Credit cards serve as both convenient and creditworthiness-determining methods. But not everyone is able to have a good credit score or even a credit history in the beginning. This is where credit cards that are secured, also referred to as FD (Fixed Deposit) credit cards, become useful. For many, they serve as stepping stones toward creating or rebuilding their credit profile. We explore the specifics of secured credit cards in this extensive article, showing you how they can open doors to financial freedom.
Understanding Secured Credit Cards
A cash deposit, which usually acts as your credit limit, backs secured credit cards. A wider range of applicants, including those with bad or no credit history, can apply for these cards because the deposit acts as security and reduces the issuer's risk. A secured credit card's ease and ability to change your financial identity are what make it so wonderful.
The Role of Fixed Deposit in secured credit card
Secured credit cards primarily depends on fixed deposits. You can obtain a credit card with a limit of 80–90% of the deposit amount when you start an FD with a bank. In addition to earning income, this FD protects your credit line, giving you a safety net in case something goes wrong.
What is magnet (secured) FD credit card
SBM Bank India offers a secured credit card called the Magnet FD credit card. Its goal is to assist people in raising or improving their credit score.
Benefits of Magnet FD Credit Cards
Earn Interest:
You can earn up to 7% p.a interest on Your fixed deposit .
this is a dual-benefit financial product since it keeps earning interest.
Credit building :
The Magnet Secured FD credit card is a great option for those who want to raise their credit score or don't have any credit history.
Insurance :
FD is secured by credit guarantee corporation (DICGC) ensuring safety for your deposit.
No income proof needed :
Because income proof is not needed for approval, a larger audience can apply.
Low-Interest Rates:
Enjoy lower interest rates compared to traditional credit cards.
Controlled spending :
With a credit limit set by your deposit, it’s easier to manage spending and stay within budget.
Other benefits:
- 1% Cashback on all transactions.
- up to 7 % interest on FD.
- No joining fee
- Lifetime free.
How to Maximize Your Secured Credit Card
Timely Payments:
Pay your bills on time to build a positive payment history.
Low credit Utilization:
Keep your credit utilization low to positively impact your credit score.
Regular Monitoring :
Check your credit report regularly to track your progress and spot any errors.
Magnet FD credit cards authorised partner of SBM BANK means your money 100% safe and secure in bank.
Magnet Fd credit card are more than just a financial tool; they’re a gateway to better financial health.
By combining the stability of a fixed deposit with the flexibility of a credit card, Magnet secured credit card is setting a new standard for financial products.
This card offers a secured line of credit with the extra advantages of earning interest on deposits and rewards on purchases, making it especially helpful for people who are new to credit or are trying to improve their credit score.
How to Apply :
1.Click the download icon below to get the Zet app, an authorized partner of Magnet Credit Card.
2. Enter a few details on the app to apply for a magnet credit card.
3. You then receive a credit card. Offers to receive 500 coins worth Rs. 500 upon credit approval are currently running on the Zet app.
