While it’s usually easy for employed individuals to get a credit card, those with poor or no credit history may face rejections. In such instances, a secured credit card linked to a fixed deposit (FD) can be a valuable alternative. This option is especially beneficial for people with low CIBIL/credit scores who struggle to obtain traditional credit cards. Fixed deposits offer guaranteed returns and serve as collateral for secured credit cards. Using a secured credit card can help individuals enhance their CIBIL/credit scores and build a credit history.
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Various banks have different minimum amounts needed to open a fixed deposit (FD) for secured credit cards. Today, we’re presenting a credit card option that you can get with just a Rs 2,000 FD. It’s called the Step-Up Credit Card.
Step Up Credit Card
The Step Up Credit Card is a secured credit card offered by SBM Bank (India) Limited, with Paisabazaar serving as the co-branded partner. This card is provided in exchange for a fixed deposit (FD) opened with SBM Bank. Additionally, users receive an annual interest rate of 6.50 per cent on their FD.
It is aimed at people who are new to credit or have difficulty accessing traditional credit cards because of their low credit scores. It’s also a good option for customers who can’t get a credit card because of their credit history or where they live.
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Here are the main highlights of the Step UP credit card:
Flexible credit limit
Digitized application process with zero contact
No joining fee (except Rs. 200 for Rs. 2,000 FD)
No renewal fee
Assists in building a solid credit score
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Eligibility Criteria
In India, credit cards are provided by banks against fixed deposits, but only to individual residents who hold such deposits. But certain individuals are not eligible to avail of this facility:
Hindu Undivided Family (HUF)
Minors (under 18 years old)
Foreign nationals
Third parties
Partnership firms
Trusts
Societies
Depositors of tax-saving FD
Depositors of NRI fixed deposits
How to Use a Step-Up Credit Card to Build Credit Score?
Begin using your Virtual Step UP Credit Card for online purchases to start building your credit score.
Use your physical Step UP card for offline transactions after receiving it to earn extra reward points and benefits.
Ensure timely payment of your Step UP Credit card bill to improve your credit score.
When you reach 75% of your Step UP Credit Card credit limit, think about increasing your credit limit.
