How to Get a Credit Card with a Low CIBIL Score

Securing a credit card with a low CIBIL score might feel challenging, but it's far from impossible. A growing number of financial institutions are now offering credit cards tailored to those with limited or less-than-ideal credit histories. These cards provide an opportunity not only to manage your day-to-day spending but also to improve your credit score over time.

The key lies in responsible use. By making timely repayments and keeping your credit utilisation low, you can see gradual improvement in your score. In some cases, you might be required to provide a fixed deposit as collateral, but this can open the door to credit-building opportunities. With consistent, disciplined use, you may eventually qualify for higher credit limits and more favourable card options, turning your financial situation around step by step.

• You can get a credit card with a low CIBIL score

• Secured cards are ideal for poor credit histories

• No fixed minimum score exists, but 750+ is preferred

• Responsible use of credit cards helps rebuild your score

• If rejected, try secured cards and focus on credit repair

• Credit builder cards are designed to improve your score

• Avoid applying for too many cards at once

• A strong bank relationship can help with approval

• Set up payment reminders to avoid missing due dates

Yes, you can get a credit card with a bad CIBIL score, though your options may be limited. Many banks prefer applicants with good credit histories, but some offer cards for those with low scores. A common option is a secured credit card, which requires a fixed deposit as collateral, making it easier for approval despite a poor score.

Another option is a basic or low-limit credit card, typically with higher interest rates. These cards provide an opportunity to rebuild your credit. By making timely payments and keeping credit usage low, you can improve your CIBIL score and, over time, qualify for better cards with higher limits and more favourable terms.

While there is no fixed minimum CIBIL score for obtaining a credit card, most banks prefer a score of 750 or higher for standard, unsecured cards. A score in this range indicates a strong history of timely repayments, making you a low-risk borrower.

If your score is below 650, approval for a regular credit card can be difficult. However, you may still be eligible for a secured credit card, which requires a fixed deposit as collateral. These cards allow you to rebuild your credit by demonstrating responsible use, such as making timely payments and keeping your balance low. Over time, this can help improve your CIBIL score and increase your chances of qualifying for an unsecured card.

To qualify for an instant credit card for a low CIBIL score, lenders assess several factors to ensure you can manage the credit responsibly and meet repayment obligations:

• Age: Applicants must be between 21 and 65 years old

• Income: A steady source of income is required, with a minimum income threshold varying by card type

• Employment: Both salaried employees and self-employed individuals are eligible, provided they meet income and job stability requirements

• Credit Score: A higher credit score (750 or above) improves your chances, though some cards may accept scores below this, especially secured cards

• Residence: Must be a resident of the country where the credit card is being applied for

• Debt-to-Income Ratio: Lenders may assess your existing debt load to ensure you can comfortably manage additional credit

• Documents: Valid identification, proof of address, income proof (e.g., salary slips, tax returns), and bank statements are typically required

• Credit History: A clean credit history is preferred, though some cards cater to those with limited or poor credit history (e.g., secured cards

If you have a low CIBIL score, there are several strategies you can use to increase your chances of qualifying for a credit card:

Secured Credit Card

A secured credit card is backed by a fixed deposit, which acts as collateral for the credit limit. The amount of the deposit typically determines your credit limit, and you can earn interest on the deposit. Using this card responsibly and making timely payments can gradually improve your CIBIL score over time.

Credit Cards Issued by Your Primary Bank

If you have a long-standing relationship with your bank, they may offer you a credit card based on your savings or account history, even if your credit score is low. Having a strong banking history shows trustworthiness, which can improve your chances of approval. This option allows you to access credit without needing to meet standard credit score requirements.

Unsecured Credit Cards

Unsecured credit cards do not require collateral, but they often come with higher interest rates and fees due to the increased risk for the lender. These cards are harder to qualify for with a low CIBIL score, but they are still possible to obtain with responsible use. Timely payments and low credit utilisation can help rebuild your credit, eventually qualifying you for better cards.

If you have a low CIBIL score, several credit card options can help you manage finances and improve your credit score over time:

Secured Credit Cards

Secured credit cards require a fixed deposit as collateral, which acts as your credit limit. These cards are ideal for those looking to rebuild or establish a credit history. Timely payments on secured cards can significantly improve your CIBIL score over time.

Credit Builder Cards

Credit builder cards are specifically designed for individuals with low or poor credit scores. They provide a small credit limit and help improve your score through responsible usage and regular repayments. Using this card responsibly can demonstrate your ability to manage credit, paving the way for better financial options.

