Low Salaried? 15 Credit Cards Against FD: Rs.16000 Min. Deposit

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Typically individuals apply for credit card by filling application form and sending it to the bank for further approval. This is a traditional way of application. Upon receiving the card request, banks perform a rigorous assessment and take decision on approval. Most importantly, the income of the applicant is first checked amongst many other factors.

For high income individual, this approach is not painful as their application is most likely to get accepted provided they meet all other eligibility criteria such as good CIBIL score, submission of documents such as pay slip or income tax return, and others.

However low income individuals often face problem in approval, as they are not able to meet income criteria of the bank. This typically happens when traditional approach is used for the application. However there is another way to get credit card requiring no income proof. This option is credit card against fixed deposit.

What is a credit card against fixed deposit?

It is a type of card offered to individuals having FD account with the bank. It is a type of account, which depositor open by keeping some amount with the bank and earn interest. There is a pre-defined tenure typically ranging from minimum 7 days to 5 years or more depending on the bank. The card limit is decided on the basis of the amount kept with the bank. Higher the amount, higher is the card limit.

But there is a minimum amount that needs to be kept with the bank and is not very high. Here is the table showing list of banks offering credit card against fixed deposit and the minimum amount required.

Sr. No.Credit Card NameMinimum Fixed Deposit Amount RequiredIssuing Bank
1AssureRs. 25,000Bank of Baroda
2Visa ClassicRs. 50,000Vijaya Bank
3Visa GlobalRs. 1,00,000Vijaya Bank
4UsecureRs. 25,000Union Bank of India
5UnnatiRs. 25,000State Bank of India
6PaylessRs. 15,000Development Credit Bank
7SolarisRs. 25,000Kotak Mahindra Bank (ING Vysya)
8GalaxiaRs. 1,00,000Kotak Mahindra Bank (ING Vysya)
9Aqua GoldRs. 25,000Kotak Mahindra Bank (ING Vysya)
10AspireRs. 16,000Central Bank
11CoralRs. 20,000ICICI Bank
12Instant PlatinumRs. 20,000ICICI Bank
13Insta EasyRs. 20,000Axis Bank
14SignatureRs. 10,000Andhra Bank
15Advantage PlusRs. 25,000State Bank of India

As you see the amount required is not very high and low income earning individuals can easily get card with this option.

Who should opt for such cards?

This card is best recommended for the following individuals:

  • Low income individuals – working professionals or self-earners
  • Individuals whose card application was rejected earlier
  • Students
  • First time applicants
  • Housewife
  • Senior citizens (retired)

Above mentioned categories of individuals are most likely to face problem in getting a card (when applying through the traditional approach) assuming they have no or poor income. So credit card against fixed deposit is best recommended option for them.

Check out cards for low salaried with minimum salary of Rs. 5000.

So poor income earners can definitely try this option which has many benefits and most important being the first step in building credit history. Especially first time applicants can start building credit history by making regular payments (without a miss) and fully. No minimum balance to be paid.

A good credit history has many benefits. Any future loan/credit applications are approved only when applicant has a good score.

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2017: 43 Credit Cards with Annual Income (Rs.75,000 – 10 Lakhs) Required

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For credit card or any type of loan, the annual income is the most widely used criteria to judge whether the applicant is credit worthy or not. And based on that, the quantum of loan or credit limit is evaluated by the banks.

Here is the table showing credit cards and annual income required for each by prominent banks in India and the name of the card.

