What are credit cards? Why should you apply for one?

Credit cards have revolutionized the way we make payments, offering a convenient and cashless solution for various expenses. Even when immediate cash isn't at your disposal, credit cards come to the rescue, allowing you to meet your financial needs with ease. In this article, we will explore the world of secured credit cards, particularly those with Fixed Deposit (FD) backing, and why applying for an Axis Bank credit card might be the right choice for you.

What is a Credit Card with FD Backing?

In simple terms, a secured credit card, also known as an FD-backed credit card, is a unique type of credit card that is issued in exchange for a fixed deposit. The bank holds the FD amount as collateral, making it a practical and reasonable choice. The minimum FD amount typically ranges from Rs. 10,000 to Rs. 20,000 (for Axis Bank, the minimum is Rs. 20,000). Your credit card limit will be determined by the FD amount you hold.

Most banks set the credit card limit between 75% and 85% of the FD amount. In the case of Axis Bank, this limit is 80% of the FD amount. As your FD amount increases, your credit card limit will also grow in direct proportion. Usually, banks require that the FD remains open for at least six months before you can apply for a secured credit card, although this duration extends to one year in the case of Axis Bank. Keep in mind that if you fail to make the required payments, the bank has the right to recover the debt from your FD. Since the credit card and FD are closely linked, deactivating the credit card is necessary if you ever need to access funds from the FD in case of an emergency.

Why Choose an Axis Bank Credit Card?

Axis Bank offers a wide range of credit cards to meet the diverse needs of its consumers. These cards come with various rewards and benefits. To be eligible for an Axis Bank credit card, the FD backing should have a minimum value of Rs. 20,000, ensuring a minimum credit limit of Rs. 16,000. The Flipkart Axis Bank credit card, Indian Oil Axis Bank credit card, and Privilege secured credit card variants from Axis Bank offer the same features as their unsecured counterparts. Additionally, you may be entitled to receive Edge Reward points based on your spending patterns, which can be redeemed for exciting offers and promotions.

How to Pay Your Axis Bank Credit Card Bill with Another Bank Debit Card

Paying your Axis Bank credit card bill is a simple process, with various online and offline methods available. It's crucial to utilize these options to settle any overdue balances promptly and avoid late payment fees. Some channels offer rapid credit, while payments made through other methods usually take two to three days to process. To ensure a smooth payment process, Axis Bank Credit Cardholders should consider their payment due date and select the channel that best suits their needs.

Online options provided by Axis Bank for credit card bill payments include the National Automated Clearing House (NACH), Immediate Payment Service (IMPS), National Electronic Funds Transfer (NEFT), and the Axis mobile app. Offline payment methods, such as cheque/draft, cash payment, ATM payment, and the Axis Bank auto debit option, are also available.

Conclusion

Secured credit cards with FD backing provide a practical financial solution, and Axis Bank offers a range of options to cater to your specific needs. Whether you're looking for rewarding benefits or convenient payment methods, Axis Bank credit cards have you covered.

FAQs

1. What is the minimum FD value required for an Axis Bank credit card?

To apply for an Axis Bank credit card, you must have a minimum FD value of Rs. 20,000, ensuring a minimum credit limit of Rs. 16,000.

2. What are Edge Reward points, and how can I earn them with an Axis Bank credit card?

Edge Reward points are rewards based on your spending patterns with an Axis Bank credit card. You can accumulate these points and redeem them for exciting offers and promotions.

3. How long does it take for payments made through offline methods to process for an Axis Bank credit card?

Payments made through offline methods typically take two to three days to process. It's essential to consider your payment due date and choose the most suitable channel accordingly.

4. What happens if I fail to make the required payments for my Axis Bank credit card with FD backing?

If you fail to make the necessary payments, the bank has the right to recover the debt from your FD. To access funds from the FD in an emergency, you must deactivate the credit card.

5. Are secured credit cards with FD backing a reliable financial option?

Secured credit cards with FD backing provide a practical and reliable financial option for individuals who may not qualify for unsecured credit cards. These cards are backed by a fixed deposit, making them a secure choice for building or rebuilding credit.