Best Secured Credit Card in India : Check Features & Rewards 2024

For people who want to establish or repair their credit, secured credit cards are a great financial instrument. In contrast to conventional credit cards, secured cards call for a cash deposit as security, which frequently determines the credit limit. Many secured credit cards nevertheless have alluring rewards programs with points for regular purchases, even with this restriction.

These bonuses can greatly increase the card's worth and enable users to take advantage of discounts, cash back, and other advantages. To get the most out of this financial tool, you must know how to optimize rewards points on a secured credit card. Cardholders can earn significant points that help them achieve their overall financial objectives by selecting the appropriate card and using it wisely.

Top 10 Best Secured Credit Cards in India?

1. SBI Advantage Plus Card
2. Axis Insta Easy Credit Card
3. SBI ELITE Credit Card
4. SBI SimplySAVE Credit Card
5. SBI Prime Credit Card
6. SBI SimplyCLICK Credit Card
7. SBI Unnati Credit Card
8. Bank of Baroda Prime Credit Card
9. Flipkart Axis Bank Credit Card
10. Kotak Mahindra Bank?

1. SBI Advantage Plus Card

The SBI Advantage Plus Credit Card stands out among secured credit cards by offering a high credit limit of up to 85% of the fixed deposit amount. Ideal for users seeking both domestic and international usage, this card provides extended credit options, allowing users to carry forward amounts at a low interest rate. With features like easy money facilities and credit transfers, it provides flexibility and convenience. It’s designed for individuals who want a secured card with substantial credit limits and global acceptance. The card's broad utility and range of benefits make it a strong choice for both everyday use and international travel.

Joining Fee: ?500 Renewal Fee: ?500 Best Suited For: Users seeking a high credit limit with global usability Welcome Benefits: Encash facility worth ?25,000 or ?50,000

2. Axis Insta Easy Credit Card

The Axis Insta Easy Credit Card is tailored for those who prefer straightforward secured credit card benefits. Offering a credit limit up to 80% of the fixed deposit, this card provides a simple and efficient solution for users who need a reliable credit option. It includes a 1% fuel surcharge waiver, making it a practical choice for those with regular fuel expenses. The card’s features are designed to offer ease of use and a decent credit limit without complex requirements. It’s particularly suited for users who want to manage their expenses efficiently while benefiting from basic rewards and convenience features.

Joining Fee: ?500 Renewal Fee: ?500 Best Suited For: Users who spend frequently on fuel Welcome Benefits: 15% discount on dining

3. SBI ELITE Credit Card

The SBI ELITE Credit Card is a premium secured card offering extensive benefits for high spenders. With global acceptance at millions of outlets, it provides significant rewards, including a gift voucher and substantial bonus points on various purchases. Users benefit from access to airport lounges, fraud liability cover, and reward points for dining, groceries, and other expenses. This card is designed for those who spend frequently and seek luxury perks along with a high rewards rate. It’s ideal for frequent travelers and high spenders who want to maximize their credit card benefits with premium features and extensive global usability.

Joining Fee: ?4,999 Renewal Fee: ?4,999 Best Suited For: Frequent spenders and travelers Welcome Benefits: ?5,000 gift voucher

4. SBI SimplySAVE Credit Card

The SBI SimplySAVE Credit Card provides a balanced mix of rewards and cost-effectiveness. As a secured credit card, it offers a welcome cashback on the first ATM withdrawal and the chance to earn reward points on every spend. The card’s annual fee is waived for users who meet the spending threshold, making it a practical choice for budget-conscious individuals. It includes benefits such as extra reward points on specific categories and a fuel surcharge waiver, catering to users who want to maximize rewards while keeping costs manageable. This card is perfect for those who value a combination of rewards and savings.

Joining Fee: ?499 Renewal Fee: ?499 (waived on spending ?1 lakh annually) Best Suited For: Reward seekers and budget-conscious users Welcome Benefits: ?100 cashback on first ATM withdrawal

5. SBI Prime Credit Card

The SBI Prime Credit Card is a secured card offering a range of premium benefits. It includes access to domestic and international airport lounges, reward points on various categories, and a generous welcome gift. The card provides benefits such as a fraud liability cover and bonus reward points for high spenders. It’s designed for users who frequently travel and spend on dining, groceries, and other high-value purchases. With its extensive perks and high rewards potential, it’s ideal for those who want a comprehensive credit card experience with significant rewards and luxury features.

