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Applying for a One Card Credit Card Against a 10k FD: What will be my credit card limit?

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Applying for a One Card Credit Card Against a 10k FD: What will be my credit card limit?

In the vast world of credit cards, there are numerous options available to consumers. For those looking to build or rebuild their credit score while enjoying the convenience of a credit card, a secured credit card is an excellent choice. One such option is the One Card Credit Card, which allows individuals to secure their credit limit against a Fixed Deposit (FD) of Rs. 10,000. If you’re considering this option, you might be wondering what your credit card limit will be. Let’s dive into the details to understand how the credit card limit is determined and explore the benefits of opting for a secured credit card.

Secured Credit Cards: A Brief Overview

Secured credit cards are designed to help individuals with limited credit history or poor credit scores establish or improve their creditworthiness. The concept is straightforward – you deposit a certain amount, usually equivalent to the desired credit limit, into an FD with the card issuer. The FD acts as collateral, providing security to the credit card issuer in case of non-payment. The One Card Credit Card operates on this principle, offering you the opportunity to build your credit while keeping your finances in check.

Understanding Your Credit Card Limit

When you apply for the One Card Credit Card against a 10k FD, your credit card limit will typically be a percentage of the FD amount. Credit card issuers usually offer a limit ranging from 70% to 90% of the FD value. Therefore, with a Rs. 10,000 FD, you can expect a credit limit ranging from Rs. 7,000 to Rs. 9,000, depending on the issuer’s policies.

Factors Affecting Credit Limit

While the FD amount plays a significant role in determining your credit limit, several other factors come into play. These factors help the card issuer assess your creditworthiness and repayment capacity. Understanding these factors can help you make informed decisions and increase your chances of obtaining a higher credit limit:

  1. Credit Score: Although secured credit cards are suitable for individuals with limited or poor credit histories, having a higher credit score can positively impact your credit limit. A better credit score demonstrates responsible credit behavior, which may lead to a higher credit limit. If you’ve been working on improving your credit score, a secured credit card can be a great way to continue building positive credit history.
  2. Income: Your income level is essential for the card issuer to assess your ability to repay the credit card dues. A higher income may result in a more substantial credit limit, even with a 10k FD. It’s crucial to provide accurate income details during the application process to ensure a fair evaluation.
  3. Debt-to-Income Ratio: Lenders also consider your debt-to-income ratio, which is the percentage of your income that goes towards debt payments. A lower ratio indicates that you have more disposable income, increasing your chances of a higher credit limit. If possible, try to pay off existing debts or reduce outstanding balances before applying for a secured credit card to improve your debt-to-income ratio.
  4. Existing Obligations: Your existing financial commitments, such as loans or other credit cards, can influence your credit limit. A heavy debt burden may lead to a conservative credit limit despite the FD collateral. Before applying for a secured credit card, consider paying off high-interest debts to reduce your financial obligations and potentially increase your credit limit.
  5. Employment Stability: A stable job history and steady employment can boost your creditworthiness and potentially lead to a higher credit card limit. Lenders view stable employment as a positive indicator of your ability to meet financial commitments.

The Benefits of Secured Credit Cards

Secured credit cards offer several benefits that make them an attractive option for individuals looking to build or rebuild their credit:

  1. Credit Building: One of the primary advantages of a secured credit card is the opportunity to build or rebuild your credit history. Regular and timely payments on your secured card can demonstrate responsible credit behavior and positively impact your credit score.
  2. Lower Risk for Lenders: Since the credit limit is secured by the FD, lenders face lower risk when issuing secured credit cards. This increased security allows them to offer credit to individuals with limited or poor credit histories.
  3. Flexible Credit Limits: Secured credit cards often come with flexible credit limits, making them accessible to a wide range of applicants. Your credit limit is determined by the FD amount, making it a viable option for those seeking to control their spending.
  4. Upgrade Opportunities: Some secured credit card issuers offer upgrade opportunities to unsecured credit cards after a certain period of responsible credit card usage. This allows you to transition to a regular credit card with a higher credit limit and additional benefits.


Applying for a One Card Credit Card against a 10k FD can be a smart move to build your credit and enjoy the benefits of a credit card. Your credit card limit will be determined primarily by the value of the FD, usually ranging from 70% to 90% of the FD amount. However, other factors like your credit score, income, debt-to-income ratio, existing obligations, and employment stability also play a role in the final credit limit decision.

Before applying, it’s essential to compare different secured credit card offerings and understand the terms and conditions. Remember that responsible credit card usage, such as timely payments and keeping credit utilization low, will pave the way for a stronger credit history and potentially lead to credit limit increases in the future.

With a One Card Credit Card, you have the opportunity to embark on a journey of credit building while managing your finances wisely. Take advantage of this secured credit card option to build a solid credit foundation and set yourself up for future financial success.

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