Store Credit Cards

Store credit cards, issued by retail brands, have simpler approval processes and are often easier to obtain with a low CIBIL score. These cards are generally limited to purchases at the issuing store, but they provide an opportunity to build credit with manageable spending. Responsible use of store cards can help strengthen your credit profile.

Student Credit Cards

Student credit cards are tailored for individuals with limited or no credit history, often offering lower credit limits and basic features. These cards help students gain experience managing credit while keeping their spending in check. Making timely payments on a student credit card can set the foundation for a strong credit history.

Prepaid Credit Cards

Prepaid credit cards are not true credit cards, as they require you to load funds onto the card before use. While they do not impact your CIBIL score, they are useful for budgeting and avoiding debt. Prepaid cards offer a safe way to manage spending without the risk of overspending.

Getting a credit card with a low CIBIL score can offer several advantages that help you improve your credit and manage your finances more effectively:

• Opportunity to Rebuild Credit: Responsible usage of a credit card can improve your CIBIL score over time, leading to better financial opportunities

• Access to Emergency Funds: Having a credit card provides quick access to funds during emergencies, offering financial flexibility when needed

• Establishing a Credit History: If you have a limited or no credit history, a credit card helps establish a record, which is essential for future financial decisions

• Rewards and Benefits: Some credit cards offer rewards, cashback, or discounts, even for those with low scores, helping you save on everyday purchases

• Increased Credit Limit Over Time: With consistent, responsible use, you may qualify for higher credit limits, improving your financial flexibility and creditworthiness

• Better Financial Management: A credit card can help you manage your finances by keeping track of spending and simplifying bill payments

While obtaining a credit card with a low CIBIL score can help build credit, there are some drawbacks to consider:

• Higher Interest Rates: Credit cards for low CIBIL scores often come with higher interest rates, increasing the cost of borrowing

• Low Credit Limits: These cards typically have lower credit limits, limiting your purchasing power and flexibility

• Higher Fees: You may face higher annual fees, processing charges, or penalties for missed payments, adding extra costs

• Limited Rewards and Benefits: Cards with low CIBIL scores may offer fewer rewards, cashback, or perks compared to those for higher scores

• Increased Risk of Debt: If not used responsibly, a credit card with a low CIBIL score can lead to debt accumulation due to high-interest rates and low limits

Using a credit card with a low CIBIL score responsibly is key to improving your credit and maintaining financial health:

Pay Bills on Time

Always pay your credit card bills on time to avoid late fees and interest charges, which can negatively impact your credit score.

Limit Credit Utilisation

Keep your credit usage under 30% of the total limit to demonstrate responsible management of your credit.

Monitor Your Credit Report

Regularly check your credit report for inaccuracies or fraudulent activity and address any discrepancies promptly.

Stick to Manageable Expenses

Use your credit card for purchases you can easily repay in full each month to build a positive credit history.

Avoid Multiple Credit Applications

Refrain from applying for too many credit cards at once, as multiple hard inquiries can lower your credit score.

Create Payment Alerts

Set up alerts or automatic payments to make sure you never overlook a due date.

Avoid Minimum Payments

Pay more than the minimum to reduce your balance faster and avoid paying high interest.

Request Credit Limit Increases

After demonstrating responsible use, request a higher credit limit to improve your credit score by lowering your credit utilisation ratio.

Improving your CIBIL score is essential to increase your chances of credit card approval and secure better financial opportunities:

Pay Your Bills on Time

Making timely payments on all your bills, including loans and credit cards, is crucial to improving your CIBIL score.

Reduce Outstanding Debt

Focus on paying down existing debt, particularly high-interest loans and credit card balances, to lower your debt-to-income ratio.

Maintain Low Credit Utilisation

Try to use less than 30% of your credit limit to show that you manage credit responsibly.

Avoid Missing Payments

Set up reminders or automatic payments to ensure you never miss a due date, as missed payments negatively affect your score.

Check Your Credit Report Regularly

Review your credit report for errors and dispute any inaccuracies to ensure your score reflects your true creditworthiness.

Limit New Credit Applications

Avoid applying for multiple credit cards or loans in a short period, as frequent hard inquiries can lower your score.

Build a Strong Credit History

Use credit responsibly, even for small purchases, to build a positive history that can boost your CIBIL score over time.