Can I Take a Credit Card to Build My Credit Score?


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  • Shall You Take a Credit Card to Do So? Read this to Decide!

Not having a credit score means you don’t have a credit history, and so, there won’t be any credits coming your way! The ending line stays true but not entirely. Yes, you can still get a credit card by which you can build your credit history. You can counter us by saying that credit cards being an unsecured credit can’t be given to someone with no credit history. And, you are right in saying it. But banks offer you a secured credit card against the collateral of fixed deposits. Not only that, banks also offer credit cards to students. These two types of credit cards can help you build your credit history and make you eligible for big-ticket loans in the future. Read these credit cards in detail.

Secured Credit Cards – How Do They Work Out for You?

As stated earlier, secured credit cards are offered against the collateral of fixed deposits. But the point is, how much will the credit limit be? The credit limit will account for 80%-90% of the fixed deposit value. In a bid to attain customers, banks can also offer credit limits at 80%-90% of the residual value of fixed deposits. The residual value implies the interest to be earned on deposits. By considering interest earnings, lenders can place your credit limit higher than someone getting a credit limit simply on the amount deposited. Secured credit cards can build your credit score faster if you pay your dues on time.

List of Best Secured Credit Cards

Some popular secured credit cards do the rounds these days, including SBI Unnati Credit Card, Axis Insta Credit Card, ICICI Coral Credit Card, etc.

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SBI Unnati Credit Card

  • No fee for the first 4 years of card membership
  • Earn 1 reward point per ₹100 spent
  • Enjoy cashback worth ₹500 if you spend ₹50,000 or more within the first 15 days
  • 1% fuel surcharge waiver on transactions worth between ₹500 and ₹3,000, excluding Goods and Services Tax (GST), wherever applicable, plus other charges

You need to open a fixed deposit for a minimum of ₹25,000 to get this credit card.

Axis Insta Credit Card

  • Enjoy credit limits upto 80% of the principal amount of fixed deposits
  • Get a credit-free period of 50 days
  • Cash withdrawal allowed upto 100% of the credit limit

The approval to this credit card is contingent on meeting the minimum deposit amount that Axis Bank asks for.

ICICI Bank Instant Platinum Credit Card

  • Earn 2 PAYBACK points for spending ₹100, except the fuel purchases
  • Reward points earned can be redeemed for cash
  • Earn a ₹100 discount on upto 2 movie tickets per month at
  • Make the most of the exclusive dining offers using the ICICI Bank Culinary Treats program

ICICI Bank Coral Credit Card

  • Earn 2 PAYBACK points for spending ₹100 on all, except fuel, insurance, utilities and cash transactions
  • Double your rewards on groceries, dining and supermarkets
  • Buy 1, get 1 free movie ticket all along the week at
  • Enjoy complimentary lounge access

ICICI Bank Rubyx Credit Card

  • Grab welcome vouchers worth ₹5,000 on travel and shopping on paying the joining fee
  • Get upto 15,000 PAYBACK points every anniversary year
  • Enjoy upto 2 complimentary golf rounds per month, subject to meeting the eligibility spends in the previous calendar month
  • Enjoy 2 complimentary domestic airport and railway lounge access per quarter
  • Double your rewards on international transactions
  • Make the most of the Buy 1, Get 1 Free movie ticket offer on
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You’ll have to open a fixed deposit with a minimum of ₹10,000 at ICICI Bank to get any of these three credit cards offered by the lender. The minimum deposit period should be 6 months.

Benefits of Secured Credit Cards

  • Helps Build Your Credit Score – It helps build your credit history faster if you pay your dues on or before the due date
  • No Annual Fee – These cards come with an annual fee waiver. While some come with a fee waiver for the lifetime, some come with a waiver for few years
  • Increased Credit Limit – You can get a higher credit limit on secured credit cards as opposed to unsecured cards. The limit is contingent on the value of fixed deposits, so if your fixed deposit amount is higher, the limits can increase substantially. But make sure to use your limits with discretion so that you can pay the bill without any delay and maintain a good credit score by doing so.
  • Chance to Earn Interest – As the credit card is available against the fixed deposit, you have the chance to earn interest on your deposits.
  • No Income Documents Required – You don’t need to submit any income documents to get the secured credit card.

The benefits of secured credit cards are obvious as you could see above. But that doesn’t mean the door of unsecured credit cards is shut for those not having a credit score. Yes, salary account holders can get an unsecured credit card. Some banks also offer such credit cards to those maintaining a savings account relationship with them.

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Student Credit Cards – Some banks, particularly public sector entities, offer credit cards to students to meet their expenses. So, you can build your credit score even if you are a student.

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