What is Unsecured Credit Card?
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An unsecured credit card does not require any collateral or fixed deposit, while a secured credit card is backed by an FD. Unsecured cards are issued based on your credit score and income, whereas secured cards are easier to obtain for those with limited credit history.
A credit card is a transactional card that enables the holder to make purchases of goods and services or withdraw advance cash on credit.
Credit cards are a convenient tool for managing your short-term financing needs. A credit card lets you borrow certain money and repay it later in instalments.
Getting an unsecured credit card with no credit history can be challenging, as banks assess creditworthiness before approval. If you're new to credit, consider starting with a secured credit card to build your credit score, then upgrade to an unsecured variant.
Eligibility for an unsecured credit card typically includes a credit score of 750 or above, stable income proof (salary slips or income tax returns), age between 21-60 years, and residency in India. Requirements may vary by bank and card type.
Credit cards in India have become a popular payment method. More than half the population owns instant-approval credit cards. To get a credit card, apply online using the following steps:
● Visit Kotak Mahindra Bank’s website
● Check your credit card eligibility
● Fill out the online application form and submit it
● Track your application status online
At Kotak Mahindra Bank, it is easy to understand how to apply for a credit card.
Interest rates on unsecured credit cards are similar to secured cards, typically around 3-3.5% per month on outstanding balances. The key difference lies in approval criteria and credit limits, not interest rates. Always check your card's fees and charges before applying.
Here are the eligibility criteria for a credit card:
● For the Royale Signature Credit card, League Platinum Credit card, Delight Platinum Credit card, Essentia Platinum Credit card, PVR Platinum Credit card, PVR Gold Credit card, and Urbane Gold Credit card primary applicant must be in the age bracket of 21 – 65 years.
● For 811 Dream different Credit card, NRI Royale Signature Credit card, the primary applicant should be in the age bracket of 18 years to 75 years.
● Must be an Indian resident
● Must be a salaried employee or self-employed (With income proof)
● Must meet the income requirement set by the bank
● Must be a resident of the serviceable locations within India
An unsecured credit card helps build credit by reporting your repayment behaviour to credit bureaus. Timely payments, maintaining a low credit utilisation ratio (below 30%), and avoiding defaults improve your credit score over time, making you eligible for better financial products.
With Kotak Mahindra Bank’s free credit card apply option, applying for a credit card is a relatively simple process. Here are the steps on how to get a credit card:
● Clicking the "Apply Now" icon in the section of the credit card that you wish to avail Alternatively, you can visit the bank branch or get in touch with an official representative
● Submit applicant details such as name, age, birthdate, residential address, net income, PAN and others
● Must provide proof of personal documents, PAN Card, KYC documents, proof of address and proof of income or employment status
● Keep track of application status.
The bank determines the credit card purchasing and withdrawal limit at its sole discretion.
The issuer offers the add-on credit card facility to the primary applicant.
To get an instant credit card, you must apply online, but choosing a credit card for the first time is a little difficult. The following points must be considered when you are choosing a credit card for the first time:
● Check annual fees and other charges
● Check the maximum credit limit
● Check the latest offers available on the credit card
● Check the payment options available
● Check the rate of interest charged on the balance amount
● Check the cash withdrawal charges
Credit bill payments can be made with ease using multiple payment options. These include:
● Mobile Banking
● Net Banking
● WebPAY
● NEFT/IMPS
● Auto Debit
● VISA Payment
● Phone Banking
● Over the Branch Counter
● Cheque Payment
The first action in the case of theft or loss of your credit card is to get it blocked by contacting the bank. This prevents the risk of an unauthorized transaction.
You can use the customer care number to inform the official representatives of the loss or theft. Upon doing this, they will block the existing card and begin the procedure for issuing a new credit card.
Within the stated time frame, or they may become invalid. Thus, it is essential to carefully read through the credit card agreement and know the reward points' validity and expiry.
Once you know how to get a credit card, applying for it online is a quick process.
The free credit card apply feature allows you to get a credit card instantly and helps you earn. Here is how you can redeem your Kotak credit card rewards:
● Cashbacks- Your available reward points can be redeemed as cashbacks which can be transferred into your statement credit.
● Shopping- Reward points can be redeemed while shopping at specific stores with which the credit card issuer collaborates.
● Loyalty Programs- You can redeem your reward points through loyalty programs at hotels, restaurants and airlines.
Credit card balance transfer is the process of transferring owed balance from one credit card account to another. Upon carrying out this process, the debt is owed to the new card issuer as opposed to the original card issuer.
Disclaimer: This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. The Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Article. The information contained in this Article is sourced from empanelled external experts for the benefit of the customers and it does not constitute legal advice from the Bank. The Bank, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein
Introduction
Many first-time credit card applicants assume that getting a card means starting with a fixed deposit or providing some form of security. Most credit cards issued today are unsecured — approved based on your income and credit profile, not collateral.
Unsecured credit cards are the most common type in India. They give you the flexibility to manage expenses, earn rewards, and build credit without having to set aside savings.
