Are FD based cards a loss?

[Bhuvanchandra M]

Tell me one thing are FD based credit cards actually profitable? Say for example I am a student and for four years say I am taking an FD backed credit card and now I want the money in the FD eventually which closes my card as well so won't I loose 4 years of my credit history?

 

[amitvicky]

Tell me one thing are FD based credit cards actually profitable? Say for example I am a student and for four years say I am taking an FD backed credit card and now I want the money in the FD eventually which closes my card as well so won't I loose 4 years of my credit history?

Yes it is useful specially if someone do not have any income or do not have any income proof, like students, house wives, low cibil people.

Before closing the FD (and the associated card) you can get other non secured cards

You can also talk to the FD backed CC people to keep the card active after closing the FD, that might work too.

But in my opinion you can definitely have it.

 

[arjungoyal12]

Yes it is useful specially if someone do not have any income or do not have any income proof, like students, house wives, low cibil people.

Before closing the FD (and the associated card) you can get other non secured cards

You can also talk to the FD backed CC people to keep the card active after closing the FD, that might work too.

But in my opinion you can definitely have it.

That’s a really helpful explanation, thanks for clearing that up!
Do you know if banks usually allow converting FD-backed cards to normal unsecured ones later on, or do I have to apply for a new card altogether?

 

[amitvicky]

That’s a really helpful explanation, thanks for clearing that up!
Do you know if banks usually allow converting FD-backed cards to normal unsecured ones later on, or do I have to apply for a new card altogether?

I have not done this myself but have heard in forums that it can be done.
It depends on the bank and the relationship.