In today’s financial landscape, having a good credit score is essential for availing of loans, credit cards, and other financial products. However, if you have a low CIBIL score, you may feel your options are limited. Thankfully, many banks and financial institutions in India offer credit cards tailored to individuals with low CIBIL scores or no credit history. These cards can be a stepping stone to rebuild your creditworthiness.
In this comprehensive guide, we’ll explore a CIBIL score, how it affects your financial life, the top 10 credit cards for low CIBIL scores in India, and tips to use them effectively.
What is a CIBIL Score?
A CIBIL score is a three-digit number between 300 and 900, representing your creditworthiness. TransUnion CIBIL, one of India’s leading credit bureaus, calculates it. Banks and financial institutions use this score to assess lending risk to a particular individual.
Components of a CIBIL Score
- Payment History (35%): Reflects whether you’ve paid your dues on time. Late payments lower your score.
- Credit Utilization (30%): Indicates the percentage of your credit limit you’re using. Keeping it below 30% is ideal.
- Length of Credit History (15%): Longer credit histories demonstrate financial stability.
- Credit Mix (10%): A healthy balance of secured (home loans) and unsecured (credit cards) loans contributes positively.
- Recent Credit Inquiries (10%): Multiple applications for loans or credit cards within a short time can lower your score.
Why is a CIBIL Score Important?
- Loan Approvals: A higher score improves your chances of loan approval at better interest rates.
- Credit Card Eligibility: Banks are likelier to approve applications with a good CIBIL score.
- Interest Rates: Lower scores often lead to higher interest rates on loans and credit cards.
- Employment Opportunities: Some employers check credit scores for financial or senior positions.
How to Use Credit Cards to Improve Your CIBIL Score
Using a credit card responsibly can help rebuild your CIBIL score. Here’s how:
- Timely Payments: Always pay your credit card bills before the due date. Even partial payments can negatively impact your score.
- Limit Credit Utilization: Avoid using more than 30% of your available credit limit.
- Avoid Frequent Applications: Multiple credit inquiries quickly can lower your score.
- Regular Usage: Use your credit card for small, manageable expenses and pay them off promptly.
- Monitor Your Credit Report: Regularly check your credit report to identify and rectify errors.
Top 10 Credit Cards for Low CIBIL Scores in 2024-2025
Here are the best credit cards in India for individuals with low CIBIL scores:
| Credit Card | Annual Fee (₹) | Credit Limit | Benefits | Eligibility |
|---|---|---|---|---|
| SBI Unnati Credit Card | Free for 1st Year | ₹10,000 – ₹50,000 | Cashback, reward points, minimal fees | 0-600 CIBIL score |
| Axis Insta Easy Credit Card | ₹500 | Based on the FD amount | Secured card, no income proof required | Fixed deposit-based |
| ICICI Instant Platinum Card | ₹199 | ₹20,000+ (FD-based) | Fuel surcharge waiver, rewards | FD-based approval |
| HDFC Secured Credit Card | ₹500 | 80% of FD value | Low interest rates, rewards | Secured against FD |
| Kotak Fortune Gold Card | ₹499 | ₹15,000 – ₹1,00,000 | Lifestyle rewards, insurance cover | Low income eligible |
| IDFC FIRST Classic Card | ₹250 | ₹10,000 – ₹1,00,000 | No annual fee, fuel surcharge waiver | Moderate CIBIL score |
| Bank of Baroda Assure Card | ₹250 | ₹25,000 – ₹2,00,000 | Minimal fees, insurance protection | FD-based approval |
| IndusInd Aura Secured Card | ₹500 | ₹20,000 – ₹1,50,000 | Health benefits, low-interest EMI | FD-secured |
| YES Bank Prosperity Card | ₹199 | ₹10,000+ (FD-based) | Reward points, lifestyle benefits | Moderate credit score |
| RBL Bank SuperCard | ₹999 | ₹15,000+ | Cashback, emergency loan facility | Flexible eligibility |
Detailed Analysis of the Best Credit Cards
SBI Unnati Credit Card
- Features:
- Cashback on spending.
- There is no annual fee for the first four years.
- Reward points on every ₹100 spent.
- Best For: Beginners or individuals without a credit history.
Axis Insta Easy Credit Card
- Features:
- Secured against a fixed deposit.
- No proof of income is required for approval.
- Instant issuance and minimal documentation.
- Best For: Individuals with no credit history or low income.
ICICI Instant Platinum Card
- Features:
- Fuel surcharge waivers.
- Rewards on every retail transaction.
- There are no annual fees after the first year.
- Best For: Frequent commuters who need fuel benefits.
HDFC Secured Credit Card
- Features:
- A credit limit linked to 80% of your FD.
- Earn rewards for spending.
- Low interest rates on overdue payments.
- Best For: Individuals looking for flexibility and rewards.
Kotak Fortune Gold Card
- Features:
- Earn rewards on dining and shopping.
- Insurance cover for credit card balance.
- Easy eligibility with minimal documentation.
- Best For: Low spenders seeking a secure option.
IDFC FIRST Classic Card
- Features:
- No joining or annual fees.
- Interest-free cash withdrawals for 48 days.
- Reward points on every transaction.
- Best For: Everyday spending without additional charges.
Bank of Baroda Assure Card
- Features:
- 100% credit limit of the FD value.
- Insurance protection for accidental death.
- Minimal joining and annual fees.
- Best For: FD holders who want to improve their credit score.
IndusInd Aura Secured Card
- Features:
- Cashback on medical expenses.
- Free health checkups.
- Low-interest EMI options for large transactions.
- Best For: Health-conscious individuals.
YES Bank Prosperity Card
- Features:
- Earn reward points on online transactions.
- Access to airport lounges.
- Low interest rates.
- Best For: Frequent online shoppers and travelers.
RBL Bank SuperCard
- Features:
- Convert your credit limit into a personal loan during emergencies.
- Cashback on grocery purchases.
- Interest-free cash withdrawals for up to 50 days.
- Best For: Emergency financial needs and everyday expenses.
How to Choose the Right Credit Card for Low CIBIL Scores
- Understand Your Needs: Are you looking to rebuild your credit, earn rewards, or access emergency funds?
- Compare Costs: Look for cards with low fees and minimal additional charges.
- Check Eligibility: Opt for secured cards if your score is very low.
- Use Responsibly: To improve your score, avoid overspending, and pay bills on time.
Conclusion
A low CIBIL score doesn’t mean you’re out of options. The credit cards listed above are designed to help individuals with poor or no credit history. By choosing the right card and using it responsibly, you can gradually rebuild your creditworthiness and gain access to better financial products.
FAQs
Q. Can I get a credit card with a low CIBIL score?
A. Yes, many banks offer secured or beginner credit cards for individuals with low credit scores.
Q. How do secured credit cards work?
A. These cards are issued against a fixed deposit, and the credit limit depends on the deposit amount.
Q. How does using a credit card help improve my CIBIL score?
A. You can improve your credit score by making timely payments, keeping your credit utilization low, and using your card responsibly,
Q. Are there any risks in using credit cards for low CIBIL scores?
A. The primary risk is overspending, which can further lower your score if you fail to pay your bills on time.
Q. How long does it take to rebuild a CIBIL score?**
A. It typically takes 6–12 months of consistent, responsible credit behavior to see significant improvements.
