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How to apply for a credit card if your CIBIL is low
A poor credit score doesn’t automatically mean you can’t get a credit card — it just means you’ll need to take a more strategic approach.
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How a low CIBIL score affects approval
Indian banks commonly insist on a CIBIL rating of 750 and above to approve unsecured credit cards. If your score is below 650, you are a high-risk customer and not much will be available for you. Lenders will reject your application or offer cards on stricter terms, higher fees, or lower limits. Being aware of this puts you on guard and you can now make realistic demands before approaching.
Indian banks commonly insist on a CIBIL rating of 750 and above to approve unsecured credit cards. If your score is below 650, you are a high-risk customer and not much will be available for you. Lenders will reject your application or offer cards on stricter terms, higher fees, or lower limits. Being aware of this puts you on guard and you can now make realistic demands before approaching.
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Start with a secured credit card
The simplest method of getting approved despite a low score is by applying for a secured credit card, which is granted against a fixed deposit (FD) in your name. Banks such as SBI, ICICI, and Axis provide such cards with limits from 75% to 90% of the FD value. Since the risk for the bank is insured by your deposit, it is less difficult to get approved, and making payments on time on this card can help enhance your score gradually.
The simplest method of getting approved despite a low score is by applying for a secured credit card, which is granted against a fixed deposit (FD) in your name. Banks such as SBI, ICICI, and Axis provide such cards with limits from 75% to 90% of the FD value. Since the risk for the bank is insured by your deposit, it is less difficult to get approved, and making payments on time on this card can help enhance your score gradually.
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Choose cards for low-credit borrowers
There are beginner credit cards in a few fintechs and small banks that don't require a high CIBIL score. They have lower credit limits and may have joining or annual charges. Some include retail chain co-branded cards or online-only banks. While they may have no premium features, you can utilize them to build your credit if used responsibly.
There are beginner credit cards in a few fintechs and small banks that don't require a high CIBIL score. They have lower credit limits and may have joining or annual charges. Some include retail chain co-branded cards or online-only banks. While they may have no premium features, you can utilize them to build your credit if used responsibly.
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Incur chances of approval before applying
Even if you score poorly, you can improve your chances by paying off pending dues, settling overdue EMIs, and not applying for numerous loans or credit cards at the same time. Too many applications are looked at as credit hunger, and your profile will get hurt further. Giving a gap of three to six months after you have washed away your payment history is a wonder-doer.
Even if you score poorly, you can improve your chances by paying off pending dues, settling overdue EMIs, and not applying for numerous loans or credit cards at the same time. Too many applications are looked at as credit hunger, and your profile will get hurt further. Giving a gap of three to six months after you have washed away your payment history is a wonder-doer.
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Give more evidence of income
If your credit score is low but income is stable, banks may still approve your application. Providing salary vouchers, income tax returns, or proof of additional income like rent or freelance income can convince the lender that you will be able to repay.
If your credit score is low but income is stable, banks may still approve your application. Providing salary vouchers, income tax returns, or proof of additional income like rent or freelance income can convince the lender that you will be able to repay.
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Rebuild and upgrade over time
Once you possess a card, secured or low-limit, pay bills on time, keep your credit utilisation below 30%, and avoid due dates. With 9-12 months of credit usage responsibly, your CIBIL score will be good enough so that you qualify for better cards with higher limits and benefits.
Once you possess a card, secured or low-limit, pay bills on time, keep your credit utilisation below 30%, and avoid due dates. With 9-12 months of credit usage responsibly, your CIBIL score will be good enough so that you qualify for better cards with higher limits and benefits.
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