One out of every third Magnet users is below the age of 25
FinTech BizNews Service
Mumbai, 5 November, 2024: In a major stride towards financial empowerment, 94% of the users of Magnet FD Credit Card improved their credit score within three months of using the co-created secured credit card by ZET and SBM Bank.
Customer trends by ZET suggest that ever since its launch, Magnet FD Credit Card has found its popularity among those who have low credit score and New to Credit (NTC) users. According to ZET, around 81% of the users who availed Magnet had an initial credit score of 650 or less before using the credit card. Among them, over 30% were NTC for whom Magnet was the first credit product.
ZET’s data also revealed that around 94% of the total users of Magnet improved their credit score that ranged between 700-800 within three months of using the FD-backed credit card. These credit cards are increasingly becoming popular ever since the regulator increased risk weightage on unsecured credit cards. Industry data suggests that almost 100000 secured credit cards are issued every month but unlike unsecured credit cards, they have a 100% approval rate since they are backed by the Fixed Deposit.
Commenting on the trend, Manish Shara, Co-Founder & CEO, ZET, said, “The popularity of secured credit cards as a Credit Score builder product is rapidly increasing among those who have a poor or no credit score (NTC customers). In India, where limited credit access is a common challenge, Magnet FD credit card fills a crucial gap and actively helps people build a strong financial foundation. It is encouraging to witness that one in four Magnet users is completely new to credit. Magnet not only stands as a catalyst for NTC customers but also for those with poor credit history in accessing easy credit products. Our data shows that 94% of our customers improved their credit score within just three months of responsible usage. Magnet is an exciting proposition to build credit score while enjoying the benefits of a normal credit card.”
ZET’s data also suggests that around 34% of the users were below the age of 25 years, 55% between 25-40 years, and 10% above 40, thus indicating that young users are becoming financially aware and want to build their Credit Score through a FD credit card. Hyderabad topped the demand for the Magnet credit card followed by Bengaluru, Jaipur, Kolkata, Lucknow, New Delhi, and Mumbai.
Especially designed for empowering individuals, who don’t have a credit score or aiming to better their credit scores, Magnet is a secured credit card backed by a Fixed Deposit (FD). Users also get joining benefits worth Rs. 21,000+ including OTT subscription of some of the popular platforms like Disney Hotstar, Sony LIV, Zee 5, and offers on dining, travel & more, and up to 10% rewards on top brand vouchers such as Amazon, Flipkart, Myntra, and many more.
Magnet comes against an FD of minimum Rs.5,000 with 90% of the amount as the credit limit. The FD is secured as per RBI guidelines, and is insured up to Rs.5 lacs by DICGC. Users can also enjoy up to 7% interest on their Fixed Deposits, further enhancing their financial well-being. Magnet is also a lifetime-free offering with no renewal fee or hidden charges, and can be easily taken owing to no income proof or prior credit history and guaranteed issuance, ensuring affordability without compromising on benefits as a commitment to financial accessibility.
