Wednesday, 21 October 2026 07:15 AM
Company Update
Key Takeaways
- A secured credit card can provide access to formal credit when it may be difficult to get an unsecured card with a low CIBIL score.
- The fixed deposit acts as collateral while the card provides a separate credit limit for eligible transactions.
- Timely repayments can help build a stronger credit history when the issuer reports activity to credit bureaus.
- Keeping credit utilisation under control can support responsible credit management and gradual profile improvement.
- Multiple credit applications can result in hard enquiries that may negatively affect your credit profile.
- Periodically checking your credit report helps identify errors in account information, payment history, and personal details.
MUMBAI, IN / ACCESS Newswire / October 21, 2026 / A low CIBIL score can make it harder to access loans or unsecured credit cards on favourable terms. If you have limited credit history or past repayment issues, building a stronger credit profile takes consistent, responsible credit behaviour over time.
A secured credit card offers a way to start or rebuild your score. Since the card is backed by a fixed deposit, the deposit provides security to the lender while giving you access to a credit facility that you can use and repay regularly.
What Is a Secured Credit Card?
A secured credit card is a credit card backed by a fixed deposit. The FD acts as collateral for the credit facility, while you receive a separate credit limit based on the deposit and the issuer's terms.
The FD remains invested under its applicable terms while serving as security for the card. Your card purchases are not directly deducted from the deposit. You use the credit card for eligible transactions and repay the amount according to the billing cycle.
This structure makes a secured card different from an unsecured credit card, where approval primarily depends on factors such as your credit profile, income and other eligibility criteria.
How Can a Secured Credit Card Help with a Low CIBIL Score?
A low CIBIL Score can make it difficult to qualify for unsecured credit. A secured credit card provides an alternative by using a fixed deposit as security, allowing you to access a credit facility even with a limited or weak credit history.
Using the card responsibly gives you an opportunity to demonstrate consistent credit behaviour. When the issuer reports your repayment activity to credit bureaus, timely payments and controlled credit utilisation can contribute to building a stronger credit history over time.
A secured credit card is therefore not an automatic way to improve your score. Its benefit comes from using the credit facility responsibly and maintaining consistent repayment habits.
How to Use a Secured Card to Build Credit
Getting the card is only the first step. How you manage it determines whether it supports your credit-building efforts.
Pay Your Bills on Time
Payment history is an important factor in your credit profile. Pay your credit card bill by the due date and avoid carrying unpaid dues unnecessarily.
Keep Credit Utilisation Under Control
Credit utilisation refers to the portion of your available credit limit you use. Keeping utilisation low shows that you are not relying heavily on your available credit.
For someone rebuilding their credit profile, using the card for planned purchases that you can repay comfortably is a better approach than maximising the available limit.
Avoid Multiple Credit Applications
Applying for several credit products within a short period can result in multiple hard enquiries. Avoid applying for credit repeatedly just to increase your chances of approval.
Conclusion
A low CIBIL Score can be improved over times and efforts. A secured credit card can provide access to formal credit while using a fixed deposit as security, giving you an opportunity to demonstrate consistent repayment behaviour.
Paying bills on time, keeping utilisation under control, and avoiding unnecessary credit applications can help you work towards a stronger credit profile. Your improvement depends on your credit behaviour over time, and the information lenders report to credit bureaus.
About Us
Kotak811 is a digital banking platform that offers a range of banking products and services designed to make banking simple, convenient, and accessible. It provides solutions to help customers manage their everyday banking needs, access credit facilities, and make informed financial decisions. Its offerings include savings accounts, credit cards, and other banking services, subject to applicable eligibility criteria and terms and conditions.
Frequently Asked Questions
1. Can a secured credit card improve my CIBIL Score?
Responsible use can contribute to building a stronger credit history when the issuer reports your credit activity to the relevant credit bureaus. Timely repayments are important.
2. Does a secured credit card require a fixed deposit?
Yes. A secured credit card uses a fixed deposit as collateral. The required deposit and credit limit depend on the issuer's terms.
3. Can I get a secured credit card with no credit history?
Secured cards are designed around collateral provided through an FD, so they can be an option for people with limited or no established credit history. Eligibility requirements vary by issuer.
Media Details:
Name: Kotak811
Call us on: 1800 4100
Email: [email protected]
SOURCE: Kotak811