Secured Credit Cards for Low Credit Score Users

If your credit score is low or you have no credit history, getting a regular credit card can be difficult. Secured credit cards (also known as FD-backed cards) are designed for this very purpose — they help you build or rebuild your credit profile in a safe, structured way.

This guide explains how secured credit cards work, why they’re helpful for users with low credit scores, and what are some of the best options in India right now.

What Is a Secured Credit Card?

A secured credit card requires a fixed deposit (FD) or collateral. The bank holds this deposit as security, and gives you a credit limit based on a percentage of that deposit. Since your money is already with the bank, the risk for the bank is lower, making it easier for them to offer you a card even with a poor credit score.

Why Secured Credit Cards Are Ideal for Users with Low Credit Score

Lower Risk, Easy Approval: Banks are comfortable approving secured cards because your FD acts as collateral.
Build Credit History: Your usage and repayment behavior are reported to credit bureaus. This helps rebuild or generate a positive credit history.
Safe Credit Limit: Since the limit is tied to your FD, you are less likely to overspend.
FD Still Earns Interest: Your deposit still earns interest while serving as collateral for the card.
Convert to Unsecured Later: Once you build a good track record, you may qualify for unsecured cards in the future.

Top Secured Credit Cards to Consider for Low Credit Score Users

Here are some well-known secured/FD-backed credit cards that are suitable for people with a low credit score:

Card	Minimum FD Required	Credit Limit	Key Features
SBI Unnati Credit Card	₹ 25,000 FD	Up to ~80% of FD	Zero annual fee for first few years, fuel surcharge waiver
SBI Advantage Plus Credit Card	FD deposit required	Up to 85% of FD	Global acceptance, add-on cards, helps build credit score
ICICI Instant Platinum Credit Card (Secured)	₹ 50,000 FD	~80% of FD value	No joining fee, reward points, fuel surcharge waiver
Kotak 811 Dream Different Credit Card	Around ₹ 5,000 FD or more (depending on bank variant)	Depends on FD	Helps build credit for beginners, no prior credit history needed
SBM ZET Secured Credit Card	Very low FD (as low as ₹ 5,000)	Up to 90% of FD value	Lifetime free, no credit history required, FD continues to earn interest
Suryoday RuPay Platinum Secured Card	₹ 1,00,000 FD (or more, depending on tier)	Based on FD	Global card acceptance, UPI-enabled, secured credit line, reward program

How to Use a Secured Credit Card to Rebuild or Build Credit

Use It Regularly: Make small monthly purchases — essentials like groceries, fuel, or bills help.
Pay Full Bill On Time: Always clear your statement balance to avoid interest.
Keep Utilisation Low: Use a portion of your limit (e.g., 30% or less) — this helps credit bureaus see responsible use.
Monitor Your Credit Score: Check your credit report periodically to track improvements.
Maintain FD: Keep your FD healthy because the card limit is tied to it.
Upgrade When Possible: After a few months of good repayment, request a secured-to-unsecured card upgrade.

Risks and Things to Keep in Mind

Your FD is locked: While you have the FD with the bank, that money is not available for other uses unless you close the credit card
Interest on card spends: If you do not pay in full, interest applies like any other card
Annual or joining fee: Some secured cards might charge a fee, though many beginner ones are free for a few years or for life
No reward richness: Secured cards may not offer as many benefits as premium unsecured cards

Final Thoughts

If your credit score is low or non-existent, a secured credit card backed by a fixed deposit can be a smart way to start building your credit. Over time, responsible use can help you graduate to better unsecured credit cards with higher limits and richer benefits.

Best Credit Cards