Best secured credit cards for poor credit: Top 4 picks | Mint

Getting a credit card primarily requires a good credit score for issuers to approve credit card applications. A credit score signifies the creditworthiness of a credit card user; hence, it becomes an essential factor for issuers to determine your ability to repay credit card dues. There is a chance of rejection of the application if you have a poor credit score or lack of credit history.

However, having a poor credit score or no credit history does not mean you cannot get a credit card. Secured credit cards are a suitable option for those who struggle with low credit scores.

What is a secured credit card?

A secured credit card requires collateral, primarily a fixed deposit, as security to get approval for the card. This card which is issued against a fixed deposit functions like a regular credit card.

Best secured credit card options available in India

SBI Unnati Credit Card

This card requires a minimum deposit of ₹25,000. There are zero annual fees for the first four years and ₹499 will be charged from the fifth year.

ICICI Instant Platinum Credit Card

This card requires a minimum fixed deposit of ₹50,000, and the minimum tenure for fixed deposits is 180 days.

Axis Bank Insta Easy Credit Card

This card requires a fixed deposit in the range of ₹20,000 to ₹25 lakhs. There is no joining fee and annual fee levied on this card.

Kotak Mahindra Bank 811 #DreamDifferent Credit Card

This Kotak Mahindra Bank card requires a minimum fixed deposit of ₹5,000. It does not have an annual or joining fee.

Features 

1. On every online expense of over ₹100, get four reward points.
2. On every other expense over ₹100, get one reward point.
3. On fuel transactions between ₹500 to ₹3,000, get a one per cent fuel surcharge waiver.

In conclusion, if you have a poor credit score or credit history, it is advised to pay your dues on time to avoid interest charges or additional fees before planning to get a secured credit card, as a new card will also require timely payments to improve your credit score. By not clearing previous dues, getting a secured credit card will add to the expenses that might affect your financial health.

(Note: Using a credit card carries its own set of risks)