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Is It Worth To Take FD Based Credit Cards (Even If You Can Get Better Card W/o FD, With a Fees)

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beastboy

I was planning to Take BOB, FD based Credit card as most of the Banks wont do a CIBIL check
while issuing FD based Credit Card (Please correct me If i am wrong)
Leaving this CIBIL hassle.. and only concentrating on the benefit part for FD based Cards.
1.FD cards are not high on rewards in terms of points compared to the Paid variants
2.FD based cards are low value for your money in case of BOB and SBI CC

Let me explain you how
I am comparing BOB Easy Card (Fees of Rs.500/Year with Spend Based Waiver) With BOB Prime Card (FD Based)

If I do an FD in BOB account for 15k for 5 years with Quaterly compounding , the interest i will get is – 4,517.47 (5.3% FD Rate)
However if the same amount i will keep in Suryodaya Small Finance Bank , the interest i will get is – 7,563.96 (8.25% FD Rate)
Now SSFB is not a cooperative bank like PMC Bank , so upto 5 Lakh FD your money is safe as guaranteed by RBI and Govt. Of India

So the Difference is = 3046,
so even i i consider paying the card fees for 5 Years I still make a loss of Rs.546
(Though Fees waiver for this BOB card is available on minimal spend of Rs.35k / year)

I have not yet compared the points values that i can accumulate over both the cards.
If you can help on the same Its is highly appreciated.
Also Similar Comparison of SBI Credit Card and any other Bank Providing FD based cards are most welcome.

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Deal Captain Deal Captain
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@AppleFan

Our Banking , CC and Financial Experts.. Apke Vichar ?

Deal Subedar Deal Subedar
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For people like you, who already have a cibil / good credit score, fd based cc don’t make sense.
Fd based cc is beneficial only in two categories:
1) initializing credit history for people without income proof.
2) improving a bad credit history.

If anyone can suggest anything else, please comment

Deal Cadet Deal Cadet
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Great initiative +1 plus1

Deal Subedar Deal Subedar
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I dont have a fd based card bro.. but from my limited understanding,, I would say go for unsecured cards for credit history sake

Deal Lieutenant Deal Lieutenant
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Personal view- fd card only when require to build cibil score from Zero. If getting another card. I will take that card with yearly spend based waiver. 35k in a year is easily achievable.
Can anyone confirm if BOB provide card on card basis? Will take lowest variant just for offers in Amazon/Flipkart.

Deal Subedar Deal Subedar
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Never applied FD based card, But got credit cards for my Mom and wife. Both are not earning.
Wife received LTF CC offer from Kotak 811 (zero balance account) and Mom received LTF cc from Axis bank (10k Min Balance) both of them got limit > 1L.
Now their credit profile is built with good credit score.

In this case both Mom and wife didn’t had CIBIL history, But they made entry in CIBIL post card issuance.

In your case if you don’t have credit history you can follow above approach to build one.
If you have bad credit rating then FD based card is better.

Deal Captain Deal Captain
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nimod wrote:

For people like you, who already have a cibil / good credit score, fd based cc don’t make sense.
Fd based cc is beneficial only in two categories:
1) initializing credit history for people without income proof.
2) improving a bad credit history.

If anyone can suggest anything else, please comment

Wahi bola bhai … I already mentioned in Manin Post
CIBIL ka chakkar chod ke , is their any other benefit ?

Mobile Guru Mobile Guru
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Initial FD Cards are good for getting decent credit limits (new cards via card-on-card basis) for those w/o any Income proof / ITR (Not sure anything has changed now but this used to be the case sometime back…even students managed to get cards with lakhs+ limit on multiple cards)
Apart from this..i don’t think there is any other benefit for FD-Based cards (You can even build your credit portfolio w/ PayLater accounts these days like ICICI PayLater,…)

Alternatively one could opt for the pre-approved credit cards from banks like ICICI/SBI/HDFC for savings bank account holders (If you maintain a lakh or two in your account, you can get a pre-approved card w/ 1L+ limit & subsequently use this card to apply another cards)

Deal Captain Deal Captain
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A.M.A.Z.O wrote:

I dont have a fd based card bro.. but from my limited understanding,, I would say go for unsecured cards for credit history sake

Bro what is unsecured cards.. and how it impacts the credit history..
thodi explanation will be more helpful.. wink

Deal Cadet Deal Cadet
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AppleFan wrote:

Never applied FD based card, But got credit cards for my Mom and wife. Both are not earning.
Wife received LTF CC offer from Kotak 811 (zero balance account) and Mom received LTF cc from Axis bank (10k Min Balance) both of them got limit > 1L.
Now their credit profile is built with good credit score.

