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How do fixed deposit-backed credit cards work?

short by Neeraja Nath / on Saturday, 31 October, 2026
Fixed deposit-backed secured credit cards are issued against a fixed deposit (FD), which acts as collateral for bank. FD continues to earn interest, while users pay their monthly bills separately like regular credit cards without using deposit. If users default, bank can recover dues by liquidating the FD. These cards are meant for consumers who can't access regular credit cards.
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