Having a credit card can be very helpful but you require a good credit score to apply for one. Read ahead to know how much CIBIL score is required to get a credit card.
Your CIBIL score can range from 300-900, with scores above 750 considered particularly good for most credit related products.
There is no fixed credit score requirement for getting a credit card, as the requirements vary for each vendor. Having a higher credit score will make it easier for you to get approval for a credit card.
Generally, a CIBIL score of 750 or above is considered a good score for getting a credit card. But many banks offer credit cards even if your score is lower than 750. You might have to pay higher fees and interest rates if your credit score is low.
Here is a detailed table describing ‘how much CIBIL score required for credit card’ -
Chance of Getting Credit Card
750 or above
650 - 749
Medium, may get credit card by paying higher interest rates and fees
649 or below
Low, very difficult to procure a credit card, can apply for secured cards instead
If you get a card utilizing your high CIBIL scores, you can enjoy many perks. Some of them are -
Easy approval for credit cards from top vendors
Credit cards with high limits
Low interest rate on amount borrowed
More power to negotiate interest rates on card
If your credit score happens to be below 700, or you are new to credit, it is not impossible to get a credit card. Other criteria like your income, debt to income ratio, etc. can be taken into account before issuing a credit card to you.
You can also choose to apply for a secured card, which can be taken against your fixed deposit. In case of any delayed payments, your dues can be redeemed from your fixed deposit money.
The SBI Card Unnati, the Axis Bank Insta Easy Credit Card, and the ICICI Bank Instant Platinum Credit Card are some examples of popular secured credit cards.
The best way to work on your credit score is to take a credit card. Here are some tips on improving your score using a credit card -
The most major step of building your credit score is to pay the monthly bills in full within the due date. You can set up reminders so that you don’t miss them, as missing payments show negatively on your credit report.
If you are short of funds on a specific month, make sure to at least pay the minimum amount within the due date. That way you will be able to maintain a steady credit score.
Often credit cards may have lucrative offers, but make sure to never overspend. Also take care to not utilize more than 30% of the total credit that is allotted to you. This way, you will be able to make timely payments, and they won’t pile up.
Checking your credit score and report regularly will let you know of any changes in it. If you see any unauthorized change that might be affecting your score, rectify them as soon as possible.
Whenever you apply for a loan or a credit card, the lender runs a hard check on your credit score. This shows as an enquiry on your credit report. Making too many inquiries might reduce your credit score.
Thus, make sure to check your score on your own, before applying for a loan. This way you will have minimum enquiries on your report.
As credit cards are unsecured loans, banks take credit score requirements quite seriously before approving your request. They need to know if you will be able to pay the bills on time, and maintain the card.
If you have a credit score of 750 or more, getting a credit card should not be difficult for you.
But even if you have a low credit score, you can always apply for a secured credit card, and use it to build your credit score.
Yes, credit cards are unsecured loans, and thus banks or vendors prefer to check your CIBIL score before approving a card.
Almost all banks give credit cards easily if you match their criteria. To name a few, you can get HDFC, Bajaj Finserv, and Kotak Mahindra credit cards easily.
Yes, you can get a credit card with a CIBIL score of 650, but you might have to meet other criteria. You might also have to pay higher interest rates or fees as 650 is not a very high credit score.
A CIBIL score of 750 and above is considered most favorable for a credit card. But if you have a lower score, you may still be able to get a card with a higher interest rate if you meet other criteria.
Application for a new credit card is like the application of a new loan. So when a bank runs an enquiry, it shows up in your CIBIL report. Too many queries at the same time may end up affecting your credit score.
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