Dont they ask for income proof or any document for giving credit card?

Deal Subedar Deal Subedar
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beastboy wrote:

Bro what is unsecured cards.. and how it impacts the credit history..
thodi explanation will be more helpful.. wink

Secured = FD backed , unsecured = Based on income, itr.. i believe secured cards are not impactful towards credit building. This again I got to know from Dimers only

Critic Critic
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nimod wrote:

For people like you, who already have a cibil / good credit score, fd based cc don’t make sense.
Fd based cc is beneficial only in two categories:
1) initializing credit history for people without income proof.
2) improving a bad credit history.

If anyone can suggest anything else, please comment

I will add one more category. If you need high limit but can’t wait for card limit to increase automatically in usual manner.e.g.many people pay insurance premium of 70-80k+ in one go & at that time if you need a card with similarly high limit but your current card will take around an year at least to reach that level then you can do a 1 lakh fd for 2 years & get the high limit card immediately. Later when your usual card limit reaches that amount then you can close the fd based card.

Deal Captain Deal Captain
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AppleFan wrote:

Never applied FD based card, But got credit cards for my Mom and wife. Both are not earning.
Wife received LTF CC offer from Kotak 811 (zero balance account) and Mom received LTF cc from Axis bank (10k Min Balance) both of them got limit > 1L.
Now their credit profile is built with good credit score.

In this case both Mom and wife didn’t had CIBIL history, But they made entry in CIBIL post card issuance.

In your case if you don’t have credit history you can follow above approach to build one.
If you have bad credit rating then FD based card is better.

Great bro…
I recently opened Kotak 811 account.. and funded it with 10k on same day..
1. Did the banks approached you for LTF free CC or you approached the banks for the same.
2.From your experience how long it will take for Kotak guys to contact me regarding the LTF credit card ,
3.Which variants of the LTF CC were received from Kotak and Axis.
4. Duration after which the Banks contacted for CC and the approximated money added to Savings accounts

Deal Subedar Deal Subedar
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beastboy wrote:

Great bro…
I recently opened Kotak 811 account.. and funded it with 10k on same day..
1. Did the banks approached you for LTF free CC or you approached the banks for the same.
2.From your experience how long it will take for Kotak guys to contact me regarding the LTF credit card ,
3.Which variants of the LTF CC were received from Kotak and Axis.

1.Bank CC Approached us
2. >6 months
3. Don’t remember card name as wife never used it.

Deal Subedar Deal Subedar
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4V35H wrote:

Dont they ask for income proof or any document for giving credit card?

No, as per Kotak CC it’s pre-approved. No documents were submitted.
Axis card I have seen offer in netbanking applied directly, no documents nothing card delivered within 7 days

Deal Cadet Deal Cadet
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AppleFan wrote:

No, as per Kotak CC it’s pre-approved. No documents were submitted.
Axis card I have seen offer in netbanking applied directly, no documents nothing card delivered within 7 days

What average balance u maintained in both accounts?

Deal Captain Deal Captain
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AppleFan wrote:

1.Bank CC Approached us
2. >6 months
3. Don’t remember card name as wife never used it.

Bhai kuch aur Answers bache hai ? stuck_out_tongue

Mobile Guru Mobile Guru
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AppleFan wrote:

1.Bank CC Approached us
2. >6 months
3. Don’t remember card name as wife never used it.

They usually offer..League Platinum card this way
And the PVR Gold Card

The only benefit with these Kotak cards is the decent approved limit & they keep increasing the limit every 6 months (even if the usage is very limited)

Mobile Guru Mobile Guru
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4V35H wrote:

What average balance u maintained in both accounts?

For Kotak, there is no such thing as “Average Balance” for Credit Cards
I got pre-approved cc offer with literally zero balance in my zero-balance account smile

Deal Captain Deal Captain
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AppleFan wrote:

No, as per Kotak CC it’s pre-approved. No documents were submitted.
Axis card I have seen offer in netbanking applied directly, no documents nothing card delivered within 7 days

Axis bank account opened Online or in bank bro ?
Which Axis Card you got ? Did you applied for the Axis card in March 2020

Deal Subedar Deal Subedar
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4V35H wrote:

What average balance u maintained in both accounts?

Axis we have relation for more than 10 years.
Kotak is used to load money via DC for rewards. Monthly transactions >1L for 6 months.

