CIBIL score or credit score is a three-digit number ranging from 300 to 900 that represents an individual’s creditworthiness. While the minimum CIBIL score requirement for a credit card varies between issuers, they usually prefer applicants with a score of 700 and above.
Also Read: How to Increase Your CIBIL Credit Score
Most credit cards are unsecured, which means an applicant does not have to pay collateral. This means the credit card issuer has to take a higher risk.
CIBIL score is calculated by Credit Information Companies or credit bureaus based on an individual’s credit payment history across loan types and credit institutions. The CIBIL score reflects an individual's creditworthiness.
The higher the credit score, the more likely it is that the loan will be repaid. Having a good credit history, no repayment defaults, and a high CIBIL score will increase the chances of your credit card approval.
There is no fixed minimum CIBIL score requirement for a credit card application. Most issuers accept a score of 700 and above.
While the CIBIL score plays a big role, it is not the only criteria your eligibility will be judged upon. Credit card issuers also check other factors like employment, debt-to-income ratio, existing debt, annual salary, etc.
So, even if your credit score is lower than 700, based on these factors your application might still get approved. However, with a low credit score, you may have to pay higher fees and interest rates.
Creditors use the CIBIL score as a rating system to assess someone’s creditworthiness. Individuals with a score of 700 or above have a higher chance of getting their credit card application approved.
| CIBIL Score Range | Rating |
|---|---|
|
300-499 |
Poor |
|
500-649 |
Average |
|
650-749 |
Good |
|
750-900 |
Excellent |
Sometimes due to unemployment, medical emergencies or unexpected calamities, individuals can end up with a low CIBIL score. In such situations, there are still ways to get hold of a credit card.
Several banks and credit card companies offer secured credit cards which do not ask for a minimum CIBIL score for eligibility. These credit cards are offered against fixed deposits.
Once the credit card has been issued the cardholder can start building their credit score through timely payments.
While having a high credit score is good, banks look at other factors too before approving one’s credit card application. Some of the common reasons applications are rejected despite a good credit score include:
Too many active loan or credit card accounts
A credit card utilisation ratio of above 30%
Short credit history
Recent issues in repayment of debt (DPDs, late payment, charge-offs, etc.)
Having too much debt
Having too many unsecured loans
There is no minimum CIBIL score requirement to apply for a credit card. A score of 700 and above is generally considered enough, while 750 and above have good chances of approval.
It is not impossible to get a credit card if your credit score is less than 700, however, you may have to pay higher fees and interest rates.
Alternatively, you can apply for a secured credit card and use it to rebuild your credit score.
Yes, you can get a credit card with a 650 CIBIL score. However, you have a comparatively lower chance of getting your application approved as your score is below 700.
A credit score of 900 is technically possible but extremely rare. A score of above 760 is considered excellent enough for most credit products.
A credit score of 300 to 550 is considered bad. At this range, you need to take measures to improve your score.
No, a bad credit score is not permanent. Credit scores can be rebuilt by paying EMIs and credit card dues in time and in full.
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