I came to know that there are banks which provide credit cards against fixed deposits in the bank. But wondering what are its demerits
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- Kevin Carter
Yes. It is true. There are plenty banks available in India which provide credit card against fixed deposits.
Following are the demerits of credit cards obtained against fixed deposits.
- credit card limit is set to 60% to 75% of the fixed deposit
- If you fail to clear the debts or purchases made using credit card then fixed deposit is freezed by Bank
- There are heavy interest charges in the case of credits are not cleared
- Card fails to function once it crosses the limit.