CIBIL Score for Credit Card

The minimum CIBIL scores for credit cards differ not only from bank to bank or NBFC to NBFC, it also differs based on the standard of the card itself. For instance, a premium credit card at XYZ bank can have a higher minimum credit score requirement, compared to their entry level cards.

A CIBIL score of 750 or above is considered excellent and is usually sufficient to get your credit card application approved. Furthermore, the closer your score is to the 900 mark, the better your chances of approval. Notably, card issuers also consider other details on your CIBIL credit report, such as how many credit cards you already have, before giving approval. These parameters further explain your credibility and can influence the minimum credit score for credit cards.

Some other factors that influence the required minimum credit score for credit cards in India are payment delays, your debt-to-income ratio, etc. Depending upon these other factors and your relationship with the card issuer, a CIBIL score of less than 750 can also aid in getting approval for a credit card. However, if your score is less than 700, it may prove difficult to get a credit card.

CIBIL score check for credit cards is crucial for banks and non-banking finance companies (NBFCs) as it helps them control risk. Banks and NBFCs check CIBIL scores to assess an applicant’s financial behaviour and repayment capacity before approving a credit card. As credit cards are unsecured credit products, lenders need to minimise the risk of defaults. A good CIBIL score for credit card application assures them of responsible credit usage and timely payments. 

Below are the reasons why your credit or CIBIL score is one of the primary eligibility criteria 

• Assess Creditworthiness: A high CIBIL score reflects responsible financial behaviour, indicating that applicants are more likely to repay dues on time. For credit cards based on CIBIL score, it helps issuers evaluate the applicant’s creditworthiness before approving a credit card.

• Minimise Risk of Default: As credit cards are unsecured, issuers rely on credit scores to assess the risk of non-payment. A low score may signal a higher likelihood of default, influencing the approval decision.

• Determine Credit Limit and Interest Rate: A strong credit score enables applicants to secure higher credit limits and lower interest rates. Issuers use this information to tailor credit offerings based on the applicant’s financial profile.

• Ensure Responsible Lending: Checking credit scores allows banks and NBFCs to make informed decisions, promoting responsible credit distribution. It ensures credit is extended to individuals who demonstrate financial discipline.

Even with a low CIBIL score, getting a credit card might be possible. Here are some options to get a low CIBIL score credit card:

• Secured Credit Card: One of the simplest ways to get a credit card with a low credit score is through a fixed deposit. The fixed deposit serves as a collateral, against which the credit card is issued and the credit limit is determined by its amount. In case of missed payments, the bank has the right to recover the outstanding amount from the deposit. 

• Student Credit Card: Student credit cards are less common, but some banks offer them. These cards generally come with a low credit limit, aligned with students' financial needs. To get a student credit card, you must fulfil the following criteria:

  1. You should be at least 18 years of age.

  2. There must be a valid Aadhaar, PAN, etc.

  3. A valid proof of income through a part-time job or otherwise, verifiable through an income proof, savings account, etc, might be needed.

  4. It can be secured against an FD.
      

• Add-on Credit Card: An add-on credit card is linked to a primary cardholder’s account. Those with an existing credit card can apply for an add-on card for a family member, such as a parent, spouse, or sibling. Banks typically do not check the credit score of the added member.

To get an optimal credit score required for credit cards, you must foster prudent financial habits and discipline. Here are some key practices to help increase it:

1. Prioritize Timely Repayments

Your payment history is the single most influential factor in your CIBIL score. Even one late payment can cause a significant dip. To ensure you never miss a deadline, utilize banking apps to set up auto-debit instructions or calendar reminders for your credit card bills and loan installments.

2. Maintain a Healthy Credit Mix

Lenders look favorably upon a diversified credit profile. Successfully managing a combination of secured credit (like a car or home loan) and unsecured credit (like a credit card or personal loan) proves you can handle various types of debt. While you shouldn't take out loans you don't need, balancing your portfolio over time can bolster your score.

3. Be Strategic with EMIs

Converting small, everyday purchases—like clothing or gadgets—into EMIs may seem convenient, but it can lead to "debt clutter." Multiple small EMIs make it easier to lose track of due dates and can negatively impact your debt-to-income ratio. Reserve EMI facilities for high-value essential purchases and always ensure you have a repayment plan in place.

4. Monitor Your Report for Errors

Checking your CIBIL report every few months is vital for maintaining financial hygiene. Regular monitoring allows you to spot inaccuracies, such as wrongly reported defaults or duplicated accounts, which can be disputed and removed. Contrary to popular belief, checking your own score (a soft inquiry) does not lower your credit points.

A deep dive into cibil score required for credit card is incomplete without exploring the steps required to check a CIBIL score. Discussed here are two methods of checking your CIBIL score.

Check CIBIL score through the official CIBIL website

You can check your CIBIL score directly from the official CIBIL website. Listed here are the steps check the same:

1. Visit the CIBIL website

2. Enter the required information and click ‘Continue’

3. Provide additional details, such as your PAN number

4. Respond to queries regarding instant loans and credit cards

5. Log in using the provided password

6. Once logged in, access your CIBIL score from the dashboard

Check CIBIL score through Bajaj Markets

Follow the steps below to check your CIBIL score for free on Bajaj Markets.

1. Visit the Bajaj Markets website and click “CIBIL Score” option from the blue menu bar on top.

2. If you are a first time user

   • Input your mobile number, given your acceptance to the terms and conditions, and select “Proceed with OTP”.

   • You will get an OTP to the provided mobile number, enter the same.

   • Based on your employment type, that is salaried or self-employed, enter details as required. Some fields are full name, PAN number, personal email ID, etc.

   • Click “Get Score” to view your CIBIL score.

3. If you are an existing user

   • Enter your mobile number, given your acceptance to the terms and conditions, and select “Proceed with OTP”.

   • Type in the OTP that is sent to your mobile number.

   • Your score will appear.