Credit Card NameAnnual Income RequiredIssuing Bank
India CardRs. 75,000Bank of India
Visa GoldRs. 1,50,000Bank of India
Visa Gold InternationalRs. 1,50,000Bank of India
Axis Bank GoldRs. 1,80,000Axis Bank
Canara Visa Classic / MasterCard StandardRs. 1,00,000Canara Bank
Canara GoldRs. 2,00,000Canara Bank
Visa ClassicRs. 3,00,000Andhra Bank
Visa PlatinumRs. 5,00,000Andhra Bank
Visa SignatureRs. 10,00,000Andhra Bank
RuPay PlatinumRs. 1,80,000Andhra Bank
RuPay SelectRs. 5,00,000Andhra Bank
TitaniumRs. 2,00,000Bank of Baroda
SignatureRs. 12,00,000Bank of Baroda
Bombay BullionRs. 3,00,000Bank of Baroda
Elite PlatinumRs. 4,00,000Bank of Baroda
Select PlatinumRs. 6,00,000Bank of Baroda
Gold for SalariedRs. 1,80,000Corporation Bank
Gold for ProfessionalRs. 1,80,000Corporation Bank
Gold for Senior CitizenRs. 1,20,000Corporation Bank
Gold for Self EmployedRs. 2,00,000Corporation Bank
Visa Classic for SalariedRs. 60,000Vijaya Bank
Visa Classic for Self EmployedRs. 50,000Vijaya Bank
Visa Global for SalariedRs. 1,20,000Vijaya Bank
Visa Global for Self EmployedRs. 1,00,000Vijaya Bank
MasterCard TitaniumRs. 1,50,000Central Bank of India
MasterCard WorldRs. 5,00,000Central Bank of India
Visa GoldRs. 1,50,000Central Bank of India
Visa PlatinumRs. 5,00,000Central Bank of India
RuPay PlatinumRs. 1,50,000Central Bank of India
RuPay SelectRs. 5,00,000Central Bank of India
GoldRs. 1,50,000Indian Bank
ClassicRs. 1,50,000Indian Bank
Gold for SalariedRs. 1,50,000Syndicate Bank
Gold for Self EmployedRs. 2,00,000Syndicate Bank
Classic for SalariedRs. 60,000Syndicate Bank
Classic for Self EmployedRs. 1,00,000Syndicate Bank
Classic for Senior CitizenRs. 60,000Syndicate Bank
SignatureRs. 5,00,000Union Bank of India
GoldRs. 3,00,000Dhanlaxmi Bank
Gold - Self EmployedRs. 4,00,000Dhanlaxmi Bank
Platinum - Salaried & Self-EmployedRs. 6,00,000Dhanlaxmi Bank
EmpowermentRs. 80, 000Jammu and Kashmir Bank
EmpowermentRs. 1,50,000Jammu and Kashmir Bank

It’s a myth that only high income earning individuals get credit card. The table above shows that if the card applicant has poor salary (e.g. less than Rs. 10,000 or 15,000 per month i.e. Rs. 1,20,000 or Rs. 1,80,000 per annum respectively), then also he/she can apply and get card approval. This is subject to the condition that the applicant also meets other eligibility criteria such as good credit score, submits all valid documents, etc.

Note: The income mentioned above is as on October 2017. Banks keep on changing the terms and conditions and processes each application differently as per their rules. So if credit card application of low income earner gets approved that does not mean, application of other will also get approved. This is because every application is different. For more clarifications, please contact respective banks.

Also, most banks do not specify income for many of their cards. You can visit respective bank or their website for details on more cards. There is a possibility that you may get better option than the ones listed above.

If card application gets rejected then no need to worry. There are few other options to get card as follows:

Add-on card: If any of the applicant’s family member (brother, sister or parents) has a credit card and a good CIBIL score, then he/she can apply for a supplementary card. But remember that, any default made by the add-on card holder will impact the credit score of the primary card owner. Banks will not ask for income proof of the supplementary applicant.

Credit card against fixed deposit: You just need a FD account with the applicant bank. There is a minimum amount that you need to keep with the bank in order to get the card. Depending the amount, the card limit is set. There is no income proof required and documentation required is minimum since most of the details of the FD account holder are already held by the bank.

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2017: 35 Credit Cards with Minimum Monthly Salary(Rs.5000 – 1Lakh)

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There are many queries asked by card applicants such as what is the minimum salary for credit card in India? And many individuals assume that credit card approval is mainly dependent on income and its proof submitted. And only high income earners get credit card approved. However this is not true.

