New Delhi, May 21 -- There has been growing awareness about credit cards in India, but the number of users still remains low, with 118.6 million credit cards issued as of end-March, a penetration of only 8.5%. This is because of strict credit appraisal processes that leave a large segment of the population underserved.

In such a scenario, customers can opt for a secured or fixed deposit (FD)-backed credit card instead of the ubiquitous unsecured card. Secured cards not only provide similar benefits as unsecured cards, including reward points, lounge access, discounts, cashbacks, lifestyle perks and welcome vouchers, but also offer comparatively lower joining and annual fees.

Low/No credit history: New-to-credit individuals, including Ge...