Why a credit history matters
Lenders look at your credit history, as recorded by credit bureaus such as CIBIL, when you apply for loans and unsecured credit cards later. With no history there is little for them to assess, which is why many first-time applicants are turned down for regular cards.
How a card can help
When the bank reports your card account to the credit bureaus, your repayments become part of your record. Responsible use and on-time repayments can help establish a credit history.
An FD-backed card is a common first step because the deposit lets the bank issue a card without an existing history.
The habits that matter
- Pay on time, every month. Set a reminder or an auto-pay for the full statement amount.
- Pay the full statement, not just the minimum due. The minimum keeps the account current, but the rest of the balance attracts interest.
- Keep spending manageable. Use the card for things you would buy anyway and can repay this month.
What can hurt
Missed or late payments can affect your credit history and bring interest and late fees. With an FD-backed card, the bank may also use the deposit to recover unpaid dues under its terms.
What to expect
Building a history takes time and steady use. No card or website can promise a particular score or a change by a certain date: scores are calculated by the credit bureaus from what lenders report.
Cards you can apply for now
These FD-backed cards are open for applications on YourFirstCard today. Each bank sets its own terms and decides on approval.
- IOB RuPay Classic Credit Card from Indian Overseas Bank: minimum FD ₹2,500, annual fee ₹0.
- IOB RuPay Platinum Credit Card from Indian Overseas Bank: minimum FD ₹12,500, annual fee ₹250 + GST.
- IOB RuPay Select Credit Card from Indian Overseas Bank: minimum FD ₹2,25,000, annual fee ₹500 + GST.
- IOB ZET Credit Card from Indian Overseas Bank with ZET: minimum FD ₹2,500, annual fee ₹0.
- DCB ZET Credit Card from DCB Bank with ZET: minimum FD ₹2,000, annual fee ₹0.
- SBM ZET Credit Card from SBM Bank India with ZET: minimum FD ₹2,000, annual fee ₹0.
Common questions
- Can a secured credit card help build my CIBIL score?
- It can help build a credit history when the bank reports the account to credit bureaus and you repay on time. No particular score or improvement can be promised.
- Should I pay the full bill or the minimum due?
- Pay the full statement by the due date. Paying only the minimum keeps the account current, but the remaining balance attracts interest.
- What happens if I miss a payment on an FD-backed card?
- Interest and late fees may apply, missed payments can affect your credit history, and the bank may use the deposit to recover unpaid dues under its terms.