2 Ways to Get Credit Card for Free in India

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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