
  Bank gives you a card based on your income, job, and credit score
• FD Credit Card (Secured)
  You first create a Fixed Deposit (FD), and the bank gives you a card against that amount

In short:
Regular card = No security needed
FD card = Your money is kept as security

FD Credit Card vs Regular Credit Card (Full Comparison)

What is an FD Credit Card?

An FD credit card is a secured credit card.

How it works:

• You open an FD (say ₹50,000)
• Bank gives you a credit card
• Your limit will be around ₹40,000 – ₹50,000
• FD stays locked as security

Example

• FD Amount = ₹50,000
• Credit Limit = ₹45,000 (approx.)

You can use the card normally, but if you don’t repay, the bank can recover money from your FD.

What is a Regular Credit Card?

A regular credit card is an unsecured credit card.

How it works:

• No deposit required
• Bank checks your:
  • Income
  • Job stability
  • Credit score
• Based on this, they approve or reject

Who Should Get an FD Credit Card?

FD cards are best for:

• Students
• Beginners (no credit history)
• Homemakers
• Business owners without income proof
• People with low or poor credit score

Why FD Credit Cards are a Good Option?

• Easy approval
• Start with small FD (₹5,000–₹10,000)
• Helps build credit score
• Safe way to learn credit usage

Disadvantage of FD Credit Cards

• Your money is blocked in FD
• Limited benefits
• Lower rewards compared to premium cards

When Should You Choose a Regular Credit Card?

Go for a regular card if:

• You have a stable income
• Good credit score (750+)
• Want better rewards & cashback
• Need higher credit limit

Important Tip for Beginners

If you can’t get a regular card:

• Start with FD Credit Card
• Use it regularly and pay bills on time
• Build your credit score for 6–12 months
• Then upgrade to a better regular credit card

Risk You Should Know

Even FD cards require discipline:

• Late payment = Negative impact on credit score
• Continuous default = Bank may break your FD

So always pay your dues on time.

Bottom Line

• FD Credit Card → Best for beginners & easy approval
• Regular Credit Card → Better rewards & benefits

If you’re starting your credit journey, an FD card is a safe first step. Once your score improves, you can move to better credit cards with higher benefits.

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