HDFC Credit Card Against Fixed Deposit 

Having a Fixed Deposit (FD) Credit Card can be quite beneficial, offering financial flexibility in times of need. It aids in the management of expenses, the establishment of credit, and the enhancement of future borrowing ability. However, obtaining a typical credit card may be difficult for persons with low credit scores or no past credit history. HDFC Bank provides a credit card against a fixed deposit, which is a secured credit card. It is a Credit Card that can be obtained using your FDs as collateral for the credit amount without breaking your investment. This blog discusses the HDFC credit card against fd in detail.

Credit card against a fixed deposit

A Credit Card against Fixed Deposit is a secured credit card issued using the fixed deposit as collateral. The FD serves as a security deposit for the credit card, lowering the bank's risk. This makes it an excellent option for folks who may not be eligible for traditional credit cards due to low income or an unestablished credit history. Whereas FD and its interest remain the same, a credit card can also make payments up to a limit as any other credit card.

How do Credit Cards against Fixed Deposit Work?

A Credit Card against Fixed Deposit allows you to secure a credit card by depositing money into a fixed deposit account. The fund in the fixed deposit serves as security for the issued credit card. This makes it an appropriate choice for people with no credit history or low credit scores. These cards are the same as any other ordinary credit cards issued with a credit limit and can be used for making payments.

ALSO READ: HDFC Bank FD Rates – Updated HDFC Fixed Deposit Rates

Features of a HDFC Credit Card Against FD

Here are the characteristics and benefits of obtaining a HDFC credit card against fixed deposit-

• Easy approval: Individuals with minimal or no credit history should consider an FD-based credit card, which makes acceptance easier.
• Building Credit Score: Paying your credit card bills on time helps you develop a good credit history and enhance your credit score over time.
• No Income Proof Required: You can obtain a HDFC credit card against FD without submitting proof of income, employment history, or credit score information.
• Grace Period: These credit cards can be used for making purchases and making credit card payments clear before time, which means before the due date without any interest. Earn Reward Points/CashBack on qualified transactions and use them for vouchers, airline miles, or statement credit.
• SmartEMI: Convert your online and in-store credit card purchases into convenient EMIs with various repayment options and affordable interest rates. Easy Management: Track and control your HDFC Bank Credit Card spending via MyCards, NetBanking, or Mobile Banking App.

Eligibility for a HDFC Credit Card Against FD

Who is eligible-

• Must be a citizen of India.
• The age of the depositor must be between the age of 18 and 75 years.
• Need to have an FD account with HDFC bank, if not must open one before applying for a credit card against FD.
• The minimum FD amount is ₹15,000.

Who are not eligible- 

• A credit card will not be issued if the FD amount is less than 15,000.
• If an FD is a tax-saver, sweep in FD, or is in the name of an NRI, minor, etc., it is not eligible for a credit card.

HDFC Credit Card Against FD Application Process

• If you don’t have an FD account in HDFC Bank, you should open one, either online or offline.
• Make the deposit amount considering the desired credit card's limit issued aginst it.
• Once the FD account is created
• Click on apply for a Credit Card against FD.
• Provide proof of identity and residence.
• Submit the Fixed Deposit Receipt
• The bank will analyse and issue the credit card application request after verification.

HDFC Credit Card Against FD Credit Limit

The credit limit on a regular credit card is set based on the income. For credit cards against FD, the limit is 90-100% of the fixed deposit value, with a maximum limit of 3 lakhs. 

Benefits of a HDFC Credit Card Against FD

• Quick and Hassle-Free Approval: A fixed deposit serves as collateral security, making the credit card issuing process easier, more convenient, and quicker.
• Credit Score Building: For people who have never had a credit card, this card helps to build a credit score by making payments on time.
• No proof of income is required: A credit card for FD does not require verification of income or job as the depositor already has an FD account with the bank. The bank does not require further verification as it is issued against that already issued FD.
• FD Remains Intact: Your Fixed Deposit earns interest while you secure your credit card.
• SmartEMI: Convert your online and in-store Credit Card purchases into convenient EMIs and enjoy various repayment options at reasonable interest rates.
• Rewards & Cashback: This offers credit card rewards and cashback like regular credit cards. You can earn reward points and cashback on transactions and quickly redeem them for vouchers, air miles, or statement credit.
• Instant Credit Access: You can get a credit card immediately, even if you don't meet typical credit card eligibility requirements.

ALSO READ: HDFC Tax-Saver Fixed Deposit

What to Consider When Applying for a HDFC Credit Card Against FD

• You must have a fixed deposit account with HDFC Bank or be prepared to start one.
• Understand the eligibility standards, which often include age, income, and credit history.
• Prepare the relevant documents, such as identity and address proof and Fixed Deposit data. This applies to physical Fixed Deposit-backed Credit Card applications submitted through HDFC Bank offices in India.
• The credit limit is frequently tied to the amount of FD you have with HDFC Bank. It is granted at 90% of the fixed deposit amount. Multiple eligible fixed deposits can be selected in the online application to increase the credit limit.

What should you keep in mind for proper credit card use?

Here are some points to consider for using your credit card effectively:

• You must activate your card within 30 days of issuance so it does not close automatically.
• You can easily activate your card by using the card for a transaction or by creating a PIN.
• Use your credit cards daily to earn cashback/reward points.
• Make your credit card payments on time to avoid late payment penalties and build a good credit history.
• Redeem your earned reward points before they expire.
• Make sure the website is safe for card payments in case of online purchases.
• Avoid any unauthorised transactions by regularly reviewing your credit card statements.