One of the most important criteria credit card issuers consider is your CIBIL score. It is a three-digit score between 300 and 900 that determines your creditworthiness. Your credit card application may be approved or rejected based on this. Therefore, it is important to understand the CIBIL score for a credit card before applying for one.

New Delhi: The number of people using credit cards has increased significantly over the past decade. From just 2 crores in 2011, the number of credit card users increased to 10 crores in 2024. While the number of credit cards issued has increased, the eligibility criteria remain intact. One of the most important criteria credit card issuers consider is your CIBIL score. It is a three-digit score between 300 and 900 that determines your creditworthiness. Your credit card application may be approved or rejected based on this. Therefore, it is important to understand the CIBIL score for a credit card before applying for one.

Importance of CIBIL Score for a Credit Card Approval

Credit cards are generally unsecured, and no collateral is collected against them. This makes credit card issuing risky for banks and other financial institutions. Therefore, your CIBIL score is required as it represents your credit history. It allows issuers to assess the risks of issuing you an unsecured credit card. CIBIL score can be classified into the following four ranges:

A CIBIL score with an excellent rating increases your chances of getting a credit card easily with a higher credit limit. A higher score indicates that you have been diligent with repaying past loans. This makes you a low-risk borrower. On the other hand, having a low score can reduce the chances of credit card approval.

Some banks and financial institutions also offer better rewards and benefits to individuals with high CIBIL scores. A consistent, healthy credit history can enable you to get more credit cards and loans.

Minimum CIBIL Score Required to Get a Credit Card

There is no minimum CIBIL score for a credit card because every issuer can have different eligibility criteria. However, a score above 750 is generally considered good enough to get a credit card on better terms, like lower interest rates and higher credit limits. An individual with a score between 650 and 749 can also be approved for a credit card. On the other hand, those with a score below 650 can find it challenging to get approved for a credit card. Even if they get approved, they might have to pay a higher interest rate.

The type of credit card can also influence the minimum CIBIL score required. For instance, getting approved for platinum cards usually requires a higher CIBIL score than standard cards. Some banks and financial institutions may also consider your income level. Higher-income can indicate better repayment ability, which can offset a lower score.

How to Check Your CIBIL Score

You should know how to check your CIBIL score before applying for a credit card to ensure higher chances of approval. You can visit the official TransUnion CIBIL website or a CIBIL-authorised partner’s website to check your CIBIL score.

1. Register or login to the official CIBIL website
2. Verify your identity based on the verification methods made available
3. Login again and click on the ‘Check your CIBIL Score’ button

The steps to check your CIBIL score may vary based on your selected website. However, the process usually includes registration and verification before you can get your credit report.

How to Improve Your CIBIL Score

Here are some of the steps you can take to improve your CIBIL score:

Timely Repayments

One of the most important factors influencing your CIBIL score is your payment history. Ensure you pay all the credit card bills, loan EMIs, energy bills, etc., on time. If you get a default for not paying on time, it can significantly lower your CIBIL score.

Reduce Your Credit Utilisation

Credit utilisation refers to how much percentage of the credit limit you are using. Using only 30% of your credit limit is a good practice as it represents that you are managing your credit responsibly.

One way to ensure minimal credit utilisation is to have multiple credit cards. However, applying for multiple credit cards simultaneously or within a short time frame can negatively impact your credit score. You should also reduce any outstanding debt, which can impact your credit utilisation ratio.

Maintain a Healthy Credit Mix

A healthy credit mix means you should have both secured and unsecured loans. This shows that you can efficiently manage multiple credit accounts.

Review Your Credit Report

A credit report can have a lot of information besides the CIBIL score. It also includes a detailed report of:

• Your credit accounts
• Payment history
• Public records (information like bankruptcies, foreclosures, etc.)
• Credit Inquiries

Knowing all this information and how it affects your CIBIL can help you improve your credit score. You can also determine and report any errors or inaccuracies in your credit report by reviewing it regularly.

Consider Consolidation Loans When Required

Suppose you have taken multiple loans against your credit cards at high interest rates. In that case, it is best to opt for a consolidation loan. A debt consolidation loan lets you combine all your existing debts into a single loan. Lenders usually offer this new loan at a reduced interest rate. This can help you make debt management more manageable and affordable so that you can pay off the debt as quickly as possible.

Always Negotiate Interest Rates

Always try to negotiate for a lower interest rate when applying for a loan, be it against your credit card or some collateral. If the interest rate on the principal amount is low, you can clear the debt quickly. This will show you have a good repayment ability and improve your CIBIL score.

How to Get a Credit Card With Low CIBIL Score

While getting a credit card with a low CIBIL score can be challenging, there are other ways you can try. Here are some ways to get a credit card with a low CIBIL score:

Get a Secured Credit Card

One thing that you can do is apply for a secured credit card. Unlike unsecured credit cards, secured credit cards are issued against fixed deposits.

Since the fixed deposit will be collateral, the risk the issuer takes will be reduced. When opting for a secured credit card, the limit on your card will usually be around 80%-90% of the fixed deposit. Although the limit is often lower than the fixed deposit amount, the benefit is that you can use it to improve your CIBIL score. Efficiently managing your secured credit card can improve your CIBIL score over the long run and make you eligible for an unsecured credit card.

Opt for a Credit Card From Your Bank

When you don’t have a credit history, your CIBIL score is likely to be low. Some issuers may reject your credit card application if you don’t have a credit history. In this case, one option that you have is to opt for a credit card from a bank with which you have a savings or salary account. A bank will be more inclined to give you a credit card even with a low CIBIL score if you have a long-standing relationship with it. They can also access your financial history, like account balances, salary credits, transactions, etc., and choose to give you a credit card.

Show Good Income Levels

If you have a good and stable income history, showing this proof can improve your chances of getting a credit card. You can show proof of income, like salary slips, bank statements, tax return receipts, etc. If you have additional income sources, like rent, freelance income, or investments, be prepared to show proof.

Conclusion

Understanding the minimum CIBIL score for a credit card approval can help you prepare before applying. It can also encourage you to improve your CIBIL score if it is low. While individuals with higher CIBIL scores can easily get credit card approval, those with lower scores also have options. Compare different issuers and check their eligibility criteria to find and select the one that matches your needs.

Frequently Asked Questions

1. Can my application get rejected despite having a good CIBIL score?

Yes, a good CIBIL score may sometimes not be enough to get a credit card. For instance, the issuer may decline your application if you have a high existing EMI to NMI (Net Monthly Income) ratio. Too much debt, a higher credit utilisation ratio, or a short credit history are some other factors that can get your credit card application rejected despite having a good CIBIL score.

1. Can I get a credit card if I don’t have a credit history?

You can get a secured credit card without a credit history. Alternatively, you can apply for a credit card from a bank with whom you have a long relationship through a savings or salary account.

1. Does having multiple credit cards help improve your CIBIL score?

Having multiple credit cards can help improve or worsen your CIBIL score based on how you use them. If you use them wisely, they can help manage your credit utilisation ratio. On the other hand, if you use all of them to the maximum limit, they can significantly reduce your CIBIL score.

1. Can I get a credit card with a score of 650?

Although it can be challenging, you can get a credit card with a CIBIL score of 650. However, the terms may not be favourable.