What is CIBIL Score for Credit Cards and How to Improve it?

byDilip PrasadDecember 27, 2024
Top Reasons For Low CIBIL Score _ How To Improve It

When it comes to managing your finances and applying for credit cards, your CIBIL score plays a crucial role. It’s not just a number; it’s a reflection of your creditworthiness and tells lenders how reliable you are when it comes to repaying borrowed money. The CIBIL score required for credit card approval varies depending on the type of card and lender policies.

Table of Contents Hide
  1. What is a Good CIBIL Score for a Credit Card?
  2. What is the Minimum CIBIL Score For Credit Cards?
  3. How to Improve Your CIBIL Score: Most Relevant Tips

But how exactly is your CIBIL score linked to credit cards? And what can you do to improve it?

In this blog, we’ll break down what the CIBIL score required for credit card approval typically is, how it affects your credit card applications, and, most importantly, the steps you can take to boost your score and expand your financial opportunities.

What is a Good CIBIL Score for a Credit Card?

A good CIBIL score for a credit card typically ranges between 700 and 900. This score indicates that you have a strong credit history and are likely to be a responsible borrower. Here’s a quick breakdown of what different score ranges mean:

  • 750–900 (Excellent): You’re highly likely to get approved for premium credit cards with better perks and lower interest rates.
  • 700–749 (Good): You can qualify for most credit cards, though premium card approvals may depend on other factors like income.
  • 650–699 (Average): Approval chances are lower, and the credit card options may have higher interest rates or fewer benefits.
  • Below 650 (Poor): It’s challenging to get approved for a credit card. If your score is in this range, consider applying for a low CIBIL score credit card to start rebuilding your credit profile.

What is the Minimum CIBIL Score For Credit Cards?

The minimum CIBIL score for credit card eligibility typically ranges from 650 to 700.  While each lender has its own approval criteria, most banks and financial institutions prefer applicants with a score of at least 700 for unsecured credit cards.

However, if your score is below this threshold, you may still qualify for:

  • Secured credit cards backed by a fixed deposit.
  • Beginner credit cards with limited features.

Maintaining a higher score (750 or above) increases your chances of approval and opens the door to better credit card options with higher limits, lower interest rates, and exclusive perks.

How to Improve Your CIBIL Score: Most Relevant Tips

Improving your CIBIL score is essential for better financial health and can make it easier to secure loans or a credit card without CIBIL score restrictions. Here are some effective tips to boost your CIBIL score:

  1. Always pay your bills by the due date. Timely payments are the most critical factor in improving your credit score.
  2. Keep your credit card usage below 30% of your available limit to demonstrate responsible financial behavior.
  3. Multiple loan or credit card inquiries in a short span can lower your score. Apply only when necessary.
  4. Settle any overdue amounts to avoid negative remarks on your credit report.
  5. Have a balanced mix of secured (e.g., home loans) and unsecured loans (e.g., personal loans) to build a stable credit profile.
  6. Check your report for errors or inaccuracies, such as incorrectly reported late payments, and get them corrected immediately.
  7. Older accounts contribute to a longer credit history, which positively affects your score.
  8. If your score is low, consider a secured credit card (linked to a fixed deposit) to rebuild your credit history responsibly.
  9. Being a guarantor or co-signer for someone else’s loan can impact your score if they default on payments.
  10. Improving your credit score takes time. Consistent good financial habits will show results over the long term.

Your CIBIL score is a critical factor when it comes to applying for credit cards. Understanding what it means and how to improve it can help you secure the best offers, higher credit limits, and lower interest rates. While a good score can open many doors, sometimes other factors such as income and existing debt may influence approval. Regardless, by following the right steps to improve your score, you can increase your chances of getting approved for a credit card that suits your needs and lifestyle.

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FAQs

Can I get a credit card with a low CIBIL score?

It is more difficult to obtain a regular credit card with a low CIBIL score; however, it is not impossible. Banks charge higher interest rates on credit cards obtained by applicants with a low CIBIL score.

Can I get a credit card with a low CIBIL score?

Yes, it’s possible to get a credit card for low CIBIL score, but the options may be limited. You may need to apply for low CIBIL score credit cards, such as secured cards or credit cards for beginners, which may come with higher interest rates or lower limits.

What is the minimum CIBIL score for credit card?

The minimum CIBIL score for credit card approval typically ranges from 650 to 700. A score below this may result in higher interest rates or the need to apply for secured credit cards.

Can I apply for a credit card without a CIBIL score?

Yes, you can apply for a credit card without CIBIL score by opting for secured cards, add-on cards, or cards specifically designed for people without a credit history.

What is the difference between a CIBIL-based credit card and others?

A CIBIL based credit card uses your CIBIL score to assess creditworthiness. Lenders approve you based on your score, while credit cards without CIBIL score rely on other factors like income or a fixed deposit.

Is 720 a good CIBIL score for credit cards?

Yes, a 720 CIBIL score is considered good for credit cards. It increases your chances of getting approved for most credit cards, though the best offers, such as premium cards with higher limits and better rewards, may still require a higher score.

Is 700 a bad CIBIL score?

No, a 700 CIBIL score is not bad. It is considered a good score and gives you a solid chance of getting approved for most credit cards and loans with reasonable terms. However, some premium cards may require a higher score.

Can I buy a CIBIL score?

No, you cannot buy a CIBIL score. However, you can request a copy of your CIBIL report from CIBIL’s official website for a small fee. It’s important to review your report regularly to ensure accuracy.

How rare is a 750 credit score?

A 750 CIBIL score is considered excellent and not very rare. Many individuals can achieve this score with responsible credit management, such as making timely payments and maintaining low credit utilization. However, it still represents a strong financial position.

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