{"id":68242,"date":"2026-05-30T10:52:05","date_gmt":"2026-05-30T05:22:05","guid":{"rendered":"https:\/\/deccanexpress.co.in\/index.php\/2026\/05\/30\/using-your-savings-to-unlock-a-credit-line-how-it-works\/"},"modified":"2026-05-30T10:52:05","modified_gmt":"2026-05-30T05:22:05","slug":"using-your-savings-to-unlock-a-credit-line-how-it-works","status":"publish","type":"post","link":"https:\/\/deccanexpress.co.in\/index.php\/2026\/05\/30\/using-your-savings-to-unlock-a-credit-line-how-it-works\/","title":{"rendered":"Using Your Savings to Unlock a Credit Line: How It Works"},"content":{"rendered":"<div>\n<p class=\"wp-block-paragraph\"><strong>New Delhi [India], May 30:<\/strong> If you seek access to credit and are concerned about eligibility, your savings can ease the pressure. The money you\u2019ve already set aside in your fixed deposit can help you unlock a credit line. You can use it as a backup for getting a credit card. Meanwhile, your savings continue to earn interest. Learn how this works in this detailed article.<\/p>\n<h2 class=\"wp-block-heading\">Benefits of Using Savings to Access Credit<\/h2>\n<p class=\"wp-block-paragraph\">Tapping into the potential of your savings with an FD-backed credit card leads to the following advantages:<\/p>\n<ul class=\"wp-block-list\">\n<li><strong>Ease of building credit:<\/strong>\u00a0An FD-backed credit card is a great place to start your credit-building journey. The application process is simplified and ideal for beginners.<\/li>\n<li><strong>Dual use of savings:<\/strong>\u00a0Your savings can do more when you avail of credit. Your FD continues earning interest while you get access to funds\/credit.<\/li>\n<li><strong>Disciplined usage:<\/strong>\u00a0You learn about the importance of clearing your credit bills on time and how they affect your credit history, which leads to financial discipline.<\/li>\n<li><strong>Hassle-free access:<\/strong>\u00a0With an FD credit card, you can easily avail of the credit line and start your credit-building journey without a high score or income stability.<\/li>\n<li><strong>Useful during emergencies:<\/strong>\u00a0If you need access to credit quickly and do not want to go through a lengthy eligibility process, an FD-backed card offers a simpler route.<\/li>\n<\/ul>\n<h2 class=\"wp-block-heading\">Key Features of an FD-Backed Credit Card<\/h2>\n<p class=\"wp-block-paragraph\">The specialised\u00a0<a href=\"https:\/\/www.idfcfirst.bank.in\/credit-card\/credit-card-against-fixed-deposits\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">FD credit card<\/a>\u00a0makes credit accessible to anyone with a fixed deposit. A few of its distinct features are outlined as follows:<\/p>\n<ul class=\"wp-block-list\">\n<li><strong>Credit limit linked to a deposit:<\/strong>\u00a0The credit limit you get is a percentage of your total deposit in an FD. It can range anywhere between 80%-100% of the FD value. IDFC FIRST Bank, for instance, offers a min. credit limit equal to 100% of your FD value, so your full deposit works for you.<\/li>\n<li><strong>FD as collateral:<\/strong>\u00a0Card issuers use your FD as collateral, which reduces their lending risk and makes approval more straightforward. This allows you to get started with a credit card even without a strong credit profile.<\/li>\n<li><strong>Simplified eligibility:<\/strong>\u00a0Since the risk for the provider is lower, the application process is simplified. All you need is an FD with the minimum deposit amount, Aadhaar credentials, and PAN for KYC.<\/li>\n<\/ul>\n<h2 class=\"wp-block-heading\">Benefits of a Regular Credit Card<\/h2>\n<p class=\"wp-block-paragraph\">Despite being easier to obtain, the FD credit card comes with the same features as regular credit cards, like rewards, merchant discounts, and complimentary benefits.<\/p>\n<p class=\"wp-block-paragraph\">Continued earnings on the FD: Your FD continues to earn returns at the predetermined rate. Borrowing against it doesn\u2019t affect the savings growth.<\/p>\n<h2 class=\"wp-block-heading\">The Process of Availing of an FD-Backed Credit Line<\/h2>\n<p class=\"wp-block-paragraph\">You can apply for an FD\u00a0<a href=\"https:\/\/www.idfcfirst.bank.in\/credit-card\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">credit card<\/a>\u00a0with three simple steps on the IDFC FIRST Bank portal or mobile app.<\/p>\n<ol class=\"wp-block-list\">\n<li><strong>Register and verify details:<\/strong>\u00a0Enter basic information like your name as per Aadhaar, date of birth, mobile number, and verify with an OTP.<\/li>\n<li><strong>Create or link FD:<\/strong>\u00a0Pick the FD account of your choice and fund it with the minimum required amount to qualify for the credit card against the FD (differs based on variant).<\/li>\n<li><strong>Complete the KYC process:<\/strong>\u00a0The final stage in your application is a video KYC where you display your original PAN card.<\/li>\n<\/ol>\n<h2 class=\"wp-block-heading\">Final Words<\/h2>\n<p class=\"wp-block-paragraph\">An FD credit card is a practical option for anyone who wants access to credit without meeting traditional income or credit score requirements. Whether you are a student, a homemaker, or self-employed, your eligibility is based on what you already have in your fixed deposit, not your income history.<\/p>\n<p class=\"wp-block-paragraph\">Once approved, you can use the credit card for everyday spending, converting large purchases into EMIs, and earning rewards on eligible transactions. Pay your bills on time each month and keep your spending within your repayment capacity. These habits build a strong credit history from the very start.<\/p>\n<p class=\"wp-block-paragraph\"><em>If you object to the content of this press release, please notify us at pr.error.rectification@gmail.com. We will respond and rectify the situation within 24 hours.<\/em><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>New Delhi [India], May 30: If you seek access to credit and are concerned about eligibility, your savings can ease the pressure. The money you\u2019ve already set aside in your fixed deposit can help you unlock a credit line. You can use it as a backup for getting a credit card. Meanwhile, your savings continue [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":68243,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"sb_editor_width":"","footnotes":""},"categories":[16],"tags":[591],"class_list":["post-68242","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-lifestyle","tag-lifestyle"],"relative_dates":{"created":"3 weeks ago","modified":"3 weeks ago"},"_links":{"self":[{"href":"https:\/\/deccanexpress.co.in\/index.php\/wp-json\/wp\/v2\/posts\/68242","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/deccanexpress.co.in\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/deccanexpress.co.in\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/deccanexpress.co.in\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/deccanexpress.co.in\/index.php\/wp-json\/wp\/v2\/comments?post=68242"}],"version-history":[{"count":0,"href":"https:\/\/deccanexpress.co.in\/index.php\/wp-json\/wp\/v2\/posts\/68242\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/deccanexpress.co.in\/index.php\/wp-json\/wp\/v2\/media\/68243"}],"wp:attachment":[{"href":"https:\/\/deccanexpress.co.in\/index.php\/wp-json\/wp\/v2\/media?parent=68242"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/deccanexpress.co.in\/index.php\/wp-json\/wp\/v2\/categories?post=68242"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/deccanexpress.co.in\/index.php\/wp-json\/wp\/v2\/tags?post=68242"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}