Best Credit Cards for Bad Credit in India 2026
Credit cards for bad credit in India offer a pathway to rebuild financial credibility when traditional unsecured cards are out of reach. In 2025, with CIBIL scores below 700 often leading to rejections, secured cards backed by fixed deposits (FDs) dominate this space.
These cards provide credit limits up to 90% of your FD, helping establish positive payment history without extensive checks. Interest rates on revolving balances range from 2.25% to 3.99% per month (27%-48% annually), but paying in full avoids charges. This guide covers eligibility, rates, top options, and steps to apply, ensuring you start rebuilding credit effectively.
What Are Credit Cards for Bad Credit in India?
Credit cards for bad credit, often secured cards, allow individuals with low CIBIL scores (below 650-700) or no credit history to access revolving credit. You deposit a fixed amount (₹5,000-₹5 lakh) as collateral, which sets your credit limit, typically 80-100% of the FD. Earnings on the FD (4-7% p.a.) continue, offsetting some costs.
In 2025, these cards report activity to credit bureaus, boosting scores by 50-100 points in 6-12 months with on-time payments. Unlike unsecured cards, approvals are near-guaranteed, but they carry higher fees and rates if balances revolve. Ideal for emergencies, building history, or small purchases, they come with perks like fuel waivers and EMI conversions. RBI guidelines ensure FD safety, making them low-risk for users.
Eligibility Criteria for Credit Cards for Bad Credit in India
Eligibility is lenient, focusing on FD deposit rather than income or score:
- Age: 18-70 years (21-60 for primary holders).
- Income: No minimum for secured cards; some require ₹15,000-₹25,000 monthly for add-ons.
- Credit Score: Below 700 or none accepted; no hard inquiry needed.
- Documents: PAN, Aadhaar, bank account proof, FD documents. Minimal for existing bank customers.
- Residency: Indian residents; NRIs with NRE FDs.
Women and first-time users often get waived fees. Start with ₹5,000 FD for basic access.
Current Interest Rates and Charges for Credit Cards for Bad Credit in India
Rates apply only on unpaid balances, with 20-50 day interest-free periods. In 2025, monthly rates are 2.25%-3.99% (27%-48% p.a.), higher than premium cards but avoidable by full payment.
Examples:
- Kotak 811 Dream Different: 2.25% p.m. (27% p.a.)
- SBI Unnati: 2.50% p.m. (30% p.a.)
- AU Small Finance Bank: 3.50% p.m. (42% p.a.)
- Axis Insta Easy: 3.75% p.m. (45% p.a.)
- IDFC FIRST EA₹N: 3.99% p.m. (48% p.a.)
Charges: Joining/annual fees ₹0-₹500 (waivable), late fees up to ₹1,300, cash advance 2.5%-3.5%, forex 3.5%. FD interest: 4-7% p.a. Use calculators to estimate—e.g., ₹10,000 balance at 30% p.a. costs ₹250/month if unpaid.
Step-by-Step Guide to Applying for a Credit Card for Bad Credit in India
Applications are digital and quick:
- Choose Card: Compare on BankBazaar or Paisabazaar for FD rates and perks.
- Open FD: Deposit via bank app (₹5,000 minimum).
- Check Pre-Approval: Use lender sites for instant eligibility.
- Submit Application: Online form with KYC; upload PAN/Aadhaar.
- Verification: Video KYC; FD lien marked (1-2 days).
- Approval and Activation: Card issued in 7-15 days; activate via app.
Track via SMS; start small spends to build history.
Best Credit Cards for Bad Credit in India for 2025
Top secured cards based on rates, fees, and rebuilding potential:
- Kotak 811 Dream Different: Lifetime free, 90% FD limit, 1% fuel waiver.
- SBI Unnati: ₹499 joining (waivable), 90% FD, EMI options.
- AU Small Finance Bank Credit Card: No fee, 80% FD, cashback on spends.
- Axis Bank Insta Easy: ₹500 fee, 100% FD, global ATM withdrawals.
- IDFC FIRST EA₹N: Free first 4 years, 100% FD, Flexipay EMIs.
- RBL Bank Platinum FD: ₹500 renewal, 80% FD, reward points.
Choose based on FD interest and waiver conditions.
| Card | Joining Fee | Interest Rate (p.m.) | FD Limit % | Key Perk |
|---|---|---|---|---|
| Kotak 811 | ₹0 | 2.25% | 90% | Fuel waiver, no annual fee |
| SBI Unnati | ₹499 (waivable) | 2.50% | 90% | EMI conversion, add-on cards |
| AU Small | ₹0 | 3.50% | 80% | Cashback, contactless |
| Axis Insta Easy | ₹500 | 3.75% | 100% | Global cash, low min payment |
| IDFC FIRST EA₹N | ₹0 (4 yrs) | 3.99% | 100% | Flexipay, no forex markup |
| RBL Platinum | ₹500 | 2.99% | 80% | Rewards on ₹150 spends |
Pros and Cons of Credit Cards for Bad Credit in India
Pros:
- Easy approval without score checks.
- Builds credit via bureau reporting.
- Earn FD interest (4-7%) alongside use.
- Basic perks like fuel waivers, EMIs.
- Low entry FD (₹5,000).
Cons:
- Higher revolve rates (27-48% p.a.).
- Fees if not waived.
- Limited rewards vs. premium cards.
- FD locked until closure.
- Temptation for overspend.
Tips for Getting the Best Credit Card for Bad Credit in India
- Pay full monthly to avoid interest.
- Keep utilization under 30% for score boost.
- Opt for high FD interest banks (SBI, Kotak).
- Use for small, regular spends.
- Monitor score via CIBIL app quarterly.
- Upgrade to unsecured after 6 months good history.
In 2025, apps like Jupiter simplify tracking.
Conclusion
Credit cards for bad credit in India, like Kotak 811 and SBI Unnati, provide accessible rebuilding tools with secured FDs and rates from 2.25% p.m. Start with a small deposit, pay on time, and watch your score improve for better options ahead. Compare via portals, apply digitally, and focus on habits—financial recovery starts here.