There are cards for low salary earning individuals as well. And here is the table showing list of 35 credit cards along with minimum annual income starting from Rs. 5000 per month to Rs. 1,00,000 (1 lakh) and its equivalent monthly income required by the banks.

Sr.No.Credit Card NameMinimum Annual Salary RequiredIssuing BankEquivalent Monthly Income Required
1India CardRs. 75,000Bank of IndiaRs. 6,250
2Visa GoldRs. 1,50,000Bank of IndiaRs. 12,500
3Visa Gold InternationalRs. 1,50,000Bank of IndiaRs. 12,500
4Axis Bank GoldRs. 1,80,000Axis BankRs. 12,500
5Canara Visa Classic / MasterCard StandardRs. 1,00,000Canara BankRs. 8,333
6Canara GoldRs. 2,00,000Canara BankRs. 16,667
7Visa ClassicRs. 3,00,000Andhra BankRs. 25,000
8Visa PlatinumRs. 5,00,000Andhra BankRs. 41,667
9Visa SignatureRs. 10,00,000Andhra BankRs. 83,000
10RuPay PlatinumRs. 1,80,000Andhra BankRs.15,000
11RuPay SelectRs. 5,00,000Andhra BankRs. 25,000
12TitaniumRs. 2,00,000Bank of BarodaRs. 16,667
13SignatureRs. 12,00,000Bank of BarodaRs. 1,00,000
14Bombay BullionRs. 3,00,000Bank of BarodaRs. 25,000
15Elite PlatinumRs. 4,00,000Bank of BarodaRs. 33,333
16Select PlatinumRs. 6,00,000Bank of BarodaRs. 50,000
17Gold Rs. 1,80,000Corporation BankRs.15,000
18Visa ClassicRs. 60,000Vijaya BankRs. 5,000
19Visa GlobalRs. 1,20,000Vijaya BankRs. 10,000
20MasterCard TitaniumRs. 1,50,000Central Bank of IndiaRs. 12,500
21MasterCard WorldRs. 5,00,000Central Bank of IndiaRs. 25,000
22Visa GoldRs. 1,50,000Central Bank of IndiaRs. 12,500
23Visa PlatinumRs. 5,00,000Central Bank of IndiaRs. 41,667
24RuPay PlatinumRs. 1,50,000Central Bank of IndiaRs. 12,500
25RuPay SelectRs. 5,00,000Central Bank of IndiaRs. 25,000
26GoldRs. 1,50,000Indian BankRs. 12,500
27ClassicRs. 1,50,000Indian BankRs. 12,500
28Gold Rs. 1,50,000Syndicate BankRs. 12,500
29Classic Rs. 60,000Syndicate BankRs. 5,000
30ClassicRs. 60,000Syndicate BankRs. 5,000
31SignatureRs. 5,00,000Union Bank of IndiaRs. 41,667
32GoldRs. 3,00,000Dhanlaxmi BankRs. 25,000
33PlatinumRs. 6,00,000Dhanlaxmi BankRs. 50,000
34EmpowermentRs. 80,000Jammu and Kashmir BankRs. 6,666
35EmpowermentRs. 1,50,000Jammu and Kashmir BankRs. 12,500

So one thing to note is, income is just one of the eligibility criteria to get a credit card. Evaluation of credit worthiness of the applicant by the card companies is done on the basis of other requisites as well. These include:

  • Credit score
  • Age
  • Type of job (permanent or contractual)
  • Income is validated on submission of salary slip for last 3 months.

Additional reading: Tips on getting credit card with no income proof

Some banks also ask for (apart from card application form):

  • Income tax return document
  • Last 6 months bank statement
  • ID and address proof
  • Photograph

So as you can see above even for a monthly salary of Rs. 5000, credit cards are available. Even though very few banks offer cards for poor income earners the opportunity to start building credit history is important even though the credit limit is very low.

