Benefits of Applying for a Credit Card Against Fixed Deposit
You might already know that you can take a personal loan against your fixed deposits, but did you know that you can apply for a credit card too?
Not only you have the option to get a credit card against your fixed deposit accounts, there are several benefits that come with it. These are:
- No Credit History Problems
One of the biggest reasons why credit card applications are rejected is because of poor credit history/credit score. However, when you apply for a credit card against your fixed deposit, then your credit score doesn’t play that big of a role. So, even if you have a poor score, you can still get a credit card easily. This is because the risk factor for the bank is balanced by the fixed deposit amount that serves as security.
- No Income Proof Necessary
Banks usually request the credit card applicants for their income proof. However, when applying against your fixed deposit, you don’t need to submit that. Once again, this is because the financial security, in this case, is maintained by the fixed deposit itself.
- Less Paperwork, Easy Approval
Applying for a credit card against your fixed deposit also minimizes the paperwork when both accounts are held at the same bank. This is because the bank already has the personal and financial details. In fact, some banks approve credit cards in this arrangement with just an identity proof.
- Best of Both Worlds
When you get a credit card against your fixed deposit accounts, then you can enjoy the benefits of the credit card along with the interest-earning benefit of the fixed deposit account itself.