Credit cards linked to fixed deposits are good for customers and even better for banks

........After the credit crisis in 2008, banks hit the break on credit card issuances that hit a high of 27 million cardholders in 2007- 2008 - defaults hit a high of 20- 22% and banks like ICICI, one of the most aggressive issuer of cards in India, had to clean up their portfolio. By F12, the same had come down to 17 million as per RBI data. The secured card is usually the first card that one takes in the US, a developed market for credit cards, to start building one's credit history. Indian banks are now pitching the same to clients with low CIBIL scores, over- the- counter, or on email. Various banks, like SBI and DCB, have trained scouts on market visits and ICICI began offering instant FD- linked cards to net banking customers only recently..............

Read - FPJ