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6 Ways to Get Credit Card for Poor Salary/No Income Proof

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Your E-mail box is often flooded with credit card offers. But getting an offer and actually owning a card is not a straightforward process. There are multiple criteria considered by the banks before approving a card. Such as:

  • Income
  • Credit Rating
  • Age
  • Employer and so on…

However income of the applicant is the most commonly used parameter for credit card approval. There is a minimum income threshold to get a credit card. Individuals with low salary often face difficulty in getting a credit card compared to a high earning individual. Based on the income repayment capacity of the applicant is evaluated and decision to approve the card is taken. For a high income individuals, chances of card denial are low because of the salary requirement.

Moreover there are many employers who do not provide salary slip to their employees, which is actually a problem when the employee applies for a card.

So how can individuals with poor salary or no income proof get credit card?

Following are the ways to get a credit card if someone is earning a poor salary typically (less than Rs. 10000 per month):

Apply in banks offering cards to low salaried individuals: Not every bank or card requires high income in order to become eligible. Listed in the below table are 12 cards you can apply for if your monthly salary is less than Rs. 5000:

Sr. NoCredit Card NameMinimum Annual Income RequiredEquivalent Minimum Monthly IncomeIssuing Bank
1India CardRs. 75, 000Rs. 6,250Bank of India
2Canara Visa Classic / MasterCard StandardRs. 1,00,000Rs. 8,333Canara Bank
3Gold for Senior CitizenRs. 1,20,000Rs. 10,000Corporation Bank
4Visa Classic for SalariedRs. 60,000Rs. 5,000Vijaya Bank
5Visa Classic for Self EmployedRs. 50,000Rs. 4,166Vijaya Bank
6Visa Global for SalariedRs. 1,20,000Rs. 10,000Vijaya Bank
7Visa Global for Self EmployedRs. 1,00,000Rs. 8,333Vijaya Bank
8BharatRs. 72,000Rs. 6,000Indian Bank
9Classic for SalariedRs. 60,000Rs. 5,000Syndicate Bank
10Classic for Self EmployedRs. 1,00,000Rs. 8,333Syndicate Bank
11Classic for Senior CitizenRs. 60,000Rs. 5,000Syndicate Bank
12Empowerment for SalariedRs. 80, 000Rs. 6,666Jammu and Kashmir Bank

Salary account bank statement: If employer gets salary credited directly in the bank account but no salary slip is issued then applicant can show bank statement of the last 6 months. Every credit in the bank account will have employer name, which should be an acceptable income proof.

Check out – 26 ways to earn extra money in India.

Cheque: If you get salary in cheque with employer’s name, stamp and signature then make sure every month you take photocopy of the issued cheque. Also make a practice to deposit the cheque on a fixed date every month and later show bank statement as a proof. Photocopy should be an acceptable proof. Banks should accept this as a income proof, if salary slip is not issued.

Show offer letter: If employee doesn’t get salary slip or earns in cash but has high income then you can also produce offer letter to the card issuing bank along with above mentioned two documents.

Additional reading: 7 consequences of faking documents to get credit card.

Add-on: If any of your family member has a credit card then you can ask him/her to take supplementary credit card. Bank will not ask for salary slip or bank statement. They will only check primary card holder’s credit usage and accordingly issue an add-on card. This is also an excellent option to build or improve credit score.

Credit card against FD: This is an excellent option to get credit card requiring no income proof such as salary slip or bank statement. Many banks in India offer secured cards with credit limit 80%-90% of the FD amount. However every bank has a minimum fixed deposit amount limit and a tenure of minimum 180 days and most importantly FD should be on the card applicant’s name.

Here are few cards offered against FD by various banks in India:

Sr. No.Credit Card NameMinimum Fixed Deposit Amount RequiredIssuing Bank
1PaylessRs. 15,000Development Credit Bank
2CoralRs. 20,000ICICI Bank
3Instant PlatinumRs. 20,000ICICI Bank
4Insta EasyRs. 20,000Axis Bank
5SignatureRs. 10,000Andhra Bank

So as you can see getting a credit card when you are earning poor salary is not difficult. But remember that cards are approved not just on the basis of salary. There are multiple criteria and documents which banks might ask on a case to case basis before approving the card.

