How secured credit cards can help you establish or rebuild your credit score

A secured credit card is designed for individuals looking to access credits even if they don’t have a credit history. This also helps them establish or rebuild their credit score. Unlike traditional credit cards, a secured card requires a fixed deposit (FD) as collateral, making it an accessible option for first-time users and those with low credit scores.

The IDFC FIRST Bank FIRST EA₹N Credit Card is a unique RuPay-secured virtual credit card that offers easy approval, seamless UPI integration, and cashback rewards on every transaction. It is the perfect financial companion for those stepping into the world of credit.

Understanding a Secured Credit Card
 

A secured credit card is a type of credit card backed by a fixed deposit, which acts as collateral for the credit limit. The credit limit is typically a percentage of the FD value, ensuring financial security for both the bank and the user.

The FIRST EA₹N Credit Card is an FD-backed virtual credit card that requires a minimum FD of ₹5,000 or above. The cardholder can access funds of equal to or more than the FD value. Unlike unsecured credit cards, this card does not require income proof or a strong credit history, making it accessible to everyone. As a virtual RuPay Credit Card, it allows users to make seamless online payments, scan QR codes for UPI transactions, and enjoy exclusive rewards on every transaction.

Building credit score with a secured credit card
 

A secured credit card, when used responsibly, can build your credit score or significantly improve your credit history in the following ways

Regular reporting to credit bureaus:

 Transactions made using a secured credit card are reported to credit bureaus like CIBIL, helping you build a positive credit history.

Timely payments improve credit score:

 Paying bills on time demonstrates creditworthiness and boosts your credit score over time.

Low credit utilisation ratio:

 Maintaining a low credit utilisation (using less than 30% of your credit limit) can positively impact your credit score.

No risk of rejection:

 Unlike unsecured cards, secured credit cards are issued without a credit score check, reducing the chances of rejection.

Gateway to unsecured credit cards:

 A good credit history built with a secured card can help you qualify for unsecured credit cards with better rewards and benefits.

What are the benefits of secured credit cards?
 

Secured credit cards offer numerous benefits, especially for individuals new to credit or those seeking to improve their financial standing. The FIRST EA₹N Credit Card stands out with its exceptional features, including:

Easy approval process:

 Requires only a fixed deposit, with no salary slip or credit history needed.

Cashback:

 Earn 1% cashback on all UPI transactions made via the IDFC FIRST Bank app and 0.5% cashback on UPI transactions via other apps, online spends, utilities, and wallet loads (capped at ₹500 per statement cycle).

Welcome offer:

 Get 100% cashback up to ₹500 on the first UPI transaction.

UPI convenience:

 The virtual RuPay card can be easily integrated to UPI apps and used at over 60 million merchants for payment via QR code.

Additional benefits:

 Enjoy up to 6.75 % p.a. interest on your fixed deposit, a ₹25,000 lost card liability cover, and ₹2,00,000 personal accident insurance coverage.

Exclusive discounts:

 Get 25% discount up to ₹100 on movie tickets booked via District by Zomato.

Conclusion
 

If you are new to credit or trying to rebuild your credit history, a secured credit card is the best way to start. The FIRST EA₹N RuPay Credit Card not only provides financial security, but also offers seamless digital payments, attractive cashback rewards, and essential benefits that make transactions easier and safer. With a minimal FD requirement and no credit check, it is an ideal option for anyone looking to improve their credit score while enjoying the perks of a modern virtual credit card.