Joining Fee: ?2,999 Renewal Fee: ?2,999 Best Suited For: High Spenders and Frequent Travelers?

Welcome Benefits: ?3,000 e-gift voucher

6. SBI SimplyCLICK Credit Card

Online shoppers looking for savings and incentives can consider the SBI SimplyCLICK Credit Card . Along with a gift card as part of its welcome bonuses, it gives 10x reward points on online purchases at well-known e-commerce sites. For those who purchase online frequently, the card is an affordable option because the yearly charge is eliminated if they achieve the spending threshold. Bonuses include e-vouchers for hitting expenditure targets and a waiver of the fuel surcharge. This credit card offers benefits and discounts that are year-round, making it ideal for individuals who wish to optimize their online purchase rewards.

Joining Fee: ?499 Renewal Fee: ?499 (waived on spending ?1 lakh annually) Best Suited For: Online shoppers Welcome Benefits: ?500 gift card

7. SBI Unnati Credit Card

The SBI Unnati Credit Card is a secured card that offers a unique combination of no annual fee for the first four years and reward points on every purchase. It is issued against a fixed deposit and provides benefits such as cash back for high spending and a fuel surcharge waiver. Designed for users who want a cost-effective credit card with added rewards and no initial fee, it is ideal for those new to credit cards or those seeking a low-cost option with valuable perks. Its features make it a practical choice for both new and experienced cardholders.

Joining Fee: ?0 Renewal Fee: ?0 (for first four years) Best Suited For: Budget-conscious users and those new to credit cards Welcome Benefits: ?500 cashback for spending ?50,000 annually

8. Bank of Baroda Prime Credit Card

With no yearly fees and clear perks, the Bank of Baroda Prime Credit Card provides a secured credit option. Purchases over a specific amount can be converted into EMIs, and users can take advantage of interest-free credit for up to 50 days. Benefits include a remission of the fuel surcharge and complimentary add-on cards. Those looking for a no-fee credit card with useful features and an easy-to-understand reward system should apply for this card. Customers looking for simple rewards and cost-free credit card spending management can consider it.

Joining Fee: ?0 Renewal Fee: ?0 Best Suited For: Users seeking a no-fee credit card with EMIs Welcome Benefits: Personal Accidental Death Coverage

9. Flipkart Axis Bank Credit Card

The Flipkart Axis Bank Credit Card is tailored for frequent Flipkart and Cleartrip users, offering notable cashback on purchases made through these platforms. It provides 5% cashback on Flipkart and 4% at partner merchants, making it ideal for users who regularly shop online and travel. Additional benefits include discounts on dining and access to domestic airport lounges. This card is designed for those who want to maximize rewards on their online shopping and travel expenses while enjoying practical savings and perks throughout the year.

Joining Fee: ?500 Renewal Fee: ?500 (waived on spending ?3.5 lakh annually) Best Suited For: Flipkart shoppers and travelers Welcome Benefits: ?1,100 joining and activation benefits

10. Kotak Mahindra Bank Card

Benefits of the Kotak Mahindra Bank Credit Card include reward points on a range of transactions and interest-free cash withdrawals for up to 48 days. The card is available without an annual fee. It provides a fuel surcharge waiver and protection against fraudulent usage. Designed for users who seek a no-cost credit card with rewards and practical benefits, it is suitable for both online and offline spending. This card offers a combination of convenience and rewards, making it a great choice for those looking to avoid annual fees while earning points on their purchases.

Joining Fee: ?0 Renewal Fee: ?0 Best Suited For: Users who prefer no annual fees and rewards Welcome Benefits: 500 bonus reward points

Features of Secured Credit Cards?

1. 100% Approval: Secured credit cards are issued against fixed deposits (FDs), ensuring approval even if you have a poor credit score. This makes them accessible to individuals who might otherwise struggle to get a traditional credit card.
2. Less/No Documentation: These cards require minimal paperwork or documentation since details are automatically fetched from the existing FD. This streamlines the application process and reduces hassle.
3. Instant Credit Card: Many providers offer a virtual credit card as soon as the FD is booked. This allows cardholders to start using their credit card almost immediately.
4. Up to 100% Credit Limit: Most banks provide a credit limit ranging from 80% to 100% of the FD amount. Cardholders can also increase their credit limit by making additional deposits into the FD.
5. Helps in Building Credit History: Using a secured credit card responsibly can help improve or build your credit history. A good credit score achieved through responsible use can facilitate easier approval for credit applications in the future.
6. Interest on FD: Cardholders continue to earn interest on their fixed deposits while using the secured credit card for expenses. This dual benefit allows for growth in savings even as you utilize credit.
7. Quick and Easy Process: The application process for secured credit cards is straightforward and does not require additional credit history inquiries. This simplicity makes it an attractive option for individuals looking to build or rebuild their credit.
8. Customized Fixed Deposit Amount: The fixed deposit amount required is relatively affordable, typically ranging from Rs. 10,000 to Rs. 20,000. For example, the Paisabazaar Step UP credit card offers the lowest FD requirement of Rs. 2,000.

