Are you one of those frequently wondering if there's a Credit Card for low CIBIL Score? And if there is, which credit card reigns supreme for individuals with a not-so-perfect CIBIL score?
A credit card can be a great tool for building your credit and managing your finances. However, it can be difficult for you to get credit card for low CIBIL Score.
A CIBIL score is a three-digit number that represents your creditworthiness. It is based on your credit history, which includes information such as your payment history, credit utilization ratio, and length of credit history. A good CIBIL score is important because it makes it easier to get approved for loans and credit cards, and it can also help you qualify for lower interest rates.
Additionally, you can try to get a secured credit card. A secured credit card is a type of credit card that requires you to deposit a security deposit, which is typically equal to your credit limit.
If you are unable to improve your CIBIL score, there are still a few credit cards that you may be able to qualify for. The credit card for low CIBIL Score is typically designed for people with bad credit or no credit history. However, it is important to note that credit card for low CIBIL score may have higher interest rates and fees than credit cards for people with good credit scores.
In this blog post, we will discuss the best credit card for low CIBIL score. We will also discuss some tips for improving your CIBIL score.
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Difference Between Credit Score and CIBIL Score
Often, I come across the common query on credit score vs CIBIL score:
- What difference between credit score and CIBIL score?
- Is there even a distinction, or is credit or CIBIL score same?
Let's clear the air and delve into the fundamental disparities between these two financial metrics.
Credit score and CIBIL score are two terms that are often used interchangeably, but there is a subtle difference between credit score and CIBIL score.
The Credit score is a three-digit number that represents your creditworthiness. It is based on your credit history, which includes information such as your payment history, credit utilization ratio, and length of credit history. A credit score is calculated by one of the four major credit bureaus: Equifax, Experian, TransUnion, and CIBIL.
CIBIL score is a specific type of credit score that is calculated by the Credit Information Bureau of India Limited (CIBIL). CIBIL is one of the four major credit bureaus in India, and it is the most widely used credit bureau in the country.
The main difference between credit score and CIBIL score is that a credit score can be calculated by any of the four major credit bureaus, while a CIBIL score is specifically calculated by CIBIL.
Another difference between credit score and CIBIL score is that a credit score is a general measure of your creditworthiness, while a CIBIL score is a more specific measure of your creditworthiness in India.
This is because CIBIL is the most widely used credit bureau in India, and lenders in India are more likely to use a CIBIL score to assess your creditworthiness.
Also, check these out:
- 5 Ways To Improve Your CIBIL Score: GroMo
- Are You Aware Of The Benefits That Come Along With A High CIBIL Score?
- Consequences Of Having A Low CIBIL Score
- 7 Guaranteed Ways To Improve Your CIBIL Score
Minimum CIBIL Score For Credit Card
Many of our readers are curious about a pressing question: how much cibil score required for credit card?
Let's delve into the specifics of credit card eligibility based on your CIBIL score.
The minimum cibil score required for credit card varies depending on the bank or financial institution. However, in general, cibil score required for credit card is around 650 or higher is considered to be good for a credit card.
If you have a CIBIL score below 650, you may still be able to get a credit card, but you may have to pay a higher interest rate or annual fee. You may also be limited in the type of credit card you can get.
Here are some tips for getting a credit card for low CIBIL score:
- Look for credit cards that are specifically designed for people with bad credit or no credit history.
- Apply for a secured credit card
- Get a credit builder loan
- Apply for a credit card from a bank or financial institution that caters to people with bad credit
- Apply for a secured credit card: A secured credit card requires you to deposit a security deposit, which is typically equal to your credit limit.
- Ask a friend or family member with good credit to cosign on a credit card for you.
- Improve your CIBIL score by paying your bills on time and in full, keeping your credit utilization ratio low, and avoiding opening too many new credit accounts in a short period of time.
If you cannot get approved for a credit card, you may want to consider getting a debit card instead. A debit card is linked to your checking account, so you can only spend the money that you have in your account. This can be a good way to build your credit history and learn how to manage your finances responsibly.
Once you have improved your CIBIL score, you may be able to upgrade to a credit card with better terms and conditions.
Best Credit Card Without CIBIL Score
For individuals with a less-than-ideal or non-existent CIBIL score, several options are available in Credit card without CIBIL Score segment :
Secured Credit Cards: These cards are secured by a refundable security deposit, usually equal to your credit limit. This arrangement reduces the lender's risk, making approval more likely.
Prepaid Credit Cards: Functioning similar to debit cards, prepaid credit cards aren't linked to your bank account. You load funds onto the card before use, making them a suitable choice for credit-building without incurring debt.
