Are you in need of a credit card but don’t want to give up your fixed deposit (FD) with Axis Bank? Look no further, because Axis Bank offers the perfect solution – credit cards against FD. This unique offering allows you to enjoy the benefits of a credit card while keeping your FD intact. In this guide, we will take an in-depth look at the features, benefits, and everything else you need to know about credit cards against FD with Axis Bank.
Understanding Credit Cards Against FD
Credit cards against FD are a type of secured credit card where the credit limit is determined by the amount of FD you hold with the bank. Essentially, the FD acts as collateral for the credit card, making it easier for individuals with low credit scores or no credit history to obtain a credit card. With Axis Bank, you can avail a credit card with a credit limit of up to 85% of your FD amount.
How to Avail a Credit Card Against FD with Axis Bank?
Availing a credit card against FD with Axis Bank is a simple and straightforward process. You can follow these steps to get started:
- Visit the Axis Bank website or visit your nearest branch.
- Fill out the application form for a credit card against FD.
- Provide details of your FD account with Axis Bank.
- Submit the necessary documents including ID proof, address proof, and income proof.
- Once your application is approved, your credit card will be issued against your FD.
Benefits of Credit Cards Against FD with Axis Bank
Higher Credit Limit
One of the major benefits of availing a credit card against FD with Axis Bank is the higher credit limit. As your FD acts as collateral, the bank is more likely to offer a higher credit limit compared to traditional credit cards. This makes it easier for you to make big-ticket purchases and manage your expenses without worrying about maxing out your credit card.
No Credit History Required
Individuals with no or low credit history often have a hard time getting approved for a credit card. However, with credit cards against FD, your credit score is not taken into consideration. As long as you have an FD with Axis Bank, you can enjoy the benefits of a credit card without any hassles.
Lower Interest Rates
Credit cards against FD typically come with lower interest rates compared to traditional credit cards. This is because the bank has collateral in the form of your FD, making it less risky for them to lend you money. With lower interest rates, you can save on finance charges and manage your credit card debt more effectively.
Build Your Credit Score
If you have a low credit score or no credit history, using a credit card against FD can help you build your credit score. By making timely payments and keeping your credit utilization ratio low, you can improve your credit score and increase your chances of getting approved for other types of credit in the future.
How to Use Credit Cards Against FD with Axis Bank?
Using a credit card against FD is similar to using a traditional credit card. You can swipe your card or use it for online transactions just like any other credit card. However, it’s important to remember that your credit limit is determined by your FD amount, and any purchases made on your card will be deducted from your FD. Here are a few tips to make the most out of your credit card against FD:
- Use it for big-ticket purchases and emergencies.
- Keep track of your spending and make timely payments to avoid any penalties.
- Maintain a low credit utilization ratio to improve your credit score.
- Make use of rewards and cashback offers to maximize your savings.
Examples of Using Credit Cards Against FD with Axis Bank
Here are a few examples of how credit cards against FD with Axis Bank can be used:
- Sahil has an FD of Rs. 2 lakhs with Axis Bank. He decided to avail a credit card against his FD to make a down payment for his new car. With a credit limit of Rs. 1.7 lakhs, he was able to use his credit card to pay for the down payment without having to break his FD.
- Priya wanted to purchase a new laptop but didn’t have enough savings. She had an FD of Rs. 1 lakh with Axis Bank and decided to avail a credit card against her FD. With a credit limit of Rs. 85,000, she was able to buy the laptop and pay it off comfortably over the next few months.
Comparison between Credit Cards Against FD and Traditional Credit Cards
| Credit Cards Against FD | Traditional Credit Cards |
|---|---|
| Secured credit card | Unsecured credit card |
| Credit limit determined by FD amount | Credit limit determined by credit score and income |
| Lower interest rates | Higher interest rates |
| No credit history required | Credit history required |
| Can help build credit score | Can affect credit score |
| FD acts as collateral | No collateral required |
Tips and Advice for Using Credit Cards Against FD with Axis Bank
- While using a credit card against FD, it’s important to remember that you are using your own money. Make sure to keep track of your spending and make timely payments to avoid any penalties.
- Use your credit card wisely and only for necessary purchases. Avoid overspending and maxing out your credit limit.
- Make sure to maintain a good credit utilization ratio to improve your credit score.
- Keep your FD intact and don’t withdraw from it unless absolutely necessary.
- Pay your credit card bills in full every month to avoid paying high interest charges.
FAQs
Q1. Can I use my credit card against FD for cash withdrawals?
Yes, you can use your credit card against FD to withdraw cash from ATMs. However, keep in mind that the amount will be deducted from your FD and you will also have to pay a cash advance fee.
Q2. What happens if I miss a payment on my credit card against FD?
Missing a payment on your credit card against FD can result in penalties and affect your credit score. It’s important to make timely payments to avoid any negative consequences.
Q3. Can I avail a credit card against an FD with another bank?
No, you can only avail a credit card against an FD held with Axis Bank.
Q4. Is it possible to increase the credit limit on my credit card against FD?
Yes, you may be able to increase your credit limit by increasing the FD amount with Axis Bank. You can also apply for a traditional credit card once you have built a good credit score.
Q5. Can I close my credit card against FD before the maturity date of my FD?
Yes, you can close your credit card against FD at any time. However, your FD will remain locked until its maturity date.
Conclusion
Credit cards against FD with Axis Bank are a great option for individuals who want to enjoy the benefits of a credit card without having to give up their FD. With a higher credit limit, lower interest rates, and no credit history required, this type of credit card is ideal for those looking to build their credit score or manage their expenses effectively. Make sure to use your credit card wisely and keep your FD intact to reap the maximum benefits from this unique offering by Axis Bank.
