Achieving a high CIBIL score is crucial for financial well-being in India, especially when you want to unlock better loan rates, higher credit limits, and financial independence. The Magnet FD Credit Card is a unique tool to help you build your CIBIL score without the hurdles typically associated with traditional credit cards. Below, we’ll break down how this credit card works and how it can benefit you.
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Why Choose the Magnet FD Credit Card?
The Magnet FD Credit Card offers a range of benefits that make it an ideal choice for those looking to build or improve their CIBIL score. Here are a few key points that make this card stand out:
- No income proof needed: Even if you’re a student or freelancer without a steady income, you can apply for the Magnet FD Credit Card. The card is secured by a fixed deposit (FD), removing the need to show proof of income.
- Lifetime free credit card: You won’t need to worry about annual or renewal fees. The Magnet FD Credit Card is a lifetime free option that offers the financial freedom of credit without the added costs.
- Magnet FD secured by RBI: Your FD is safe and secured by the Reserve Bank of India (RBI). This provides additional security and peace of mind for those skeptical about investing in a credit card.
- Up to 10% rewards on top brand vouchers: Magnet FD Credit Card holders enjoy fantastic rewards, including up to 10% back on vouchers from leading brands. Imagine earning rewards just for spending responsibly.
- Joining benefits worth ₹21,000+: As soon as you sign up, you can unlock valuable benefits worth over ₹21,000, making this card a rewarding choice from the start.
Real-Life Example: Take the case of a young professional who had recently started their career but lacked a credit history. Without steady income, they found it difficult to qualify for regular credit cards. By securing the Magnet FD Credit Card, they not only received a credit limit but also started building their CIBIL score immediately, all without needing to submit income proof.
Information in Table format:
| Heading | Details | Real-Life Example |
|---|---|---|
| Why Choose the Magnet FD Credit Card? | – No income proof needed – Lifetime free credit card – Magnet FD secured by RBI – Up to 10% rewards on top brand vouchers – Joining benefits worth ₹21,000+ | A young professional without steady income used the Magnet FD Credit Card to build their CIBIL score, qualifying without needing income proof. |
| Benefits of Opening a Fixed Deposit (FD) | – Earn up to 7% interest on FD – Get 90% of your FD as credit limit – Top up FD to increase card limit instantly – Use your FD without breaking it – FD starting as low as ₹5,000 | A small business owner opened an FD of ₹20,000, accessing 90% as credit while earning interest. This helped them maintain liquidity while expanding their credit limit. |
| A Good CIBIL Score Can Save You Money | – CIBIL Score 300: Ineligible for loans – CIBIL Score 550: 15% loan interest rate, ₹1,50,000 interest on a ₹10 lakh car – CIBIL Score 750: 10% loan interest rate, saving ₹50,000 on the same loan | A couple improved their CIBIL score from 550 to 750 by using the Magnet FD Credit Card, saving over ₹1 lakh in home loan interest due to a lower interest rate. |
| Start Building Your CIBIL Score Today | – Over 10,000 users have improved their CIBIL scores to 750+ in two months – Apply and activate the card within 5 minutes using the ZET app | A recent graduate with a CIBIL score of 600 used the Magnet FD Credit Card for small purchases. After two months, their score improved to 750, offering them better financial opportunities. |
Benefits of Opening a Fixed Deposit (FD)
A key feature of the Magnet FD Credit Card is that it is backed by an FD. Here’s how it enhances your credit card experience:
- Earn up to 7% interest on FD: Unlike most credit cards, where you simply use a line of credit, this card allows you to earn interest on your FD. This ensures that your money continues to grow, even as you use the card.
- Get 90% of your FD as credit limit: The card’s credit limit is linked to your FD, offering up to 90% of the deposit value as your spending limit. If you have an FD of ₹10,000, you can instantly get a ₹9,000 credit limit.
- Top up FD to increase card limit instantly: Need more credit? Simply top up your FD, and your credit limit will increase in real time. This flexibility allows you to grow your financial capacity whenever you need it.
- Use your FD without breaking it: One of the best features of this card is that you don’t have to liquidate or break your FD to access its value. You can continue to use your FD as collateral while also benefiting from the credit limit.
- FD starting as low as ₹5,000: You don’t need a large amount to open an FD for this credit card. With a minimum of ₹5,000, you can start enjoying all the benefits of a secured credit card.
Real-Life Example: A small business owner, concerned about maintaining cash flow, chose to open a modest FD of ₹20,000. They were able to access 90% of that amount as a credit limit for day-to-day expenses, all while earning interest on their deposit. This flexibility allowed them to manage their finances without compromising on liquidity.
