CIBIL Score Required for Credit Card

Before we begin, answer these questions- Is your credit card score low? Or do you have quite a bad CIBIL score? If your answer to these questions is yes, then you must continue reading this blog as we have an effective solution to your problem.

A credit card is an essential financial element that can be needed at any point in your life. Whenever you run out of money or you have to buy a pretty expensive product or service, a credit card comes in handy at the time of financial distress.

If you already have it, then Kudos! And if you don’t, plus you have a bad credit card CIBIL score, then you must get serious about improving your CIBIL score. Or you would never get a credit card in your entire life.

But hey, fret not! We know how to revive your score and get you a card even with a poor credit score. How? Let’s find out.

An Overview of Credit Score and Credit Card Applications

Credit Scores are the numbers that represent a consumer’s creditworthiness that ranges from 300 to 900. So, if you wish to get a credit card, you must have a good credit score that is above 700.

Obtaining a credit card has become fairly simple now. All you need to have – an identity proof (Passport/Driver’s license/Voter ID card, etc.), PAN card, address proof, and passport size photographs.

Once you have submitted these documents, the banks will run a check on your CIBIL score for the credit card application. If everything is fine, your application will be approved in no time.

Why Do Banks Check Your Credit Score Before Issuing a Credit Card?

Banks in India offer credit cards based solely on the applicant’s creditworthiness. These cards are kind of unsecured lending. Therefore, banks run a credit score check for the applicants willing to obtain a credit card. This is done to ensure they don’t end up giving cards to risky customers or those who are already running the risk of defaults. Otherwise, the bank will have to suffer a loss.

The simplest way to determine whether a customer is financially stable to handle a credit card is to monitor his/her track record. The banks or financial institutions do this by accessing customers’ credit reports and scores from CIBIL agencies.

Once your credit report is in the hands of banks, they can easily track the record of your late payments and defaults by reviewing your credit score. Moreover, banks also have access to view a record of any credit cards or loans that you currently have. Besides, they use CIBIL Score to gauge your creditworthiness.

In case you have a bad credit history, there’s a high possibility that the bank could reject your loan or credit card application. As a matter of fact, having no credit history at all is also considered a bad credit history.

How to Check Your Credit History?

You need to request a credit report in order to check your credit history. Yes, you heard that right! Because a credit report contains the summary of your credit history.

Follow the below-mentioned steps to access your CIR (Credit Card Information Report) from the CIBIL website.

Step 1: Visit the official website of CIBIL.
Step 2: Go to the credit report section and fill in all the required details such as your name, date of birth, ID details, phone number, other contact details, etc.
Step 3: Make a payment towards your credit report, which will amount to approximately ₹ 470 or more, depending on the current charges.

You will receive your credit report in the mail within 15 to 20 working days.

Or, you can also request a credit report simply over the phone. Just follow the steps below:

Step 1: Dial 1-877-322-8228 for requesting a credit report.
Step 2: The recorded system will ask you questions such as your address, birth date, and Social Security Number. Answer them all.
Step 3: Select the credit reporting company to extract the credit report. You will receive one free credit report every year.
Step 4: The chosen company will mail your credit report to you within 2-3 weeks after the request.

Once you have got the report, you can view your entire spending and bill payments, etc.

Minimum CIBIL Score Required to Get a Credit Card

Before we delve into discovering the minimum CIBIL score for a credit card, it’s important we discuss the score ranges first.
The CIBIL score of a credit card usually ranges from 300 to 900. While a score ranging from 690 to 750 is counted among the “good” range, a score above 750 is known to fall in the “excellent” category. The more your credit score is close to 900, the higher the chances are of getting pre-approved loans and credit cards.

Now coming back to our main topic, what’s the minimum CIBIL score for a credit card? The minimum or suitable CIBIL score for obtaining a credit card is 750. The applicants with a score of less than 750 might be rejected from getting credit cards at some of the top companies.

However, many banks also offer credit cards to people having scores below 750. Since 700 is a good score, you can also get a card at this range. But the fact remains that people with a credit range of more than 750 will be a lot more eligible to get cards than those not falling in this category.

Usually, the card lenders follow a pattern while assigning credit. Most of them consider 700 to be a good score, and that’s how it helps in determining the minimum credit score threshold laid out by a bank while offering a credit card.

But this doesn’t mean that people with poor or low credit scores can’t avail of credit cards. They too can avail of but with certain restrictions on spending limits, and they must also meet various other eligibility requirements.

Credit Cards for People with Bad Credit or Low CIBIL Scores

If you have a bad credit or CIBIL score, you might not qualify for credit cards. Nevertheless, you can implement some methods to improve it.

Some of the top credit cards you can choose even when you have bad credit values in India are as described below:

1. HDFC Money Back Credit Card

You can avail of this credit card based on your salary. It’s easy to obtain and can be a good choice for people trying to increase their credit scores. Here are some of the key features of HDFC Money Back Credit Card:

Key Characteristics of the HDFC Money Back Card are:

• For every ₹ 150 spent, you earn two reward points.
• There won’t be any lost card liability once you have reported the loss of the card.

2. Axis Bank Insta Easy Credit Card

If you are a working professional or have a fixed deposit, you can easily avail of this card. You need to go through minimal documentation, and you will be done. The card will be significantly useful for people attempting to enhance their CIBIL score.

Key Characteristics of Axis Bank Insta Easy Credit Card are:

• The credit card waves off a 1% fuel surcharge on fuel transactions.
• You can receive a credit limit of up to 80% of your fixed deposits.
• No annual or joining fees.
• You can withdraw cash of up to 100% of the credit limit.

3. SBI Advantage Plus Credit Card

One of the best things about this credit card is that it has global acceptance. Besides, you can easily obtain it with a fixed deposit.
Have a look at some of the key features of the SBI Advantage Plus Credit Card.

Key Characteristics of SBI Advantage Plus are:

• You can easily convert your SBI Advantage Plus Credit Card spending into EMIs using Flexipay.
• You can apply for add on cards for siblings, parents, children, or spouses.
• Up to 85% of your total fixed deposit amount is your credit limit.

4. Kotak Mahindra Aqua Gold Credit Card

If you want to go for the best credit cards in the country, Kotak Mahindra Aqua Gold Credit Card would be the best option. Moreover, the card will help you revive low CIBIL scores.

Key Characteristics of Kotak Mahindra Aqua Gold Card are:

• Up to 80% of the total fixed deposit amount can be your credit limit.
• The card offers a fuel surcharge waiver on all fuel transactions made between ₹ 500 to ₹ 3,500.
• No interest on cash for up to 48 days throughout the year.
• If you make transactions on the IRCTC website up to a maximum limit of ₹ 500, you will get a railway surcharge waiver.

5. SBI Unnati Credit Card

If you are looking for a card with no annual fee and is a secured card, SBI Unnati could be your go-to choice. You can obtain it against a fixed deposit of above ₹ 2.5 lakh.

Key Characteristics of SBI Unnati Credit Card are:

• You don’t have to pay any annual fees for the first four years.
• With Flexipay, you can easily convert your credit card spending into EMI.
• You can withdraw cash using any ATMs across the globe.
• Contactless transactions are possible.
• You can apply for add on cards for your spouse, children, siblings, or parents.

Wrapping Up

Credit cards are no more a convenient luxury, with their use getting diversified into being one of the deciding factors of a good credit score. Additionally, they predominantly help in improving your credit ratings.

So, if you have a low credit score, a credit card is a great way to improve your rating. Above all uses, credit cards have always been a powerful tool for dispersing the cost of borrowing.

Frequently Asked Questions (FAQs)