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Fake Salary Slip for Credit Card: 7 Career Risks

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Your income plays a key role in getting you a credit card. An individual with low income has to face many difficulties for card approval because poor salary means individual’s repayment capacity may not be good, in the eye of the bank.

On the other hand, many employers in India do not issue salary slip which is more problematic because for any bank approving credit card without income proof is risky since there is no way to evaluate credit worthiness of the applicant.

However the benefits and free money offered by the card company lures many. And many people often fake salary slip to get a credit card without by misusing company’s official stamp or letter head without thinking about the consequences of misdoings. Ideally such individuals show higher income on the pay slip and get cards with higher credit limit. In fact many a times, bank or third party agents ask applicants to produce counterfeit pay slip in order to meet their targets.

There are many repercussions of submitting fraudulent salary slip and any type of fake document while applying for a credit card as follows:

Job loss: After submitting documents required for credit card, banks or third party service do a thorough verification check for each and every proof submitted. If employer comes to know that an employee has generated fake pay slip, straightaway employee will be removed from the company. More consequences will follow.

Legal trouble: Bogus papers can also land you in legal trouble. Employer can sue the employee since he/she has forged the official document, signature and used official stamp to show high income. Even banks can file a legal case for submitting such fake documents. A case under Sections 420, 465, 465, 467 and 471 of the IPC will be applied.

Police case: If not legal case, either the employer or bank may file a FIR against such applicants.

Check out: Credit cards for low income earners.

No financing in the future: Even if you manage to get credit card but later default on the payments, banks will submit your report to CIBIL. And later during recovery process, if banks come to know the fraudulent documents were submitted, then this will also be reported to credit rating agency. And this would be a financial nightmare. Almost every bank verifies CIBIL record before approving any application. If bank comes to know about previous history, then they will not offer any type of finance.

Additional Read: consequences of credit default

New job: Getting a new job will become extremely difficult. This is because any prospective company will ask for previous employers offer letter, salary slip, and verify whether applicant has any police or legal case against his/her name. Non-availability of these documents because of termination from previous employer will naturally create a problem.

Passport denial: Whenever passport application is made, a thorough verification check is done to check any legal or police case is registered on the applicant’s name. Passport application will get rejected in such cases.

Visa trouble: Not just the passport, moving out of the country will also become extremely difficult. Whenever visa application is made, thorough investigation is done to verify applicant especially legal or police case against the applicant. No matter how talented you are, no country would ever want individual with criminal case against him/her to enter their country.

So bottom line is to be honest. Misrepresentation of facts for personal gain would never do any good and instead screw up your life in someway or the other.

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SBI Student Plus Advantage Credit Card: No Fees, Free Add-On Card & more

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State bank of India is one of leading public sector banks in India. Amongst many services offered by SBI, credit card is one of them. The bank offers credit cards for various purposes such as travel, shopping, lifestyle and many others.
However it is one of the very banks offering credit card for students. The name of the card is – SBI Student Plus Advantage Card.

Benefits and features offered by Student Plus Advantage card:

No joining and annual fee: Expensive cards carry very high joining and annual fee due to the benefits offered. However in case of Student Plus Advantage card both these fees of NIL. But if the student does not spend more than Rs. 35, 000 in the previous year then charge of Rs. 500 will have to be paid during renewal.

Supplementary card at free of cost: If the student maintains a good repayment history then SBI offers add-on card option as well. That is, family member of the student (father, mother, siblings) can get credit card for free. Add-on card is an excellent feature for someone with credit history to start building credit score.

Additional reading: Credit card for Indian students travelling abroad.

International usage: Card can also be used for international purchase. So this is a good opportunity for students travelling in countries like USA/Australia or others where credit card is the most common form of payment accepted for most purchases such as insurance premium, gas, grocery etc. However remember that student should avoid making foreign transaction and ATM cash withdrawal using this card. This is because there is a charge of 3.5% and 2.5% to 3% respectively. 3% is the cash advance fee when card is used for withdrawing money from an international ATM.