Credit Cards for Poor Credit: Some banks and financial institutions extend credit card offers to those with poor credit histories. These cards often come with higher interest rates and fees compared to cards for individuals with strong credit scores. Nonetheless, they serve as a valuable option for those aiming to reconstruct their credit profiles.
Here are some specific examples of credit card without CIBIL Score:
1. SBI Advantage Plus Credit Card
Introducing the SBI Advantage Plus Credit Card, a globally accepted credit card secured against fixed deposits. There is no requirement for a specific CIBIL score for sbi credit card mentioned above. Unlock up to 85% of your total fixed deposit as your credit limit.
Key Highlights of the SBI Advantage Plus:
- Enjoy convenient cash withdrawals from ATMs worldwide.
- Extend the benefits to your family by applying for add-on cards for your spouse, siblings, children, or parents.
- Simplify your repayments by converting your SBI Advantage Plus Credit Card transactions into EMIs through Flexipay.
Fees and Charges:
- Annual renewal fee: Rs. 500 per annum
- Add-on Card Charges: None
- Interest Charges: 2.25% per month or 27% per annum
- Late Payment Charges: Varied, up to Rs. 750 depending on the spending amount.
Experience enhanced financial flexibility and convenience with the SBI Advantage Plus Credit Card, as it does not necessitate a specific CIBIL score for SBI credit card approval.
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2. HDFC Money Back Credit Card
Introducing the HDFC Money Back Credit Card, a card that can be obtained based on your salary. Its accessibility makes it an appealing choice for individuals working on enhancing their creditworthiness. These HDFC credit card CIBIL score requirements are none. Below, you'll find an overview of the card's features and associated details.
Key Highlights of the HDFC Money Back Card:
- Earn 2 reward points for every Rs.150 spent, adding value to your transactions.
- Seamlessly convert your expenditures into EMIs with the SmartEMI option.
- Rest easy with no liability for lost cards once reported.
Fees and Charges:
- Joining Fee: Rs. 500
- Annual renewal fee: Rs. 500
- Add-on Card Charges: None
- Minimum Amount Due: 5% of the total outstanding amount
- Late Payment Fee: Varies, with a maximum of Rs. 750
- Over Limit Charge: Minimum of Rs. 500
Also, check these out:
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- Lowest Interest Rate Personal Loan: Top 5 Banks
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3. Axis Bank Insta Easy Credit Card
Introducing the Axis Bank Insta Easy Credit Card, a versatile option for individuals looking to boost their credit scores, available against your salary or fixed deposit. This card offers a streamlined application process with minimal documentation.
Highlighted Features of the Axis Bank Insta Easy Credit Card:
- Obtain a credit limit of up to 80% of your Fixed Deposit amount, optimizing your financial flexibility.
- Enjoy a 1% waiver on fuel surcharge for all fuel transactions, making every journey more cost-effective.
- Access cash withdrawals of up to 100% of your credit limit, ensuring you're never short on cash.
- Experience the benefits without incurring any joining fee or annual charges.
Fees and Charges:
- Joining Fee: None
- Annual renewal fee: None
- Additional Card Charges: None
- Interest Rate: 2.50% per month or 34.49% per annum
- Late Payment Fee: Up to Rs. 700
Unlock the advantages of the Axis Bank Insta Easy Credit Card, designed for simplicity and convenience while you work on improving your credit profile.
How to Increase CIBIL Score Without Credit Card
There are a few ways to increase CIBIL score without credit card:
- Pay your bills on time and in full: This is the most important factor in determining your CIBIL score. Make sure to pay your rent, utilities, and other bills on time each month.
- Get a secured loan: A secured loan is a type of loan that requires you to put down collateral, such as a savings deposit or a car. This type of loan is a good option for people with bad or no credit history.
- Become an authorized user on someone else's credit card: If you are added as an authorized user on someone else's credit card, you will be able to build your credit history based on their payment history.
- Get a credit builder loan: A credit builder loan is a type of loan that is specifically designed to help people build their credit history. These loans are typically small loans, and the borrower is required to make monthly payments. The lender will report the borrower's payment history to the credit bureaus, which can help the borrower improve their credit score.
By following these tips, you can increase CIBIL score without credit card. This will make it easier to get approved for loans and credit cards in the future, and you may also qualify for lower interest rates.
- To increase your CIBIL score without credit card: Pay bills on time, reduce credit card balances, limit new credit applications, and check your report for errors.
- The SBI Advantage Plus Credit Card, HDFC Money Back Credit Card, and Axis Bank Insta Easy Credit Card are the best credit card without CIBIL score.
- The minimum CIBIL score for credit card typically ranges from 650 to 750, but specific requirements vary by card issuer.
- A Credit score is a general term for various credit scoring models, while CIBIL score specifically refers to the score generated by the CIBIL.