Insta-credit card for instant cash!

In the world of instant coffee and instant cash through ATMs, insta-credit card is yet another product issued by many of the banks. Unlike the normal credit card issued by banks without any security, insta-credit card facility is issued against a fixed deposit by the bank. In other words, while the amount spent through normal credit card is an unsecured loan, the insta-credit card is a secured loan, a secured line of credit made available by the banks against fixed deposit.

There are quite a few advantages of an insta-credit card. Since it is a secured loan, it involves minimum paper work and, unlike a normal credit card, it is issued over the counter. Most importantly, the interest payable on the loan availed through insta-credit card is comparatively lower than the interest payable on normal credit card. Also, there is no annual fee to be paid for insta-credit card. There is no income criteria to be fulfilled for the issue of insta-credit card since the card is issued against fixed deposit held with the bank by the applicant. Insta-credit cards of some banks may offer reward points on the purchases made or utility and other bills paid through the card and these points can be redeemed against merchandise at stores specified by the bank.

It must be remembered that an insta-credit card is issued against an FD held with the bank, hence if the cardholder defaults in payment of outstanding dues, the bank will recover the dues along with interest thereon from the amount of fixed deposit. Hence, it is advisable to use the insta-credit card prudently and not to default on repayment of loan availed on it.