Read more on travel cards for Indian students.

Balance transfer: If the student is having any other card with huge balance then balance transfer (BT) facility can be used. Benefit is that, the rate of interest is low and balance can be repaid in EMI.

Flexi-pay option: If student makes any big purchase in any month and full repayment is difficult then SBI offers an exciting feature called flexi-pay wherein student can convert the transaction into easy installments. The tenure available is 6, 12, and 24 months. Minimum limit for the transaction amount is Rs. 2500, which seems to be a better deal.

Reward points: Student gets 10X reward points on using the card for making payment at departmental or grocery store both in India and abroad.

Eligibility:

  • Applicant must be the education loan customer of SBI
  • He/she should be 18 years of age

Should student use credit card in India?

Credit card is a good option to start building credit score. Assuming student doesn’t have any type of loan/credit repayment history, having a credit card is a recommended to start building history. However good CIBIL score is possible only when the monthly bills are paid on time, in full, and credit limit is not over crossed.

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11 Credit Cards for Businessmen in India

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Like salaried individuals, businessmen or self-employed individuals (doctors, freelancers, shopkeepers and others) also need credit card for making payment for day to day expenses.

There are many banks in India who offer credit cards especially for business.

Listed in the below table is the list of exclusive credit cards for businesses:

Bank NameCredit Card Name
HDFC BankBusiness MoneyBack
HDFC BankBusiness Regalia
HDFC BankCorporate Platinum
HDFC BankCorporate Card
Axis BankMY Business
ICICI BankJet Airways Business Advantage
ICICI BankBusiness Platinum
ICICI BankBusiness Gold Card
Standard CharteredPriority Bank Visa Infinite
State Bank of IndiaPlatinum Corporate card
IndusIndBusiness Gold Credit

What to look for in a credit card for business?

If most of your spends will be through credit card, then look for following features in the card.

High credit limit: Although the limit on the card is decided by the banks based on the income and other factors such as (past repayment history, credit score etc.), businessmen should try to get a card with high credit limit. This is recommended to keep business running even in difficult times, when possibility of getting a loan is less.

Insurance cover: Many business credit cards such as Standard Chartered Priority Banking Visa Infinite Credit Card – provides complimentary travel and medical insurance of up to US Dollars 200,000 whenever international trip is made.

Cashback: Chose a card offering cashbacks i.e. certain percentage of the amount spent is paid back to the owner of the card. This money can then be used to buying other essential stuffs. But before checking this feature remember that whether the cash back percentage on everything you purchase or you need to spend pre-fixed amount in order to get X amount back.

Waiver on fees: Try to get a card offering full waiver on services such as duplicate statement, checking balance enquiry, card replacement etc.

Interest free period: It is recommended to pay your monthly bills before the due date in order to avoid interest and negative impact in the CIBIL record. Since your sole income would be from the business, it is quite possible that you may face ups and downs. For e.g. you face a dip in income, get delayed payments, etc. In such situations, it is very likely that you may not be able to pay monthly repayments on time and at the same time increase the usage of credit card. In such situations, look for card offering a high interest free period. This is nothing but number of days provided to pay off the bill (every month) before interest rate is applied on the balance.

Fuel surcharge waiver: If your business involves lot of travelling by roads and using own vehicle, then fuel surcharge waiver card is worth recommended. If you calculate savings, it will be significant.

Reward points: If you have decided to carry out purchases related to day operations such as buying stationary, office supply items etc. then look for a card giving high reward points.

Free miles: If you frequently travel through air, then look for a card offering free air miles and lounge access (domestic and international). Many companies also offer free miles when high amount is spent through the card.

Foreign currency and ATM cash withdrawal fee: Most of the banks charge 3.5% cross currency mark-up fee. However being a businessmen or self-employed it is quite common to transact in non-Indian currency. Therefore look for a card offering lowest foreign currency markup fee on international usage. For e.g. SBI Card Elite Advantage has a charge of 1.99% on international usage.

