The words’ CIBIL score ‘often refers to a three-digit score between 300 and 900 and are used synonymously with a credit score which helps you to get a credit card. CIBIL stands for the Indian company, TransUnion CIBIL Limited, which has access to your credit information. All financial transactions where you have borrowed or repaid money refer to this information.
Not only does CIBIL have access to some 600 million people’s credit information, but it also has 2,400 members, including lenders of all varieties. Since CIBIL is one of India’s most trusted credit information companies, its rating is known as your credit score.
What is the Minimum CIBIL Score Required to Get a Credit Card?
For most credit cards, the appropriate or minimum CIBIL score is 750, which is required. At some of the top companies, applicants with a score below 750 may not get approval for a card. Most banks, however, also provide credit cards to those who do not have a credit history or a score lower than 750. The fact remains, however, that those with a score of 750 or higher are eligible for much more than those who do not fall into this category.
WHAT BENEFITS DO YOU GET ON A CREDIT CARD WITH GOOD CIBIL SCORE?
For credit cards, the benefits that a good CIBIL score holder gets are:
- Eligible for top credit cards.
- Suitable for a higher credit limit.
- Lower rate of interest on credit cards.
- Easy approval of credit cards.
- More negotiating power on credit card interest rate
MAINTAINING A GOOD CREDIT SCORE
It is necessary to build a credit record in order to maintain a good credit score. To maintain a good score, you can follow these simple steps:
- To rectify it, the first step is to identify the cause of your low score.
- If you do not have a credit card, make sure that you apply to the bank where your salary account is held, as a first-time applicant. A regular source of income is justified by this.
- You could also check if the business in which you work is in the banks’ good books. Your chances of getting a credit card will be increased.
- If your application has been rejected, make sure you apply after a minimum of 3 months, as too many applications will result in multiple rejections at the same time, which will further downgrade your credit score.
- Do not regularly exceed your credit limit. This gives banks a negative feeling about their expenditure habits.
- On-time, pay your full credit card bills. Make sure you don’t miss out on any EMIs or payments.
CREDIT CARDS FOR PEOPLE WITH A LOW CIBIL SCORE
In general, a customer with a low CIBIL score is not issued a credit card that is below 750, because banks do not want to get into bad debts or take the risk of delayed payments. A family emergency that requires extra expenditure and leaves you deprived of funds to make full repayments could be another reason for a low credit score. The CIBIL report will never be generated if you do not have any credit line or have never have availed of any loan or credit card.
Banks offer secured credit cards in cases where you have never held a credit card and your CIBIL report is non-existent. Under the condition that you open up a fixed deposit (FD) with the bank that issues the card, a secured credit card can be used. The reason for such a situation is because the outstanding amount will be deducted from the fixed deposit if the client is unable to pay the credit card bill. Customers can rebuild their credit history and thereby increase their score by making timely and full payments on the card.
WHICH BANKS GIVE YOU CREDIT CARD WITH ZERO CIBIL SCORE?
If you have a salary account with the bank, there are many banks that accept credit card applications from those who have zero CIBIL scores or no credit history however issuing you a credit card is the sole discretion of Bank. Listed below are some of the banks offering this facility.
- HDFC Bank
- ICICI Bank
- Kotak Mahindra Bank
- Axis Bank
- RBL Bank
- Standard Chartered Bank.