Credit Card Without CIBIL Score

The CIBIL score is one of the most important criteria that banks and financial institutions consider before approving or rejecting a credit card application. However, it is now possible to obtain a credit card without a CIBIL score too. If you do not have a credit history or a credit score yet, there are many ways in which you can get a credit card for your regular usage. Once you do this, you need to ensure that you pay your credit card bills on time. 

 

This way, your CIBIL score will be high, making it easier for you to obtain other credit facilities in the future. 

How to Get a Credit Card without a CIBIL Score?

If you have never availed of any credit facilities before, you may not have a credit score. And without a CIBIL score, credit cards may seem like a distant dream. But the good news is that there are many different ways to get a credit card without a CIBIL score. Here are some things you can do to obtain a credit card in your name even if you do not have a CIBIL score yet. 

• Apply for a Secured Credit Card

A secured credit card is issued against a fixed deposit (FD) account opened with a bank or a financial institution. If you have no CIBIL score, credit cards of this kind are easy to obtain if you open a fixed deposit account with the credit card issuer. The credit limit for the card will generally be a percentage of the total amount deposited in the FD account. 

 

Once you get a secured credit card, you can build your CIBIL score by promptly repaying your credit card dues. 

• Get an Add-On Credit Card

An add-on credit card is issued as a supplementary card to a primary credit card. The primary credit card holder will typically be a member in your family who has a good CIBIL score. The add-on credit card will have the same features and benefits of the primary card. You can use this kind of credit card to build your credit score over time. Then, you can apply for a regular credit card if you have a CIBIL score that is high enough. 

• Obtain a Credit Card Against Your Savings Account

Some leading banks in the country also offer credit cards without a CIBIL score against the card holder’s savings account. So, if you have a savings account with a bank but find yourself without a CIBIL score, credit cards of this kind may be suitable for you. You can check if you are eligible for this type of credit card. Typically, you will be required to maintain a specified balance in your savings account to avail of a credit card against the account. 

• Choose a Prepaid Credit Card

A prepaid credit card is also easy to obtain if you do not have a CIBIL score. You need to add some money to the credit card before you use it. Thereafter, you can spend the balance in your credit card to pay for purchases and any other bills that need to be settled. This is an effective alternative to obtain a credit card without a CIBIL score. You can then build the score from scratch in order to become eligible for regular credit cards. 

Why do Banks and Financial Institutions Check my CIBIL Score before Issuing a Credit Card?

Credit cards are a type of unsecured credit, wherein the card issuer has no collateral to rely on in case of a default. So, if a credit card holder fails to repay their dues, the credit card issuer remains unprotected from the resulting loss. To minimise the risks associated with such defaults, banks and financial institutions will check your CIBIL score before they approve your application for a credit card. 

 

The CIBIL score is a number ranging from 300 to 900, calculated by credit rating agency TransUnion CIBIL. This score indicates how creditworthy you may be. The higher your CIBIL score, the more reliable you are as a borrower. So, using the CIBIL score, credit card issuers can assess the likelihood of a card holder defaulting on the payment. This helps them mitigate the risk associated with the credit facility. 

 

That said, even if you have no CIBIL score, credit cards may be issued by some banks and financial institutions. These credit cards may be of different types, such as secured credit cards, prepaid credit cards or add-on credit cards. 

1. Minimum CIBIL Score Required for a Regular Credit Card

Broadly, the higher your CIBIL score, the better it is for you if you are applying for a credit card. More specifically, most banks and financial institutions issuing credit cards may approve applications of individuals with a CIBIL score of 700 or higher. So, if you are applying for a regular credit card, ensure that your CIBIL score is in this range to improve the chances of having your credit card application approved. 

 

However, some banks and financial institutions also offer certain types of credit cards to people with lower or no credit scores as well. So, you can still get a secured or a prepaid credit card without a CIBIL score.