January 30, 2026 · 7 mins read
Santhosh Kumar
Getting a credit card can be difficult if you have a limited credit history, a low credit score, or do not have a conventional income profile. This is where a secured credit card can be useful.
Unlike traditional credit cards, secured cards are generally issued against a fixed deposit (FD). The FD acts as security for the card issuer, while you get a credit limit that can be used for everyday purchases and bill payments.
An FD backed credit card can also be an option for individuals who want to start or rebuild their credit journey. Some cards offer a digital application process, allowing eligible users to access an instant digital credit card after approval.
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A secured credit card is a credit card issued against a fixed deposit. Instead of relying only on your income and existing credit history, the card issuer uses the FD as security.
The credit limit is generally linked to the amount deposited as an FD. This can make secured cards an option for individuals who may find it difficult to qualify for conventional unsecured credit cards.
For example, the ZET Magnet FD Credit Card is described in the source as a co-branded secured credit card offered by SBM Bank against an SBM Bank FD of ₹5,000. The card is positioned for individuals who may not have a strong credit history and want to build their credit score or credit profile.
An FD backed credit card is a secured credit card where your fixed deposit serves as collateral for the credit facility.
The basic process is simple:
1. Open or maintain an eligible fixed deposit.
2. Apply for the credit card against the FD.
3. The issuer determines your credit limit based on the FD amount.
4. Use the card for eligible transactions.
5. Repay your credit card bills on time.
6. Continue earning interest on the FD, subject to the card and deposit terms.
This arrangement can be particularly useful for people who are new to credit or have limited credit history.
A secured card can offer several advantages:
1. Helps Build Credit History
Responsible use of a secured credit card and timely repayment can help you establish a credit history. This can be useful if you have never used a credit card or loan before.
2. Easier Access to Credit
Since the FD provides security to the issuer, eligibility may be more accessible than some conventional credit cards, subject to the issuer's criteria.
3.No Traditional Income Proof in Some Cases
Certain FD-backed cards may not require conventional income documentation. The source specifically states that the ZET Magnet card does not require income proof or an existing CIBIL score.
4. Digital Application and Card Access
Some secured credit cards offer a digital application journey. After approval, users may receive access to a virtual or instant digital credit card, depending on the issuer's process.
This allows you to start using eligible card features without necessarily waiting for the physical card to arrive.
5.FD Continues to Earn Interest
With an FD-backed card, your deposit remains an investment while also serving as security for the credit card. The source states that ZET Magnet FD allows users to continue earning interest on the FD while providing access to a portion of the deposit.
The application process can vary between issuers, but it generally involves the following steps:
1. Visit the card issuer's official website or app.
2. Check the eligibility requirements.
3. Select the FD-backed credit card.
4. Create or book the required fixed deposit.
5. Complete the online application and KYC process.
6. Wait for the application to be processed.
7. Access the digital card, if offered, after approval.
8. Receive the physical card as per the issuer's delivery process.
For cards offering digital onboarding, much of the application process can be completed online.
An instant online credit card generally refers to a card that can be applied for online and may provide faster approval or digital access. A secured credit card, meanwhile, is defined by the fact that it is backed by collateral such as an FD.
Therefore, these terms describe different aspects of a card.
An FD-backed card can also offer an online application and an instant digital card. However, whether you receive immediate digital access depends on the issuer and its approval process.
A secured credit card may be worth considering if you:
The source specifically positions the ZET Magnet card for individuals with poor or no CIBIL scores who want to build their credit profile.
The ZET Magnet FD Credit Card is a secured credit card offered by SBM Bank in collaboration with ZET, against an SBM Bank fixed deposit of ₹5,000. The credit limit is 90% of yourlinked to the FD amount.
According to the provided source, the card offers:
Before you apply for an FD backed credit card, compare the following:
1. Minimum FD requirement: Check how much you need to deposit to get the card.
2. Credit limit: Find out how the card issuer determines your credit limit against the FD.
3. Fees and charges: Check joining fees, annual fees, renewal charges, interest rates and other applicable charges.
4. Digital access: If you need immediate access, check whether the issuer provides an instant digital or virtual card after approval.
5. FD terms: Understand the FD tenure, interest rate, withdrawal conditions and rules for closing the deposit.
6. Credit reporting: Check whether your card usage and repayments are reported to credit bureaus, particularly if your goal is to build your credit history.
A secured credit card can be an accessible way to enter the credit ecosystem when a traditional credit card may not be suitable. By using an FD as security, these cards can provide access to credit while helping users establish responsible credit habits.
If you prefer a digital application experience, look for an instant digital credit card option that allows you to access the card online after approval. Before you apply for an FD backed credit card, compare its FD requirement, credit limit, fees, repayment terms and digital features.
Most importantly, use the card responsibly and pay your bills on time. Responsible credit card use can help you build a stronger credit history over time.
1.What is a secured credit card?
A secured credit card is a credit card issued against a fixed deposit that serves as security for the card issuer.
2. Can I get an FD-backed credit card with no credit history?
Some issuers offer FD-backed cards to individuals with limited or no credit history. Eligibility depends on the issuer's requirements. The source states that ZET Magnet does not require an existing CIBIL score.
3. What is an instant digital credit card?
An instant digital credit card is a virtual version of a credit card that may be made available digitally after approval, allowing eligible users to access card features before receiving the physical card.
4. Is an FD-backed credit card useful for building credit history?
It can be useful for establishing or rebuilding credit when the card issuer reports your repayment activity to credit bureaus. Timely payments and responsible usage remain important.
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