Top 10 Secured Credit Cards in India to Build Credit
03 Feb 2026 8 mins Credit Cards
In today's financial landscape, managing credit is crucial for achieving long-term financial goals. Many individuals, especially those new to credit or looking to rebuild their credit history, face challenges in obtaining traditional credit cards. Secured credit cards provide an excellent solution, allowing users to build their credit history while minimizing risk. With the right secured credit card, you can enjoy benefits such as lower interest rates, increased credit limits, and improved financial security. For a comprehensive look at the best credit cards available, we delve into the top secured credit cards in India, offering insights that matter.
Understanding Secured Credit Cards
A secured credit card is a type of credit card backed by a cash deposit made by the cardholder. This deposit acts as collateral, typically equivalent to the credit limit. For example, if you deposit ₹20,000, your credit limit will also be ₹20,000. This arrangement not only reduces the risk for the issuer but also provides cardholders with a pathway to build or rebuild their credit scores. According to a report by Experian, individuals with secured cards can see a credit score improvement of up to 60 points within six months of responsible usage.
Why Choose a Secured Credit Card?
Credit Building: Secured credit cards are particularly beneficial for individuals with no credit history or those looking to improve their credit scores. A strong credit score can lead to better loan terms and lower interest rates in the future.
Lower Risk: Since these cards require a deposit, they pose less risk to lenders, making approval easier. This is especially advantageous for those who have been denied unsecured credit cards.
Manageable Spending: The credit limit is directly tied to your deposit, helping you control spending and avoid debt. This controlled environment encourages responsible financial behavior.
Transition to Unsecured Cards: Responsible use can lead to offers for unsecured credit cards in the future. Many banks periodically review account holders’ creditworthiness and may upgrade them to unsecured cards.
Top 10 Secured Credit Cards in India
1. HDFC Secured Credit Card
The HDFC Secured Credit Card is widely regarded as one of the best options in India. It offers a credit limit that is 80% of the fixed deposit amount. Key features include:
No annual fee for the first year.
Access to HDFC's mobile banking app for easy management.
Reward points on every transaction, which can be redeemed for various products and services.
With the HDFC card, users can also benefit from discounts on movie tickets and dining, which can add significant value over time.
2. SBI Secured Credit Card
The SBI Secured Credit Card is perfect for individuals looking to build their credit score with a trusted bank. It offers various benefits, including:
Credit limit of up to 90% of the fixed deposit.
Flexibility to convert purchases into EMI, making large purchases more manageable.
Reward points redeemable for various offers, including travel and shopping discounts.
SBI has a broad branch network, making it easier for customers to manage their accounts and deposits conveniently.
3. ICICI Secured Credit Card
The ICICI Secured Credit Card comes with a host of features designed to help users manage their finances effectively. Some highlights include:
Credit limit based on your fixed deposit.
Cashback offers on select categories, such as groceries and fuel.
Access to exclusive dining and shopping benefits through partnerships with various merchants.
This card is particularly beneficial for those who frequently spend in popular categories, maximizing the rewards earned.
4. Bank of Baroda Secured Credit Card
Bank of Baroda offers a secured credit card that is ideal for individuals looking for straightforward features and benefits:
Credit limit up to 85% of the deposit amount.
Annual fee waiver on spending a specified amount, encouraging users to engage in responsible spending.
Online account management through a user-friendly mobile app.
Bank of Baroda also offers personalized customer support, which can be a significant advantage for customers needing assistance.
5. IndusInd Bank Secured Credit Card
IndusInd Bank's Secured Credit Card is known for its competitive features:
Credit limit linked to your fixed deposit.
Reward points on every spend, which can be accumulated and redeemed for exciting gifts.
Easy access to online banking facilities, ensuring smooth management of your finances.
This card is particularly recommended for users who appreciate a wide range of rewards and benefits.
6. Axis Bank Secured Credit Card
The Axis Bank Secured Credit Card is a reliable option for those looking to build credit:
Credit limit of up to 90% of the deposit.
Multiple payment options available, including auto-debit and online payments.
