Best Credit Card for me as a student.

[sayandeb]

Hello @TaxWiser

I have just turned 18 years and planing to make a FD (in HDFC) with such a good amount (I opted for FD because I can't take risk here, so please no judgment on this ). And thereafter against that FD I'm sure I will get a Credit Card against it for a limit of ₹6 lakhs+.

But I have some doubts to solve, please help me.

1. According to many youtube videos and online article I got that I can get a CC against my FD for the 90% limit of my current FD, but I have a question that limit is monthly, quatarly or yearly ?
2. Also from many source above mentioned I also got many suggestions for a secured CC but as a student I want a Lifetime free CC for me, so if there is any suggestion for me please say to me (considered that my FD will be in HDFC).
3. Can I pay my semester fees using this CC ?
4. If the FD is opted for monthly interest payout am I still eligible for the CC ?

And any further suggestions from you and all of the community members @zacobite @anuragmukherjee28 @ShavirB @nikhilchauhan @Sam Maxi @Skylar please say to me.

 

[krishna1718]

hdfc i dont think they give fd based creditcard lifetime free if they it good. some banks only allow auto renewal fd where interest and principal will be renewed everytime and once creditcard close then only you will receive whole interest with 6 lakhs fd you may earn 42-45K interest every year so you have to submit 16G form to not deduct TDS. go with 1 to 2k fd more than enough

 

[TaxWiser]

Hello @TaxWiser

I have just turned 18 years and planing to make a FD (in HDFC) with such a good amount (I opted for FD because I can't take risk here, so please no judgment on this ). And thereafter against that FD I'm sure I will get a Credit Card against it for a limit of 6 lakhs+.

Congrats on turning 18 and making a smart decision to invest in an FD! No judgment here, it’s a safe and solid choice. No Investment is a Good or Bad Investment, It's all about Goals, Tenure and Risk Appetite.

1. According to many youtube videos and online article I got that I can get a CC against my FD for the 90% limit of my current FD, but I have a question that limit is monthly, quatarly or yearly ?

The credit limit you get against your FD is typically 80-90% of the FD amount. This limit is not monthly, quarterly, or yearly; it’s the total credit limit available to you at any given time. For example, if you have an FD of ₹6 lakhs, your credit limit could be around ₹5.4 lakhs to ₹5.7 lakhs.​

2. Also from many source above mentioned I also got many suggestions for a secured CC but as a student I want a Lifetime free CC for me, so if there is any suggestion for me please say to me (considered that my FD will be in HDFC).

HDFC Tata Neu Secured CC & Business Series CCs (Good credit cards like Millennia and Regalia have stopped being issued against fixed deposits in the past few months. So, don’t consider them, or else cunning bank officials might convince you to create an FD without giving you the credit card, claiming you’re not eligible.)​

3. Can I pay my semester fees using this CC ?

Yes, you can use your credit card to pay your semester fees via your college’s swipe machine. However, be aware that if you pay educational fees using a credit card through any other methods(third party apps, websites etc.), additional charges may be imposed. It’s always a good idea to check with your college for any specific fees/charges associated with CC payments & CC's T&C​

4. If the FD is opted for monthly interest payout am I still eligible for the CC ?

No idea ,​

but my personal suggestion would be​

If HDFC CC will add some value in your Current Finances​

Make an FD of ₹1-2 lakhs and get a credit card against it and invest the remaining amount in your desired monthly payout FD scheme. Use it wisely thus increasing your probability of getting a Good Pre-Approved HDFC unsecured lifetime free credit card with the same or higher credit limit than the secured card. Once you get it, close the secured credit card and invest it somewhere else as per your Risk Appetite & Financial Wisdom. And​

If HDFC CC add Nothing in your Current Finances​

Invest Full amount in desired Monthly Payout FD scheme and Go with a secured credit card with smaller amounts(Super Card, Onecard, IDFC etc.) or a Pay Later account to build a healthy credit score and good credit history for at least 3 years (until you are 21 years old). After turning 21, you can apply for your desired unsecured lifetime free credit card.​

BTW check out this thread regarding Current Ongoing HDFC LTF CC offer:
https://bekifaayati.co/threads/hdfc-lifetime-free-ltf-credit-cards.6822/

 

[sayandeb]

This limit is not monthly, quarterly, or yearly; it’s the total credit limit available to you at any given time. For example, if you have an FD of ₹6 lakhs, your credit limit could be around ₹5.4 lakhs to ₹5.7 lakhs.

That means for the ₹6 lakh limit credit card in the total tenure till I hold my CC it will give around ₹5.4 lakhs to ₹5.7 lakhs. And should spend the 30% of this limit that means ₹1.6 lakhs to ₹1.7 lakhs will be the best option for having a good cibil ?

HDFC Tata Neu Secured CC & Business Series CCs

Thanks for the suggestion I will remember that, here I asking about suggestions for such things which can help me get the perfect CC against my FD.

Yes, you can use your credit card to pay your semester fees via your college’s swipe machine

Okay. That means it's the best option to make the fees payment directly to the college bank details or online portal but considering the T&C.

Understand that what you want to say, I will try to do something like that. That may be a great option to get a secured CC as my semester fees will be approx ₹1.7 lakhs and a ₹7 lakhs FD backed CC will give a limit of ₹6.3 lakhs and 30% of that can do the job but for the monthly payout I will get lower amount. Okay thanks I got a good idea to what to do, further I will make it best as per my financial goals and risks.