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2 Ways to Get Credit Card for Free in India

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In India or even in any foreign country, credit card application is approved based on the credit score and income of the applicant.

However not everyone can get credit card if he/she has no income source. Even if the credit score is good, chances of rejection are high due to no income. There could be many reasons for having no earning source such as – loss of job or applicant is a first timer etc. However this does not mean such individuals cannot get credit card.

Ever heard of getting free credit card without requiring the applicant to furnish income proofs such as salary slip, IT returns or any other?

There are two ways to get credit card for free in India and no credit score is checked:

Add-on card:

This is also called as supplementary card. And it is offered to the relative of the primary card holder of the same bank. The condition is that primary card owner should have a good repayment history and a good credit score. Not all banks offer such cards.

Benefits and features available on primary card are also applicable to the secondary. Application process is very simple and not like traditional card.

Against fixed deposit:

If the applicant has been holding fixed deposit account with the applied bank, then he/she can get credit card against fixed deposit. That is, you are keeping the money in the account as a security. For such cards, limit is 80%-85% of the FD amount. So if someone has Rs. 1, 00,000 (1 Lakh) in the account then he/she can get credit limit of around Rs. 80, 000.

Additional reading: Best cards against FD.

But remember that every bank has minimum amount and period for which the FD account is active. So basically, you cannot open FD account today and apply for credit card tomorrow.

These free credit cards come with few limitations:

  1. Credit limit is low. In case of supplementary card, limit is shared between the cards.
  2. In case of add-on card, if the secondary card holder defaults on the payment, then primary holder will have to make repayment and also his credit score will get impacted. So be careful for whom you are applying for a card. Monthly statements are consolidated.
  3. Add-on card cannot be taken for friend. Only spouse, parents, or children can be granted such cards.

Both these cards are a good solutions for improving the credit score.

However remember following points in mind, irrespective of the card you use:

  1. Always repay bill on time and fully. There should be on outstanding bill.
  2. Do not over cross the credit limit.
  3. Use auto-debit feature for bill payment. Benefit is that you do not have to remember due date.
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4 Contactless Credit Cards in India: Benefits, Features, Cons

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There are many types of payment methods used online or offline by the consumers such as cash, debit card, credit card and others.

Each of these options has its own pros and cons. However the most widely used option is credit card due to the benefits involved such as – cashbacks, reward points, etc. But credit card has its limitations too.

Take for example common scenario seen in shopping malls, clubs, hotels, and other places where credit card is swiped and the owner enters the pin for making the payment. However the security threat associated with such payment is very weak. Anyone including the people standing nearby can see your PIN and use it unethically and may lead to fraud.

Enter into a PIN-free world – Fast, Secure, and Easy.

To minimize such frauds/thefts, few banks in India offer contactless credit card. Such type of card requires the owner to just tap or wave the card at point of sale (PoS) terminal. There is no need to swipe and enter PIN.

Listed in the below table are the contactless credit cards available in the Indian market.

FeaturesICICI Bank CoralICICI Bank HPCL Coral VisaSBI SignaturePNB - Wave and Pay
Annual feeRs. 500Rs. 199 (from second year onwards)Rs. 4000NA
Joining feeRs. 1000Rs. 199Rs. 4000NA

How to use contactless credit card for making the payment?

  1. Merchant will enter the amount on the contactless Point of Sale (PoS) machine.
  2. While making payment, you just need to tap or hold the card within 4 centimeter distance. Make sure there is a little symbol )))) on the machine.
  3. If the payment is successful, you will see a green light or beep sound from the PoS device.
  4. Receipt will be generated on the spot. In addition to this, card holder will get SMS/E-mail on their registered details containing the transaction details.

Other benefits apart from contactless transaction:

This card can be conveniently used in two ways: Tapping/Waving (contactless way) and Swiping/Dipping and then entering PIN (contact payment). And it’s upto the user to decide, which option he/she wants to use.

The moment you wave or tap, the whole process happens within seconds. That is, the transaction takes place fast compared to traditionally used technique of swiping.

