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Thorough research shows that CIBIL scores play a crucial role in credit card approvals. A higher score improves the chances of approval and may lead to better benefits, such as higher credit limits and lower interest rates.

 

Lenders assess credit scores to determine an applicant’s repayment capability, particularly for unsecured credit cards where the risk of default is greater. A score near 700-750 reflects responsible credit management, assuring lenders of timely repayments and financial stability.

Minimum CIBIL Score Required for a Credit Card

A CIBIL score of 750 or above is considered excellent and is usually sufficient to get your credit card application approved. Notably, card issuers also consider other details on your CIBIL credit report, such as how many credit cards you already have.

 

Some other factors are payment delays, your debt-to-income ratio, etc. Depending upon these other factors and your relationship with the card issuer, you might also get a credit card even if your CIBIL score is less than 750.

 

However, if your score is less than 700, it may prove difficult to get a credit card.

How Your CIBIL Score Impacts Your Eligibility for a Credit Card

Your CIBIL score directly impacts the chances of approval of your credit card application. The higher your CIBIL score, the more likely it is that your credit card application will be approved.

 

Refer to the following table to get an idea of how the approval of your credit card application depends upon your CIBIL score:

CIBIL Score Range

Credit Card Application Approval Probability

750 or above

A score of more than 750 is considered to be ideal. This can help you get a credit card of your choice at great terms.

700 to 750

A score that falls within the 700 to 750 range makes you eligible to get a good credit card. However, the terms may not be as favourable.

Less than 700

If your credit score is lower than 700, then the chances of your credit card application getting rejected are higher. In such cases, consider building your score before applying for a new credit card.

Why do Banks/NBFCs Check Credit Scores for Credit Card Approvals

Banks and NBFCs check CIBIL scores to assess an applicant’s financial behaviour and repayment capacity before approving a credit card. As credit cards are unsecured credit products, lenders need to minimise the risk of defaults. A good CIBIL score assures them of responsible credit usage and timely payments. 

 

Below are the reasons why your credit or CIBIL score is one of the primary eligibility criteria 

  • Assess Creditworthiness

A high CIBIL score reflects responsible financial behaviour, indicating that applicants are more likely to repay dues on time. It helps issuers evaluate the applicant’s creditworthiness before approving a credit card.

  • Minimise Risk of Default

As credit cards are unsecured, issuers rely on credit scores to assess the risk of non-payment. A low score may signal a higher likelihood of default, influencing the approval decision.

  • Determine Credit Limit and Interest Rate

A strong credit score enables applicants to secure higher credit limits and lower interest rates. Issuers use this information to tailor credit offerings based on the applicant’s financial profile.

  • Ensure Responsible Lending

Checking credit scores allows banks and NBFCs to make informed decisions, promoting responsible credit distribution. It ensures credit is extended to individuals who demonstrate financial discipline.

Credit Cards for Applicants with Low Credit Scores

Even with a low CIBIL score, getting a credit card is still possible. Here are some options to get credit cards for a low CIBIL score:

Secured Credit Card

One of the simplest ways to get a credit card with a low credit score is through a fixed deposit. The fixed deposit serves as collateral, and the credit limit is determined by its amount. In case of missed payments, the bank has the right to recover the outstanding amount from the deposit. 

Student Credit Card

Student credit cards are less common, but some banks offer them. These cards generally come with a low credit limit, aligned with students' financial needs. To get a student credit card, students need to provide proof of:

  • A part-time job

  • A Fixed Deposit or Savings Account

Add-on Credit Card

An add-on credit card is linked to a primary cardholder’s account. Those with an existing credit card can apply for an add-on card for a family member, such as a parent, spouse, or sibling. Banks typically do not check the credit score of the added member.

How to Improve Your CIBIL Score for a Credit Card

A good credit score requires proper financial habits. Here are some key practices to help increase it:

Make Payments on Time

Paying credit card bills on time is crucial. Many issuers offer apps with reminder features, which can help avoid late payments.

Use Multiple Credit Cards

Holding both secured and unsecured credit cards demonstrates the ability to manage different types of credit responsibly. Although challenging, it can improve the chances of approval.

Avoid EMIs for Small Purchases

Opting for EMIs on small items, such as shoes, can result in forgotten payments. It is essential to set reminders when using EMIs to ensure timely repayment.

Monitor Your CIBIL Score Regularly

Checking the CIBIL score report every other month helps track financial health and make necessary adjustments to spending or repayment strategies. Regular checks do not affect the credit score.

Check CIBIL Score for Credit Card

Checking your CIBIL score is simple and requires just a few steps. You can do this through the official CIBIL website. Here is how:

  1. Visit the CIBIL website

  2. Enter the required information and click ‘Continue’

  3. Provide additional details, such as your PAN number

  4. Respond to queries regarding instant loans and credit cards

  5. Log in using the provided password

  6. Once logged in, access your CIBIL score from the dashboard

FAQs on CIBIL Score for Credit Card

Why is a CIBIL score important for a credit card application?

The CIBIL score indicates the creditworthiness of the cardholder. It ranges from 300 to 900, with higher scores being preferable. A score above 750 demonstrates that you manage credit responsibly. As regular credit cards are unsecured, issuers rely on your credit score to assess the likelihood of timely repayments.

How much credit card limit can I get based on my CIBIL Score?

The credit limit depends on the issuer. However, a higher CIBIL score increases the likelihood of securing a higher limit. Issuers consider your repayment history, income, and existing debts when determining the final limit.

How much CIBIL score is required to get a credit card?

Banks generally require you to have a minimum CIBIL score of about 700 to approve your credit card application. However, depending on your credit history and your existing relationship with the bank, you may get a credit card even with a lower CIBIL score.

How to get a credit card with a low CIBIL score?

If you have a good existing relationship with the bank, you can sometimes get a credit card even with a low CIBIL score. Otherwise, you can always get a secured credit card against a fixed deposit.

Does your CIBIL score affect your credit card eligibility?

Yes, your CIBIL score directly influences your eligibility for a credit card. A higher score increases the chances of your credit card application approval.

Which credit cards are best for low or no-CIBIL-score applicants?

Applicants with low or no credit history can consider secured or add-on credit cards. For a secured credit card, opening a fixed deposit with the respective bank is required. For add-on credit cards, a guardian with a good credit score and an existing credit card is necessary.

Does using a credit card improve my CIBIL score?

Using a credit card responsibly can improve CIBIL score. Timely payments and maintaining a low utilisation ratio are crucial factors. Applicants with low scores can opt for a credit card against a fixed deposit to build their credit history before applying for regular credit cards.

Does having multiple credit cards improve your credit score?

Possessing multiple credit cards can either improve or lower CIBIL scores, depending on usage. A combination of secured and unsecured credit cards demonstrates the ability to manage diverse credit types, which may increase the chances of future approvals.

Can I get a credit card if my CIBIL score is 670?

The minimum CIBIL score for a credit card usually starts from 700. Some issuers might offer credit cards with a score of 670, but this could result in higher interest rates and lower credit limits.

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