DCB Bank Credit Card Against FD

What is the DCB Bank Credit Card Against FD?

A DCB Bank credit card against FD is a secured credit card linked to a fixed deposit held with the bank. It works like a regular credit card, allowing you to make purchases, pay bills, and manage daily expenses with ease. DCB Bank offers two such secured credit options: the DCB PayLess Platinum Credit Card and the DCB PayLess Select Credit Card. 

To be eligible, applicants must be between 18 and 75 years of age. The credit cards enable users to build a credit history while enjoying the flexibility of a regular credit card. Meanwhile, the linked fixed deposit continues to earn returns at the applicable DCB Bank FD interest rate.

DCB Bank Credit Card Against FD Features

The following are the key features of the DCB Bank credit card against FD:

• Helps in Credit Building: Regularly using this credit card and making timely payments on the outstanding balance will help you establish a positive credit history, which in turn contributes to building a good credit score.
• Quarterly Cashback Benefit: You can earn cashback every quarter by spending ₹50,000 with the DCB PayLess Platinum Credit Card. If you use the DCB PayLess Select Credit Card and spend ₹1,00,000 in a quarter, you’ll receive even higher cashback.
• Fuel Surcharge Waiver: Both the DCB PayLess Platinum Credit Card and the DCB PayLess Select Credit Card offer a 1% fuel surcharge waiver, up to ₹100 per statement cycle, on fuel transactions of up to ₹5,000.
• No Joining Fee: Both DCB Bank credit cards against FD come without any joining fee.
• Annual Fee: The DCB PayLess Platinum Credit Card has an annual fee of ₹350, waived on annual spending of ₹50,000. The DCB PayLess Select Credit Card has an annual fee of ₹1,000, waived on annual spending of ₹2,00,000.

Pros and Cons of DCB Bank Credit Card Against FD

This credit card is secured, meaning it is issued against a Fixed Deposit (FD) as collateral. This makes it an accessible option for those who may not be eligible for a traditional, unsecured credit card.

Pros

• No Credit History or Income Documents Required: The card is issued based on your FD, so you don't need a credit history or income documents to apply. This is beneficial for students, homemakers, freelancers, or anyone new to credit.
• FD Continues to Earn Interest: Your fixed deposit remains intact and continues to earn interest at the prevailing DCB Bank FD interest rate while it is used as collateral.
• Helps Build or Improve Credit Score: Regular and timely payments on the card can help you establish a positive credit history and build a good credit score. 
• Flexible Credit Limit: You can increase your credit limit by linking multiple DCB Fixed Deposits to the card. The credit limit is typically up to 90% of the linked FD amount.
• Quick and Easy Application: The process is generally fast and requires minimal documentation.

Cons

• Fixed Deposit is Under Lien: The FD you use as collateral is marked with a lien. This means you cannot withdraw or break the FD until the credit card is closed and all outstanding dues are cleared.

Application Process for DCB Bank Credit Card Against an FD

Here’s a step-by-step guide to help you get a DCB Bank credit card against FD:

1. Launch the DCB Mobile Banking Application: 

   Begin by opening the DCB Mobile Banking app on your smartphone. If the application is not already installed, it can be downloaded from the Google Play Store (for Android users) or the Apple App Store (for iOS users).

2. Navigate to the Credit Card Section: 

   From the homepage of the mobile application, select the ‘Credit Card’ tile to initiate your application for a secured credit card.

3. Select or Create a Fixed Deposit: 

   Choose the existing Fixed Deposit you wish to link to the credit card. If you do not have a sufficient deposit, you may open a new FD instantly through the ‘Fixed Deposit’ section within the app.

4. Choose the Credit Card Variant: 

   Select between the two available credit card options, DCB PayLess Select Credit Card, or DCB PayLess Platinum Credit Card based on your eligibility and financial requirements.

5. Enter Card and Nominee Details: 

   Provide the name to be embossed on the credit card. Additionally, enter the nominee’s details for the account 

6. Confirm the Delivery Address: 

   Review and confirm the delivery address where the credit card should be dispatched.

Closure Process of DCB Bank Credit Card Against FD

To close your DCB Bank credit card against FD, follow these simple steps:

1. Settle Outstanding Dues: 

    Ensure that all pending transactions, interest charges, and any balance transfer or EMI dues are fully paid.

2. Submit Closure Request:

   Visit a DCB Bank branch or contact customer support to formally request closure of the credit card.

3. Receive Closure Confirmation: 

   After verification, the bank will process the closure request and issue a written or digital confirmation.

4. Release of Fixed Deposit Lien: 

   Upon card closure and full dues settlement, the lien on your Fixed Deposit will be released, restoring access to your funds.

5. Retain Record of Closure: 

   Retain the confirmation or acknowledgement for your records. Confirm via the mobile app or net banking that the card has been closed and the FD lien lifted.

Who Should Consider a DCB Bank Credit Card Against FD?

You may consider a DCB Bank credit card against FD if you fall into one of the following categories:

• First-Time Credit Users: Ideal for those new to credit who want to build a credit history in a low-risk, secured manner.
• Young Professionals and Students: Beneficial for individuals at the start of their careers or higher education journey who may not have consistent income or credit records.
• Self-Employed or Informal Income Earners: Offers access to credit for those without salaried documentation but with the ability to maintain a fixed deposit.
• Individuals Rebuilding Credit: Suitable for users looking to improve or repair their credit scores with timely payments and responsible usage.
• Fixed Deposit Investors Seeking Liquidity: Allows access to a credit limit without breaking the FD, enabling better financial flexibility while the deposit continues to earn interest.

Key Takeaways

The DCB Bank credit card against FD is a secured card designed for individuals without income proof or credit history. It comes in two variants, DCB PayLess Platinum Credit Card and DCB PayLess Select Credit Card, offering standard credit card features like online payments, cashback, and lounge access. The linked fixed deposit stays active and earns interest at the applicable FD interest rate. With up to 90% of the FD amount as a credit limit, it’s a simple way to access credit and build your credit profile.