Looking for your first credit card, but your card application keeps getting rejected due to inadequate credit history or some other reason? There is a simple and quick way to get around this problem if you have some money in your bank account. I am talking about a bank FD backed credit card. And in this post, let us look at one such credit card from ICICI Bank: Instant Platinum Credit Card.
ICICI Bank Instant Platinum Credit Card: Salient Features and Benefits
- Instant Issuance: The card issuance is instant and rightly so. Since the entire credit limit is secured by a bank fixed deposit. There is a limited need for credit assessment and the card is issued instantly. As I understand, the card details will be instantly available in the bank mobile app.
- Platinum: This sounds misleading. “Platinum” gives the impression of a premium product, at least to me. However, this is a basic card.
- No Fees: No joining fee and no annual fee.
- FD requirements: Minimum FD amount must be Rs 50,000. The bank FD must be under the applicant’s name. Third-party FDs are not acceptable.
- The minimum tenure of the FD must be 6 months. The FD must be in auto-renewal mode. You cannot break the FD while the credit facility is still alive.
- Tax-saving fixed deposit is not allowed. Why? These FDs cannot be broken before completion of 5 years to recover costs. Such FDs are not useful to the bank.
- Your credit card limit will be a certain percentage (less than 100%) of the FD amount.
- Reward Points: You earn 2 reward points for every purchase of Rs 100 except for fuel. These reward points can be utilised for purchases at ICICI Bank Rewards website/portal.
- 1 reward point per Rs 100 for utility and insurance payments.
- Discounts: 25% discount of up to Rs 100 on purchase of at least 2 tickets on BookMyShow. You can avail this discount twice a month.
- Waiver of 1% fuel surcharge only at HPCL petrol pump (only if the card is swiped on ICICI Bank card machines).
- Available on Visa and Mastercard networks. Not available on RuPay network.
How Is This ICICI Bank Instant Platinum Credit Card Useful for You?
- You do NOT need a good credit history to get this card. In fact, you are eligible for this credit card without a credit history. Your bank FD provides sufficient credit comfort to the bank.
- If you do not have a good credit score or no credit history, you can use this card to improve your credit score and build credit history. Your credit score will not improve just by using this credit card. You must spend responsibly and pay card bills on time. If you stick with this discipline, your credit score should improve gradually.
- You do not need any income proof. Hence, even students, home makers, or senior citizens without any income can apply.
- Most online websites offer discounts/cashbacks only for credit cards (not for debit cards). Hence, you may be able to save some money too.
- A credit card provides comfort. You do not have to keep a lot of money in your bank account/wallet just for cushion.
- You get the benefit of interest-free credit period on card purchases.
- You would not have to break FD to tide over short-term cashflow mismatch. You continue to earn full interest on your bank fixed deposit while you enjoy the interest-free credit period.
The banks also benefit because they make money through merchant discount rate (MDR) on your card purchases.
Be Careful
Credit cards can also lead to higher spending if you are not responsible with credit.
A credit card allows you to spend money you do not yet have. Therefore, irresponsible behaviour can land you in credit problems. You do not want that.
ICICI Bank Instant Platinum Credit card is a basic credit card but can be your first credit card, especially if you are struggling to get your first credit card. You can use the card to build a robust credit history. With no joining or annual fees, it is also light on your pocket. However, the card offers limited rewards and benefits. You may consider upgrading to a card with better benefits (depending on your usage pattern) once you have built a robust credit history.
Additional Links
ICICI Bank Instant Platinum Credit Card page on ICICI Bank website