How to Choose a Secured Credit Card in 2026

A secured credit card requires a fixed deposit as collateral. The credit limit is typically 75–90% of the FD amount, and the FD earns interest at the regular FD rate. Secured cards are the best option for users with no credit history, low CIBIL scores, or who have been rejected for unsecured cards. The right secured card depends on the FD requirement, the credit limit ratio, and the rewards. This guide walks you through the 5-step process of choosing the right secured card.

Why this matters

Secured cards are the only credit cards available to users with no credit history or low CIBIL scores (below 700). They allow you to build a credit history from scratch, which is essential for getting approved for unsecured cards and loan products in the future. After 12 months of responsible usage, most banks allow you to convert the secured card to an unsecured card.

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How to Choose a Secured Credit Card in 2026

Common mistakes to avoid

The most common mistake is using the secured card for cash advances or EMI, which attract high interest and no rewards. The second is missing the payment due date, which results in late fees, a CIBIL score drop, and potentially the FD being encashed. The third is not using the card at all, which means the credit history is not built.

Pro tips

• Use the secured card for small retail spends every month
• Pay the full statement balance every month to build a strong credit history
• Keep credit utilisation under 30%
• Apply for an unsecured card upgrade after 12 months of responsible usage