Is there a con to FD backed credit cards?

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Same as the title,


I have a hdfc moneyback+ card with 50000 unsecured, that i was able to somehow get last year without any income. I have spent about 4.68L since last april on it, including this month's statement.

I don't really care about the utilisation and utilise it to the max almost always, so my cibil fluctuates, it's 763 right now. Now, i particularly don't care about the cibil because I won't ever need it.

I'm planning to get a IDFC wow card (Decided already) with a 2l limit/FD. Apart from the capital lock, which isn't really a big amount to me. I will also close my hdfc card because the limit is so miniscule.

Are there any other cons of fd backed cards that are worth knowing or is there none?

I also don't care about credit card rewards or lounges. I used a lounge once plaza premium t3 intl. new delhi, it wasn't worth it and was so noisy. I avoid lounges.

 

[Aeon-Nocturne]

I have been using an FD card for years; the only con is that FD is linked to credit card, so I can't release FD until I close the card. But i guess you can always link a lower amount fd and release the first fd.

 

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I have been using an FD card for years; the only con is that FD is linked to credit card, so I can't release FD until I close the card. But i guess you can always link a lower amount fd and release the first fd.

Thanks for confirming. I don't care about the FD amount so when I release it that'd mean I'll close the card for good.

A lot of my payments are in CNY/HKD and a few are in USD as well so the zero forex looked tempting to me, I'm also opening an account in IDFC so just makes everything simpler (Same card/Same bank). The cards of the big banks are the most uninteresting to me particularly because I don't care about the rewards/benefits/points.

 

[sourabhjha]

In short for your answer
There is no disadvantage of fd based cards
People just use them to build cibil because they don't give much offer.
For IDFC WOW you can get it ofc as you have already decided, I will just tell that it will be difficult to get more unsecured card from them after this one
And as you said you spent much in foreign currency so just go for zero forex card or a card with bigger cb than its charges.

 

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In short for your answer
There is no disadvantage of fd based cards
People just use them to build cibil because they don't give much offer.
For IDFC WOW you can get it ofc as you have already decided, I will just tell that it will be difficult to get more unsecured card from them after this one
And as you said you spent much in foreign currency so just go for zero forex card or a card with bigger cb than its charges.

Got it.

Yeah, that's how I eventually got to know about them. I don't care about Cibil score at all, my main benefit is that I'll get a limit of my choice.

I just had the HDFC otherwise, never had heard of something like this before when I was out of the country. I have only ever had one credit card before my current and that was a student credit card with a limit of €10000 until early last year. (I was under the impression credit cards were just unsecured ones)

That's alright, I'm not looking to ever get a unsecured or secured Indian credit card after this one and this is also temporary (3-4 years), so doesn't bother me at all. I'm never going to apply for a card or a loan here.

I paid in forex today for something. it was Rs 8260 with my mb+ and it was almost a 270 forex markup (3.5% on mb+ and some gst). I don't really care about the forex markup either, it's just a minor amount although it won't be deducted with the new card. The only benefit for me is the limit of my preference since I use a credit card only as a pay later tool, rewards don't concern me. Cards don't offer me anything enticing in terms of rewards.

I don't care about cb either otherwise would have asked for a card that offered it. It's just that I really don't like to be bothered with hassle work that I've grown to just not caring about things, just tiring.

One benefit is lounges for some, I avoid lounges because they are noisy and not peaceful. The lounges that I like offer individual separate spaces for a charge and aren't offered by these cards but by either paying for a first class ticket or similar but i've used them like twice, still not a fan of lounges even then.

I asked this question here because I assumed there would be some kind of a catch. for example can't spend more than a certain amount per transaction or some other limitations for making a payment. Found out that there is none so I'm all good.

Getting the card next week, opening an account with the bank first on either tomorrow or monday.

Thanks for the reply though, I just made this account to ask this question, I'm not intending to do anything more. So, just writing a thorough reply.