Considerations for Obtaining a Secured Credit Card

When deciding to apply for a secured credit card, there are several key factors to consider:

• Required Collateral: A cash deposit is needed as collateral for secured credit cards. This deposit sets the credit limit on the card and serves as security for the lender.
• Credit Score: Those with little or no credit history will find these cards particularly helpful. They give you the chance, through appropriate use, to raise or lower your credit score.
• Fixed Deposit Tenure: The tenure of the fixed deposit tied to the secured credit card can vary between banks. For example, ICICI Bank offers a minimum tenure of 6 months. Ensure you are comfortable with the deposit term required by your bank.
• Interest Rates and Fees: Compare interest rates and fees associated with different secured credit cards. Some cards may have higher fees or interest rates compared to regular credit cards.
• Card Features and Benefits: Look into the features and benefits each secured credit card offers. Some may include reward points, cash back, or additional perks, which can enhance the value of the card.
• Usage and Reporting: Check how the card issuer reports to credit bureaus. Regular and timely payments on a secured credit card can positively impact your credit score.
• Flexibility and Terms: Understand the terms and conditions associated with the secured credit card. This includes the flexibility of withdrawing or adjusting the deposit amount if needed.

Considering these factors will help you make an informed decision and select a secured credit card that best fits your financial needs and goals.

How to Get Rewards Points on Secured Credit Cards

Secured credit cards offer a valuable opportunity to earn rewards points, even though they require a cash deposit as collateral. To maximize rewards points on a secured credit card, follow these strategies:

1. Choose the Right Card: Select a secured credit card that offers rewards points as part of its benefits. Different cards have varying reward structures, so compare options to find one that aligns with your spending habits.
2. Understand the Rewards Program: Familiarize yourself with how the rewards program works. Some cards offer points for every purchase, while others may provide higher points for specific categories like dining, groceries, or travel.
3. Use the Card Regularly: Make regular purchases with your secured credit card to accumulate rewards points. The more you use the card, the more points you will earn.
4. Take Advantage of Bonus Categories: Many secured credit cards have rotating bonus categories or promotional periods where you can earn extra points.?
5. Pay Your Balance in Full: To avoid interest charges that can offset your rewards, pay off your balance in full each month. This ensures you earn points without incurring additional costs.

By strategically using your secured credit card and understanding its rewards program, you can build up valuable rewards points that enhance the value of your credit card experience.

Conclusion?

With the opportunity to earn rewards while practicing responsible money management, secured credit cards offer a viable choice for people with bad or no credit history. Cardholders can earn points toward important benefits and savings by choosing a card with a rewards program they like and using it frequently. To get the most out of your secured credit card, it's important to comprehend its unique rewards program and take advantage of any available bonuses.

You may prevent interest charges and make sure the benefits you get are really useful by paying off the balance in full each month. When used properly, secured credit cards can be an effective instrument for raising credit ratings and reaping rewards.

FAQs

Q1. How do you define a secured credit card?

Ans: One kind of credit card that needs collateral in the form of cash is called a secured credit card. This payment typically establishes the credit limit and aids in the establishment or repair of the user's credit history.

Q2. If my credit card is secured, how may I get reward points?

Ans: Choose a credit card with a rewards program, use it frequently for purchases, and take advantage of any bonus categories or promotions to accrue reward points on a secured credit card. To optimize your points, pay down your amount in full each month and comprehend the rewards program.

Q3. Does any secured credit card allow me to accrue rewards?

Ans: Rewards aren't available on all secured credit cards. If you're interested in collecting points, it's crucial to select a secured card that has a rewards program particularly.

Q4. Are secured credit cards' reward points worthwhile?

Ans: The rewards structure of secured credit cards and your spending patterns determine the value of the reward points. The rewards can offer substantial advantages and savings if you select the appropriate card and use it wisely.