While it is often simple for working people to obtain a credit card, those with a bad or no credit history may be denied. A secured credit card linked to a fixed deposit (FD) might be an effective alternative in certain situations.
For those who find it difficult to get regular credit cards due to their poor credit scores (CIBIL or credit score), this other option is really helpful. Secured credit cards can be purchased by using fixed deposits as security, which provide assured returns. People can improve their CIBIL/credit ratings and establish a credit history by using a secured credit card.
The minimum deposits required to open a fixed deposit (FD) for secured credit cards vary across banks. The Step-Up Credit Card offers a credit card alternative that you may apply for with just Rs 2,000 in savings.
Step Up Credit Card
SBM Bank (India) Limited offers a secured credit card called the Step Up Credit Card, and Paisabazaar is a co-branded partner. In return for opening a fixed deposit (FD) account with SBM Bank, this card is given. Users also earn a 6.50 per cent yearly interest return on their FD.
It is planned for those who are either new to credit or find it difficult to get regular credit cards due to low credit ratings. Customers who are unable to get a credit card due to their residence or credit history might also consider this alternative.
Main Features Of Step Up Credit Card
- Flexible Credit Limit
- Digital application procedure requiring no human interaction
- No enrollment cost (except from Rs. 200 for a Rs. 2,000 FD)
- No cost for renewal
- Helps create a strong credit score
Eligibility Criteria Of Step Up Credit Card
In India, banks provide credit cards guaranteed by fixed deposits, but only to citizens who personally own these accounts. However, certain people are not eligible to use this facility:
- Hindu Undivided Family (HUF)
- Minors (under 18 years old)
- Foreign nationals
- Third parties
- Partnership firms
- Trusts
- Societies
- Depositors of tax-saving FD
- Depositors of NRI fixed deposits
How to Use a Step-Up Credit Card to Build a Credit Score?
- To start increasing your credit score, start making online transactions with your Virtual Step UP Credit Card.
- After you have your physical Step UP card, use it for offline transactions to earn additional reward points and bonuses.
- To raise your credit score, make sure you pay your Step UP Credit card bill on time.
- Consider increasing your credit limit once you’ve used up 75% of the available credit on your Step UP Credit Card.