Exclusive discounts on various merchants, enhancing the overall value of the card.
Axis Bank also offers a robust rewards program, making it appealing for frequent shoppers.
7. Kotak Mahindra Bank Secured Credit Card
This card from Kotak Mahindra Bank is tailored for individuals looking to manage their finances wisely:
Reasonable credit limit based on the deposit.
Access to rewards and cashback offers, which can significantly enhance your purchasing power.
Flexible repayment options, including the ability to convert large purchases into EMIs.
The Kotak card is particularly beneficial for users who prefer flexibility in their repayment schedules.
8. Punjab National Bank Secured Credit Card
PNB's secured offering is a straightforward card designed for ease of use:
Credit limit aligned with your fixed deposit.
Fee waivers based on annual spending, encouraging users to spend responsibly.
Online transaction alerts and notifications, enhancing security and awareness of account activity.
PNB also has a strong presence across India, making it accessible for many customers.
9. Yes Bank Secured Credit Card
Yes Bank provides a secured credit card with a focus on flexibility and rewards:
Credit limit based on fixed deposit.
Cashback on select categories, such as dining and travel.
Access to exclusive offers and promotions, including discounts at various retail outlets.
This card is ideal for users who frequently engage in specific spending categories where they can maximize their cashback rewards.
10. IDFC First Bank Secured Credit Card
The IDFC First Bank Secured Credit Card is gaining popularity for its user-friendly features:
Credit limit of up to 90% of the deposit amount.
Free access to digital banking services, making it easy to manage finances on the go.
Rewards on every transaction, which can be redeemed for various benefits.
IDFC First Bank's emphasis on customer service and innovative digital solutions makes it a compelling choice for tech-savvy users.
How to Apply for a Secured Credit Card
Applying for a secured credit card is a straightforward process. Here’s how you can do it:
Choose the Right Card: Evaluate different secured credit cards based on your needs and benefits. Consider factors such as annual fees, interest rates, and rewards programs.
Gather Documentation: Prepare necessary documents such as identity proof, address proof, and income proof. This may include Aadhaar card, passport, utility bills, or bank statements.
Open a Fixed Deposit: Approach the bank to open a fixed deposit account, which will serve as collateral. Make sure to understand the terms and conditions associated with the deposit.
Submit Application: Fill out the application form for the secured credit card and submit it along with the required documents. Ensure all information is accurate to avoid delays.
Wait for Approval: The bank will review your application and notify you of the approval status. This process can take anywhere from a few hours to several days, depending on the bank.
Frequently Asked Questions (FAQs)
What is a secured credit card?
A secured credit card is a credit card that requires a cash deposit as collateral, which serves as the credit limit. This helps individuals build or rebuild their credit history while minimizing risk to the lender.
How does a secured credit card work?
With a secured credit card, you deposit a certain amount with the bank, which acts as your credit limit. Your spending is tracked, and timely payments can improve your credit score significantly over time. This is a vital step for individuals looking to improve their creditworthiness.
What are the benefits of using a secured credit card?
Benefits include easier approval, credit score improvement, controlled spending, and potential transition to unsecured credit cards. Additionally, many secured credit cards offer rewards similar to those of unsecured cards, including cashback and points redeemable for merchandise.
Can I get rewards with a secured credit card?
Many secured credit cards offer rewards such as cashback, discounts, and loyalty points on purchases, similar to unsecured cards. This feature can make secured cards more appealing to users who want to maximize their spending.
How is the credit limit determined?
The credit limit is typically a percentage of the amount you deposit as collateral, commonly ranging from 80% to 90% of the fixed deposit. Some banks may also consider your income and credit history when determining the limit.
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Author - Abhishek Sonawane
Abhishek Sonawane, an MBA graduate from the prestigious Indian Institute of Management Visakhapatnam (IIMV), brings over ten years of experience in the finance domain. His extensive background includes various roles in financial management and strategy, providing him with a comprehensive understanding of the financial landscape. Abhishek’s expertise and dedication to financial education make him an authoritative voice in personal finance, helping readers make informed financial decisions.