Since the card is not required to be handed over to the merchant at the PoS, the security is high. And card skimming (technique used by fraudsters) is largely minimized.

Even if the card gets tapped or waved multiple times, the amount is still deducted once.

Like other cards, they can also be used for ATM cash withdrawal. However owner has to follow traditional process i.e. enter card in the ATM terminal, then enter PIN & then amount.

Cons:

If card gets stolen then anyone can use it. This is why it is recommended to block the card immediately it gets stolen to prevent loss.

There is a maximum limit applied for each transaction. This is as per the rule set by Reserve Bank of India to prevent misuse. For e.g. SBI signature has a maximum cap of Rs. 2000 per transaction.

Not every merchant in India has contactless card machine.

How to make payment using contactless credit card, if the merchant does not accept such card?

At such places, you will have to pay using traditional method i.e. by entering PIN after the merchant enters transaction amount and swipes the card and asks to enter the PIN.

Since this card has a transaction limit associated, it is best recommended to use it for everyday purchases to save time.

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Credit Card without Income Proof: Against FD & Add-on Card

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Getting a credit card or loan requires applicant to show income proof. This is a mandatory requirement by every lender. Based on the income, lenders evaluate the repayment capacity. Higher the income, higher is the credit limit and vice versa. And better would be the repayment capacity of the applicant.

However this is not always true. If credit history is poor, then chances of rejection are high. Because lenders hate defaulters as such individuals are not credit worthy and may become non-performing asset (NPA) in the future.

However there are many conditions when applicant is not having income proof or salary slip and wants credit card. Possible scenarios are:

  • Recently got the job and salary is not credited
  • Employer does not provide salary slip
  • Applicant is jobless at the time of application

So in such cases, how can you get credit card without income proof?

Not many of us are aware that there are two ways to get a card with no income/salary proof.

  1. Against fixed deposit
  2. Add-on card

Let’s explore both these options in detail.

Against fixed deposit:

If the applicant holds fixed deposit account with the bank, then he/she can apply for credit card against FD. Such card is also called as secured credit card since you are keeping the money in your fixed deposit account as a security.

Many lenders offer this option. And here is the list of few banks and name of the card:

  • ICICI Bank – Coral
  • Kotak Mahindra Bank – Galaxia
  • Andhra Bank – Signature
  • Bank of Baroda – BOB Cards Assure
  • State Bank of India – Unnati

Get the detailed list of such cards.

How credit card against fixed deposit works?

The basic requirement is to have FD account with a pre-defined amount for a fixed minimum tenure. This amount is then used to calculate the credit limit. And typically banks offer a limit which is 75%-85% of the amount. Higher the amount kept in the account, higher would be the limit and vice-versa.

Few features of such cards are:

  • Minimum documentation
  • Lower interest rate
  • And as mentioned above, there is no need to provide income proof
  • You do not lose out on the interest on the FD
  • Rewards points and cashbacks are offered

Supplementary or add-on card:

You can get this card only when family member holds credit card with the applicant bank with a good credit history. For e.g. if the husband has axis bank credit card then he can apply for a supplementary card on wife/children/parents name.

Few features of add-on card:

  • Benefits offered on primary card are available in the add-on card as well.
  • Many such cards do not have any joining or annual fee
  • Minimum documentation work is required compared to traditional way of application

Risks associated with supplementary credit card, which primary owner should be aware of:

Payment default: If the add-on card holder defaults the payment, then it will impact the credit rating of the primary holder. Moreover the credit limit will be reduced and higher interest rate would be applied. And most importantly there is a risk of future loan/credit card application getting rejected.

Over spending: If card spent is beyond the specified limit, then it will impact the credit score of the primary owner.

Late or partial repayment: Missed or late payment or not making full payment should be strictly avoided. Because a single scenario will result in a late payment charge. And frequent behavior will result in negative credit impact.

Many banks in India offer add-on credit cards:

  • Axis Bank
  • State Bank of India
  • Citibank

Irrespective of the credit card, remember to make monthly payment on time and fully. This will help in achieving a good credit score.

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