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How to Get the Best Credit Card for a Low CIBIL Score

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CIBIL Score

CIBIL score is a three-digit number anywhere between 300 and 900. This is a quantifiable measure of the creditworthiness of an individual and how strong their financial health is. Derived after considering the credit history of a person, Transunion CIBIL, the organization that computes your data generates a CIBIL report. 

Your credit card issuer checks your CIBIL score to ensure your ability to use your credit card judicially (paying bills on time), in case you need approval for one. Therefore, getting a credit card for a low CIBIL score may be somewhat challenging, but possible. 

The closer your score is to the 900 mark, your chances for getting a credit card improve. An average CIBIL score of 750 is considered to be good, and you should ideally maintain this, or raise it throughout your financial future. A score that is nearer to the 300 mark is perceived as poor. 

Criteria for Credit Card Attainment

Most banks and financial companies request assurances of repayment of loans and bills/fees from new customers. If you are a salaried individual, then this is a guarantee to a credit card issuer that you have the financial strength to repay any credit card bills in a timely manner. 

In case you have a fixed deposit with a bank or finance company, you may get easy approval of a new credit card, as your fixed deposit/interest thereof acts as collateral for repayment of dues.

Such cases ensure easy approval and attainment of a  credit card apply online  and you are set to get your card quickly with minimal documentation. However, a low CIBIL score means your creditworthiness is questionable. Issuers may not approve your credit card application in such cases. However, there are ways to improve/raise a poor CIBIL score and then get a credit card. 

Ways to Get a Credit Card with a Low Score

Replenishing a low CIBIL score can be difficult, but it is possible. Secured credit cards are some of the easiest and best credit cards you can get today. Additionally, these enhance your credit score and increase it. 

It is possible to open a fixed deposit, and even though you may have a low CIBIL score for many reasons, you can raise funds for the purpose of a fixed deposit scheme. A credit card issued against your fixed deposit is a secured card, as it grants the issuer some security against dues that have to be met by you, the credit cardholder. 

A credit card for a low CIBIL score can be obtained in this way. An individual’s CIBIL score may be poor as the individual had defaulted on repayment of a loan in the past, or due to similar circumstances. 

In case individuals have some funds to invest currently, a fixed deposit is an assurance for lenders, offering you a cash limit that may be 50% of the value of your deposit. By using such a card, and wisely paying bills/dues on time, you can build up your credit score. 

Other Ways to Get a Credit Card with a Low CIBIL Score

Naturally, you cannot expect lenders to offer you one of the best credit cards on the market if you have a low CIBIL score. Your best credit card would be any card with which you can start strengthening your financial standing. Here are a few other ways through which you can gain a credit card with a low CIBIL score.

  • Get a prepaid credit card – In case you have a bad credit history, but have some cash on hand to spare, and don’t have a good CIBIL score to get a credit card, you can opt for a prepaid card. Several banks offer cards that let you deposit funds in a savings bank account and let you use a credit card against these. The funds in your account act as collateral for the issuer/lender. 
  • Balance transfer – One reason for not getting a credit card for a low CIBIL score may be because you have accumulated debt on one credit card in the past. A way to get rid of this is to transfer the debt to another card — a balance transfer card. This gives you time to collect funds. One of the best balance transfer credit cards you can get is the Bajaj Finserv RBL Bank credit card. It lets you use up to 80% of your credit limit for the purpose of balance transfers. 
  • Get an add-on card – In case anyone in your family has a credit card with creditworthiness to match, you can opt for an add-on card to build a good CIBIL score. In this way, the primary cardholder’s financial status is indicative of your own, as you are an addition to the same card. 

There’s no reason to shy away from obtaining a credit card if you have a low CIBIL score. Banks offer fixed deposit schemes through which you get secured cards. Alternatively, opt for the Bajaj Finserv RBL Bank SuperCard, giving you multi-purpose use, along with many benefits and features. It is a convenient EMI card, plus a loan card. Additionally, you also get an ATM withdrawal facility with free 50-day cash withdrawals.

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