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

byPriyanka JuyalLast Updated: March 29, 2024
What Is CIBIL Score For Credit Cards And How To Improve It

“The value of credit card transactions is expected to reach INR 51.72 Trn by 2027, growing at a CAGR of 39.22% from 2022-2027. The volume of credit card transactions is expected to grow at a CAGR of ~26.43% during the same period.”

Source: MarketResearch.com

The growth of credit cards in the Indian market emphasizes their importance. As the use of credit cards becomes more widespread, it’s crucial to understand the significance of a good CIBIL score for getting a credit card, its advantages, and whether you can obtain a credit card with a low CIBIL score.

What is a Good CIBIL Score for a Credit Card?

A CIBIL score is a three-digit number that indicates an individual’s creditworthiness. It ranges from 300 to 900, and a score of 750 or above is considered good for obtaining a credit card. This means that the individual has a good credit history and is likely to be approved for a credit card. However, credit card issuers may have their own minimum CIBIL score requirements, so it’s advisable to check with the issuer before applying for a credit card.

The table below shows the different credit score ranges and their implications-

What are the Benefits of a Good CIBIL Score for a Credit Card?

Having a good CIBIL score offers numerous benefits to a credit card applicant. Some of these advantages include:

  • Higher chances of being approved for a credit card
  • Access to credit cards with better interest rates and rewards programs
  • The ability to negotiate lower interest rates and fees with the credit card issuer
  • The ability to easily obtain other forms of credit, such as loans and mortgages
  • A good CIBIL score can also improve an individual’s overall financial reputation and credibility.
  • An applicant with a high CIBIL score is given preference over someone with a low CIBIL score

Credit Cards For People With Low CIBIL Score

What should you do if your CIBIL score is low?

Let’s get this straight!

If your CIBIL score is low, it may indicate that you have a poor credit repayment history and a casual attitude toward credit. As a result, banks may be reluctant to approve you for a credit card. However, in some cases, such as medical emergencies, job loss, or financial damage, a low CIBIL score may be caused by circumstances beyond your control. In these situations, some banks may offer you a secured credit card. This type of credit card requires you to provide collateral, such as a deposit, to secure the credit line. This can help you improve your CIBIL score and eventually qualify for a regular credit card.

  • Secured credit cards are backed by a security deposit that the applicant provides. This deposit acts as collateral, which makes it easier for people with low CIBIL scores to be approved for a credit card. In the event of missed or late payments, the bank can use the security deposit to cover the amount owed. These types of credit cards are often available to low-wage professionals and do not always require proof of income. Because the risk of nonpayment is reduced, banks are more likely to approve applications for secured credit cards.
  • Another option for those with low CIBIL scores is to apply for a credit card from a lenient issuer. These institutions may be more willing to approve applications from individuals with lower credit scores. Research and compare different options to find a suitable issuer, and then apply for a credit card.

“Also Read: How to get a credit card without income

It’s also a good idea to take steps to improve your CIBIL score. This can include paying your bills on time, reducing your credit card balances, and avoiding applying for new credit too frequently. By improving your CIBIL score, you may be more likely to be approved for a credit card in the future.


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.

How to get a 900 CIBIL score for a credit card?

A few things must be done in order to achieve an excellent credit score: Timely repayment of credit amount Resisting oneself from making hard inquiries Using credit utilization ratio responsibly

How to maintain a good Credit score?

To maintain a good credit score, one should adhere to the following practices: Pay off your debts on time Never postpone any credit card payment Maintain an error-free credit report Try not to spend more than 30% of your credit card limit Do not make hard inquiries within shorter time periods Ensure not to leave any outstanding amount behind Most importantly, calculate the difference between how much you require and how much you can handle

What are the factors that affect the CIBIL score?

The following are a few common factors that have a negative impact on the CIBIL score: Poor credit history Delayed payments Maintain an error-free credit report Maximum use of credit utilization ratio Multiple hard inquiries within a given time period Rejection of loan or credit card applications Mismanagement between secured and unsecured loans

Can I get credit card if my CIBIL score is low?

Banks typically only issue credit cards to applicants with CIBIL scores of 700 to 750 or higher. There is no absolute rule, though, as banks and other financial institutions also give credit cards to those with low credit score.

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