There is no doubt that credit cards have become important instruments for individuals to buy first and pay later. The use of credit cards has changed over time and is now seen as a deciding element in persons with good credit scores.
Furthermore, the card allows the cardholder to enhance both their budget and credit rating.
Having a low CIBIL score does not mean you cannot obtain a credit card. Individuals with little or no credit history have a few possibilities. This blog will look at many possibilities for getting a credit card even with a poor CIBIL score.
What is CIBIL Score?
A CIBIL score, often known as a credit score, is provided by TransUnion CIBIL, one of India’s three credit bureaus that keeps track of credit-related activity.
The bureau protects against identity theft and other forms of fraud by providing a complete picture of a person’s credit history and financial reputation. Besides that, the bureau offers advanced information solutions to organizations, allowing them to make informed decisions while avoiding threats.
Some alternatives for credit card seekers with bad CIBIL score:
Secured credit cards:
Secure cards are designed for people with poor or no credit history.This is the most simple and convenient way for an individual to obtain a credit card without having a CIBIL Score. Individuals with no or low credit scores can utilize an insecure credit card.
However, with a secure card, an individual can improve their CIBIL Score. To obtain a secure card, you must give a security deposit, which serves as collateral. Even if your CIBIL Score is low, you may have a better chance of approval because they have your deposit as collateral.
List of credit cards that can be used against fixed deposits:
| Credi card | Minimum Fixed Deposit Amount |
| Axis Bank | Rs.20,000 |
| ICICI Bank | Rs.20,000 |
| SBI | Rs. 25,000 |
| Union Bank of India | Rs.25,000 |
| Andhra Bank | Rs.10,000 |
| Kotak Mahindra | Rs.25,000 |
Credit cards with higher interest rates:
Individuals with low credit ratings might apply for credit cards with high interest rates. Some lenders provide credit cards to people with low credit scores, but these options can be expensive and difficult for people to repay.
Get an add-on credit card:
Using an add-on or extra credit card is another approach for someone to improve their CIBIL score.
An individual can get an add-on credit card if they are the household’s primary credit cardholder. Add-on credit cards provide the same benefits and features as the primary credit card.
However, the credit limit is shared by the primary and add-on credit cards. Individuals can take advantage of the benefits of add-on credit cards while also improving their credit scores.
Smaller bank cards:
Applying for a credit card in bigger banks with a low CIBIL score is difficult. Some banks can be more flexible with credit and grant credit cards based on factors other than your CIBIL score when evaluating your application. In smaller banks, the individual can increase their CIBIL score.
Conclusion:
There is no denying that an excellent credit report or a high CIBIL score is required to obtain a credit card. However, there is always another option based on different suitability. In some situations, you can use the methods mentioned above to obtain the credit card that require for your financial situation.
Personal loans are also an alternative for your financial needs and can help you build your CIBIL score. Zap Money provides instant personal loans to clients with excellent CIBIL scores.
However, surpassing your budget can make it harder to find a suitable match. Things could go wrong if you overspend and fail to repay. Use your credit card responsibly.
FAQ:
Can i get credit card with 700 credit score?
Yes, 700 is considered a good credit score, and you are eligible for a credit card. However, a higher credit score is always preferred for obtaining a credit card.
How bad is 500 credit score?
Credit scores ranging from 300 to 580 are considered bad credit scores. A 500 credit score is much lower than the average credit.
What is Bad credit score?
Credit scores ranging from 300 to 580 might be considered bad credit. Having a low credit score can make it difficult to obtain a loan for financial necessities.
Can I get credit card with CIBIL 720?
Yes, it is possible to get a credit card with a credit score of 720. Many banks and financial institutions offer credit cards with a minimum credit score of 650.
Does FD affect CIBIL Score?
No, FD is not related to your credit and it does not affect credit score. Credit only relates to loans, credit cards, and repayment defaults.
Is 700 a good credit score?
Credit scores ranging from 700 to 749 might be considered good credit, however slightly lower than the average.
How to get a credit card fast?
A credit score of 749 or higher can qualify you for an instant credit card. Banks and financial institutions provide instant virtual cards that you can use immediately.
What credit score is too low?
Credit scores ranging from 300 to 579 are low. Banks and NBFCs do not prefer individuals with low credit scores when giving loans, credit cards, and etc.