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A Good CIBIL Score Can Save You Money
Your CIBIL score directly impacts your financial opportunities. Higher scores mean lower interest rates and better loan terms. Here’s how it plays out in real life:
- CIBIL score 300: If your CIBIL score is low (around 300), you won’t qualify for loans, and you might be ineligible for even basic credit cards.
- CIBIL score 550: With a slightly better score of 550, you may qualify for loans but at a high-interest rate, around 15%. For instance, if you’re buying a ₹10 lakh car, you could end up paying ₹1,50,000 in interest.
- CIBIL score 750: A score of 750 opens up more affordable financing options. The same ₹10 lakh car would now attract an interest rate of 10%, saving you ₹50,000 in interest payments compared to a lower score.
Real-Life Example: A couple wanted to buy a home but had a low CIBIL score of around 550. They were offered a loan at 15% interest. After using the Magnet FD Credit Card responsibly for a year, their score improved to 750, and they qualified for a 10% interest rate on their home loan, saving over ₹1 lakh in the long run.
Start Building Your CIBIL Score Today
With over 10,000 users already improving their CIBIL scores to 750+ using the Magnet FD Credit Card, now is the perfect time to start. By making responsible use of your credit limit, paying bills on time, and monitoring your credit, you can improve your financial standing in as little as two months.
Applying for the Magnet FD Credit Card is simple and takes just five minutes. You can activate your virtual card instantly using the ZET app and start using it for online purchases, bill payments, or any day-to-day expenses.
Real-Life Example: A recent graduate applied for the Magnet FD Credit Card, set up an FD of ₹8,000, and started using the card responsibly for grocery shopping and small online purchases. Within two months, their CIBIL score jumped from 600 to 750, setting them up for better financial opportunities.
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FAQs:
What is an FD Credit Card?
An FD-based credit card is a type of credit card where your fixed deposit (FD) acts as security. It allows individuals to get a credit card without needing a strong credit history. The credit limit is usually a percentage of the FD amount, and you can spend up to this limit every month. At the same time, you continue to earn interest on the FD. This is a great option for building credit history with minimal risk, as the FD backs your spending.
What is the Magnet FD Credit Card?
The Magnet FD Credit Card, available on the ZET app, is a credit card secured by a fixed deposit. It combines the benefits of both an FD and a credit card, while also helping users build a 750+ CIBIL score. Magnet is designed for people looking to establish or improve their credit history, all while enjoying the rewards and benefits of a credit card.
Who is Eligible for the Magnet FD Credit Card?
The Magnet FD Credit Card is ideal for anyone in India who wants to build or improve their CIBIL score. It’s accessible even to individuals with no prior credit history or income proof. There is no minimum credit score requirement, making it an excellent choice for beginners or those with a low CIBIL score looking to build it up.
Why Should You Choose Magnet Over Other Secured Credit Cards?
Magnet stands out from other secured credit cards due to several key benefits:
- Build CIBIL Score: Perfect for those with no or low CIBIL score.
- Secured by RBI: Your FD is protected by the DICGC, a subsidiary of the RBI.
- Joining Benefits: Get ₹21,000+ worth of benefits, including OTT subscriptions, travel discounts, and shopping vouchers upon approval.
- Up to 10% Rewards: Earn rewards on purchases at leading brands.
- Lifetime Free: No annual fees or hidden charges.
- Easy Access: No existing credit score or income proof needed to apply.
What is the Credit Limit for the Magnet FD Credit Card? Can It Be Increased?
The credit limit for the Magnet FD Credit Card is based on your FD amount. Typically, it’s set at 90% of the FD value. If you wish to increase your credit limit, you can simply increase the amount of your FD, giving you more financial flexibility.
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How Can I Get the Magnet FD Credit Card? What is the Minimum FD Amount?
The Magnet FD Credit Card can be obtained via the ZET app. To get started, you only need to make a minimum FD of ₹5,000 with SBM Bank in India. Once your FD is set, you can enjoy the benefits of both the FD and the credit card.
Can I Break My Magnet FD? What Happens if I Do?
Yes, you can access your Magnet FD funds at any time. Unlike traditional FDs, Magnet offers flexibility, allowing you to withdraw or transfer 90% of your FD without breaking it, and you’ll still earn up to 7% interest on the remaining amount. However, if you decide to break your FD within 390 days of activation, a nominal fee of ₹500 will be charged. After 390 days, there are no fees for breaking the FD.