Kotak Mahindra Bank offers unsecured credit cards that align with different spending habits and financial goals, all structured within RBI-compliant guidelines to ensure transparency and responsible lending.
Table of Contents
What is an Unsecured Credit Card?
An unsecured credit card is a credit card issued without requiring any security deposit or collateral. Unlike secured cards that need you to place a fixed deposit (FD) as a guarantee, unsecured cards are approved based on your credit profile, income stability, and repayment history.
How Does It Work?
When you apply for an unsecured credit card, the bank evaluates:
Once approved, you receive a credit limit based on these factors. You can spend up to this limit and repay either in full or as a minimum amount due each month. Interest is charged only on outstanding balances carried forward beyond the due date.
Key Features
Unsecured cards are regulated by the Reserve Bank of India (RBI) under the Master Direction on Credit Card and Debit Card operations, ensuring transparency in fees, charges, and terms.
How Do Unsecured Credit Cards Differ from Secured Credit Cards?
Understanding the difference between unsecured vs secured credit cards helps you choose the right option based on your financial situation.
Aspect
Unsecured Credit Card
Secured Credit Card
Collateral Requirement
No collateral or FD needed
Requires a fixed deposit as security
Approval Criteria
Based on credit score, income, and repayment history
Easier approval, even with low or no credit history
Credit Limit
Determined by creditworthiness
Usually 80-90% of the FD amount
Interest Rates
Standard rates (typically 3-3.5% per month on outstanding balances)
Similar rates, but FD earns interest separately
Impact on Credit Score
Helps build credit faster with diverse credit types
Good for building credit from scratch
Eligibility
Moderate to good credit score required
Suitable for first-time users or those rebuilding credit
What Are the Pros and Cons of Unsecured and Secured Credit Cards?
Before choosing between unsecured and secured credit cards, reviewing the advantages and limitations side-by-side helps you make an informed decision.
Factor
Unsecured Credit Card
Secured Credit Card
Collateral
No FD or deposit required funds remain liquid
Requires upfront FD—funds locked until card closure
Credit Limit
Higher limits based on creditworthiness and income
Lower limits (80-90% of FD amount)
Approval Process
Requires good credit score (typically 750+)
Easier approval for new to credit customer
Rewards & Benefits
Enhanced cashback, travel perks, and lifestyle rewards
Depends on FD amount & card type
Credit Building
Builds credit faster with diverse credit portfolio
Good starting point for building credit from scratch
Spending Flexibility
Greater purchasing power for everyday and large expenses
Limited spending due to lower credit limits
Risk of Overspending
Higher risk if not managed responsibly
Controlled spending tied to FD amount
Interest on Balances
Interest charged at 3-3.5% per month on outstanding amounts
Similar interest rates apply on unpaid balances
Impact of Missed Payments
Severe impact on credit score and future borrowing
Negative impact on credit score, but FD remains safe
Liquidity
No funds blocked—savings available for emergencies
FD locked until card is closed
An unsecured credit card is ideal if you have a stable income, good credit score, and want higher limits with better rewards. A secured card works best if you're starting your credit journey or rebuilding your score and prefer a controlled approach.
When Should You Choose an Unsecured Credit Card?
Choosing between secured and unsecured credit cards depends on your financial goals, credit history, and immediate needs. Here's when an unsecured credit card makes sense:
You Have a Stable Income and Good Credit Score
If your credit score is above 750 and you have a steady income source, you're likely eligible for an unsecured credit card with attractive benefits. Banks assess your repayment capacity and creditworthiness, making approval straightforward.
You Want Higher Credit Limits and Better Rewards
Unsecured credit cards typically offer higher credit limits compared to secured variants. They also come with enhanced rewards programmes, cashback options, and lifestyle benefits—perfect if you're looking to maximise your spending efficiency.
You Prefer Not to Lock Funds in a Fixed Deposit
If you'd rather keep your savings liquid and accessible, an unsecured card is the better choice. You don't need to pledge an FD, which means your funds remain available for emergencies or other investments.
You're Building a Diverse Credit Profile
Having a mix of credit types of loans and credit cards strengthens your credit profile. An unsecured credit card adds diversity to your credit portfolio, positively influencing your credit score when managed responsibly.
Conclusion
An unsecured credit card offers financial flexibility without the need for collateral, making it the preferred choice for individuals with stable incomes and decent credit scores.
It helps you build credit, access rewards, and manage everyday expenses efficiently. However, responsible usage is key timely repayments protect your credit score and help you avoid unnecessary interest charges.
If you're just starting your credit journey or rebuilding your score, a secured card might be a better starting point.
But if you meet the eligibility criteria, an unsecured credit card unlocks greater financial freedom and benefits.
Kotak Mahindra Bank offers a range of unsecured credit cards designed to suit different needs—from digital UPI payments to cashback rewards. Explore your options and choose the card that aligns with your lifestyle and financial goals. For assistance, reach out to our team for personalised guidance.
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