 

[sayandeb]

hdfc i dont think they give fd based creditcard lifetime free if they it good

Might they give as -

HDFC Tata Neu Secured CC & Business Series CCs

Here said.

some banks only allow auto renewal fd where interest and principal will be renewed everytime and once creditcard close then only you will receive whole interest with 6 lakhs fd you may earn 42-45K interest every year so you have to submit 16G form to not deduct TDS. go with 1 to 2k fd more than enough

In case of HDFC I got that opportunity to get a monthly payout as the principal amount is better than average. So I will get a monthly payout from that.

 

[sayandeb]

@TaxWiser sir I didn't got any view from you here, actually I'm thinking about the lower risk. Because the FDs are going to be in very large amount for me and I want to take the less risk for the next 10 years. Which bank should I consider it is the more important (60%) for me rather than which is giving more interest (40%)... So if possible please share your views.

 

[TaxWiser]

In case of HDFC I got that opportunity to get a monthly payout as the principal amount is better than average. So I will get a monthly payout from that.

Does this mean you’re being offered an HDFC credit card based on a Monthly Payout FD scheme?

Make sure to double-check before applying to ensure you’re investing in an FD and not some kind of ULIP or insurance scheme, as ULIPs are just Worst Financial Product out there that bank officials are trying to sale by misleading it as Investment Plans.

Update me on this. If it’s truly a Monthly Payout FD scheme and you’re getting a credit card on it, I’m eager to learn more about your experience & whole process regarding the same.

 

[sayandeb]

Does this mean you’re being offered an HDFC credit card based on a Monthly Payout FD scheme?

Make sure to double-check before applying to ensure you’re investing in an FD and not some kind of ULIP or insurance scheme, as ULIPs are just Worst Financial Product out there that bank officials are trying to sale by misleading it as Investment Plans.

Update me on this. If it’s truly a Monthly Payout FD scheme and you’re getting a credit card on it, I’m eager to learn more about your experience & whole process regarding the same.

No no sir... I not said about that. I got a scheme where HDFC giving a monthly payout in FD. But I will surely update here if I got any scheme like that after visiting the branch. Because that's might be really a good option.

And yeah! I will never do anything more than FD with my father's savings. Basically the MFs SIP are also with the interest from the below mentioned FD.

And here is my current plan to do my future finance with my higher studies on the way -

1. Some amount in FD which giving me a monthly payout and that will be insvested in MFs through SIP.
2. There I've fixed some amount for my education, specifically about ₹22 lakhs. From there I'm going to make a ₹7 lakhs FD in One Card and might I will get a secured CC with a limit ₹5.6 lakhs and 30% of that can easily cover my fees. And for the payment of the CC bill from the another ₹19 lakhs ₹3 lakhs will be saved in SB for easy payment of bill and other ₹12 lakhs will be in a 1 year FD for next 5 years with every year decreasing ₹3 lakhs from the FD as I need to pay that for bill.

And after all of this might be I would have a good cibil after 5 years and also the 7 lakhs FD in one card is growing with 7% interest .

 

[TaxWiser]

From there I'm going to make a ₹7 lakhs FD in One Card and might I will get a secured CC with a limit ₹5.6 lakhs and 30g of that can easily cover my fees.

As per OneCard blog from 2023:



BTW, OneCard generally offers a credit limit equal to 100% of the FD amount for their OneCard Credit Card. Keep that in mind before making your final decision.

also the 7 lakhs FD in one card is growing with 7% interest .

Also HDFC Tata Neu Secured CC & IDFC Secured CCs are way better options than OneCard CC

Best of Luck

 

[sayandeb]

BTW, OneCard generally offers a credit limit equal to 100% of the FD amount for their OneCard Credit Card. Keep that in mind before making your final decision.

I see. Then it will better to make a lower amount of FD for the ONE Card CC, I will check that out.

Also HDFC Tata Neu Secured CC & IDFC Secured CCs are way better options than OneCard CC

Okay, I will find out for that. If I get a FD backed CC against the monthly payout FD that will be best or I will do the same with HDFC like the ONE Card planing.

 

[sayandeb]

HDFC Tata Neu Secured CC & Business Series CCs

Sir this cards eligible for 21 years+ so I can't consider that. If any other suggestions then please let me know.

 

[Bhuvanchandra M]

Hello @TaxWiser

I have just turned 18 years and planing to make a FD (in HDFC) with such a good amount (I opted for FD because I can't take risk here, so please no judgment on this ). And thereafter against that FD I'm sure I will get a Credit Card against it for a limit of ₹6 lakhs+.

But I have some doubts to solve, please help me.

1. According to many youtube videos and online article I got that I can get a CC against my FD for the 90% limit of my current FD, but I have a question that limit is monthly, quatarly or yearly ?
2. Also from many source above mentioned I also got many suggestions for a secured CC but as a student I want a Lifetime free CC for me, so if there is any suggestion for me please say to me (considered that my FD will be in HDFC).
3. Can I pay my semester fees using this CC ?
4. If the FD is opted for monthly interest payout am I still eligible for the CC ?

And any further suggestions from you and all of the community members @zacobite @anuragmukherjee28 @ShavirB @nikhilchauhan @Sam Maxi @Skylar please say to me.

1. Limit will be monthly
2. I mean why not go for Onecard a good option for student and they give it against FD as well
3. Well you can but ensure to repay it before the bill generation date to avoid problems

 

[TaxWiser]

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Sir this cards eligible for 21 years+ so I can't consider that. If any other suggestions then please let me know.

Create FDs in your mother’s name using your Mobile No. and Email Id for convenience so that you can get best CCs out there and also when your mother turns 60 she can also claim extra 0.5% interest rate benefits as senior citizen.

PS: Earlier, I was talking about Lower Variant of Business Series CCs like Biz First, Business MoneyBack etc. not the top Variant like Biz Black.