FD-Backed Credit Cards: Your Path to a Stronger Credit Score

• Millions in India face loan/credit card rejections due to low credit scores, often caused by job loss, illness, or poor spending.
• FD-backed credit cards offer a solution, providing credit against a fixed deposit as collateral, with a credit limit typically 80-90% of the FD amount.
• These cards report to credit bureaus, allowing users to improve their credit score by making small purchases, keeping utilization below 30%, and paying bills on time.
• Within 6-12 months, consistent responsible use can significantly raise credit scores, opening doors to better loans and reward cards.
• Caution is advised due to high interest rates; avoid carrying a balance. Best for first-time users or those aiming to rebuild credit.

Why It Matters: FD-backed credit cards offer a secure way to build or rebuild credit, especially for those with low scores.