Credit cards have become integral to modern financial transactions, offering convenience and flexibility. However, not everyone meets the traditional income requirements to qualify for a regular credit card. A credit card against a Fixed Deposit (FD) can be an excellent alternative in such cases. In this article, we will explore what a credit card against FD is and the minimum salary required to apply for one. Specifically, we will focus on the Kotak 811 Credit Card as an example.
Understanding Credit Cards Against FD
A credit card against FD, also known as a secured credit card, allows individuals to get a credit card by pledging a fixed deposit as collateral. These cards are typically easier to obtain than regular unsecured credit cards because they pose less risk to the issuing bank.
The fixed deposit serves as security for the credit limit on the card. The credit limit is usually a percentage of the FD amount, and it can vary from one bank to another. Individuals can use the card for various transactions, just like a regular credit card, and repay the outstanding balance within the billing cycle.
Minimum Salary Requirements for Credit Cards Against FD
One of the significant advantages of credit cards against FD is that they have lower income requirements compared to unsecured credit cards. Since the FD serves as collateral, banks are more lenient about the applicant’s income. However, the exact minimum salary requirement may vary depending on the bank and the type of credit card offered. cookies hoodie
For instance, the Kotak 811 Credit Card, which is a credit card against FD, does not have a specific minimum salary requirement. This makes it accessible to a wide range of individuals, including those who may not meet the income criteria for traditional credit cards.
Key Features of Kotak 811 Credit Card
The Kotak 811 Credit Card is a prime example of a credit card against FD with flexible eligibility criteria. Here are some key features of this card:
- No Minimum Income Requirement: As mentioned earlier, there is no minimum income requirement to apply for the Kotak 811 Credit Card.
- Credit Limit: The credit limit on this card is typically set at a percentage of the pledged FD amount. It gives cardholders the convenience of a credit card while helping them build or rebuild their credit history.
- Easy Application Process: The Kotak 811 Credit Card application process is straightforward, and individuals can apply online through the bank’s website or mobile app.420 PLATE OF COOKIES HOODIE
- Interest-Free Cash Withdrawals: Cardholders can withdraw cash from ATMs using the credit card against FD without incurring interest charges for a specified period.
- No Joining Fees: Many credit cards against FD, including the Kotak 811 Credit Card, do not have joining fees, making them cost-effective options.
- Build Credit History: Timely payments and responsible use of this card can help individuals establish or improve their credit score, which can benefit future financial endeavours.
Benefits of Credit Cards Against FD
Credit cards against FD offer several advantages for individuals, especially those who may not qualify for traditional unsecured credit cards due to lower income or a limited credit history. Some of the benefits include:cookies hoodies
- Accessibility: These cards are more accessible, as they have relaxed income requirements or, in some cases, none at all.
- Credit Building: Responsible use of the card helps individuals build or rebuild their credit history, which is essential for future financial transactions, such as loans or unsecured credit cards.
- Security: Since the FD acts as collateral, cardholders are less likely to accumulate unmanageable debt, providing financial security.
- Interest-Free Period: Some credit cards against FD offer interest-free periods on purchases, allowing cardholders to make payments within a specified time without incurring interest charges.
- No Risk to FD: While the FD serves as collateral, it continues to earn interest, and the bank does not typically use it to cover credit card dues unless there is a default.
Credit cards against FD are a practical solution for individuals who may not meet the minimum income requirements for regular unsecured credit cards. The Kotak 811 Credit Card, as an example, offers accessibility without a specific minimum salary requirement, making it an inclusive financial product.
These cards provide a gateway to the world of credit while helping individuals establish or improve their credit history. However, it’s essential to use them responsibly to maximise their benefits and avoid accumulating unnecessary debt. If you’re looking to access a credit card and build a credit history, consider exploring credit cards against FD as a viable option.