Deal Subedar Deal Subedar
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getready wrote:

They usually offer..League Platinum card this way
And the PVR Gold Card

The only benefit with these Kotak cards is the decent approved limit & they keep increasing the limit every 6 months (even if the usage is very limited)

Yes, card name starts with League

Pro Shopping Friend Pro Shopping Friend
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Not worth at all. Earning or saving through CC is unreliable and not real like equity/MF returns.
These companies or banks will one day surprise you with change in rewards structure(when u least expect like HDFC changed during lockdown)
Get those cards which u are now eligible for and look for upgrades.

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beastboy wrote:

Axis bank account opened Online or in bank bro ?
Which Axis Card you got ? Did you applied for the Axis card in March 2020

Open Axis priority account u will get pre approved CC call after some time.
Do not worry about AMB until they downgrade, which they are not doing now a days
Same is the case with many banks like ICICI/HDFC.
Apply fr SBI C2C basis – easy way.

Deal Captain Deal Captain
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caks2006407 wrote:

Open Axis priority account u will get pre approved CC call after some time.
Do not worry about AMB until they downgrade, which they are not doing now a days
Same is the case with many banks like ICICI/HDFC.
Apply fr SBI C2C basis – easy way.

Ohkay…thanks for the infor bro.
After downgrade which version they will convert the account to ?
as initial funding of 15k is not a big amount

Deal Lieutenant Deal Lieutenant
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Mine is a different issue altogether, so kindly hear me out & suggest me should i opt for credit card ie unsecured one
My annual spendings are 10lakh+ 95%Online
CIBIL 780+
My debit card has an emi limit of 1.5lakh(both at merchant ie Amazon, Reliance digital, Sangeetha, Big bazaar etc & conversion of spends above 5k to emi) But NOT NO COST EMI
My rewards are 0.5:%,on all spends convertible to gift cards with never expiring
Never had a credit card, not received a pre-approval offer approved also
I can repay my EMIs via debit card also so 0.5% cb also applies on EMIs also
Conversion of spends costs 14.5%/anum
EMI at merchants cost 11.99 /anum
No rollover/credit free period available
No annual DEBIT CARD charges /No processing fee on conversion
Zero balance account with 80000 CREDIT LINE
15
off on select Restaurants
4Domestic lounge access /yr free

So, keeping in mind above context, Should I apply for CREDIT CARD, if Applied & got one what more benifits would be available
Kindly could anyone help me out with going ahead
I appreciate your time and effort to help me with the process
Thank you in advance

Deal Captain Deal Captain
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caks2006407 wrote:

Open Axis priority account u will get pre approved CC call after some time.
Do not worry about AMB until they downgrade, which they are not doing now a days
Same is the case with many banks like ICICI/HDFC.
Apply fr SBI C2C basis – easy way.

One more thing Bro..
As they are charing Rs.300 debit card fees..
If we dont want physcial debit card , will they remove this fees
and issue a virtual debit card free of charge ?
And what are the additional benefits of this Account over normal
10k savings account

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Theranos wrote:

Mine is a different issue altogether, so kindly hear me out & suggest me should i opt for credit card ie unsecured one
My annual spendings are 10lakh+ 95%Online
CIBIL 780+
My debit card has an emi limit of 1.5lakh(both at merchant ie Amazon, Reliance digital, Sangeetha, Big bazaar etc & conversion of spends above 5k to emi) But NOT NO COST EMI
My rewards are 0.5:%,on all spends convertible to gift cards with never expiring
Never had a credit card, not received a pre-approval offer approved also
I can repay my EMIs via debit card also so 0.5% cb also applies on EMIs also
Conversion of spends costs 14.5%/anum
EMI at merchants cost 11.99 /anum
No rollover/credit free period available
No annual DEBIT CARD charges /No processing fee on conversion
Zero balance account with 80000 CREDIT LINE
15
off on select Restaurants
4Domestic lounge access /yr free

So, keeping in mind above context, Should I apply for CREDIT CARD, if Applied dgot one what more benifits would be available
Kindly could anyone help me out with going ahead
I appreciate your time and effort to help me with the process
Thank you in advance

With SBI simply click 1.25%CB for online and 2.5% on Amazon+few others
U should get this card or Axis FK card, u will save a lot.

Deal Lieutenant Deal Lieutenant
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caks2006407 wrote:

With SBI simply click 1.25%CB for online and 2.5% on Amazon+few others
U should get this card or Axis FK card, u will save a lot.

Fine 1.25 % capped at??

Card Charges or eligibility requirements, like min salary, itr etc

Missing