Are you having difficulty getting approved for a credit card because of a low CIBIL score? Others understand. Many people encounter this difficulty, but there are still alternatives to consider. A low CIBIL score doesn’t automatically result in a complete denial of credit. This article delves into credit cards designed for individuals with low CIBIL scores, offering them a second opportunity to enhance their financial health and rebuild their credit. Rebuild Your Credit with a Credit Card for a Low CIBIL Score.
What is the CIBIL Score?
The CIBIL score, also called the Credit Score, is a numerical representation of an individual’s creditworthiness, ranging from 300 to 900. The Credit Information Bureau (India) Limited (CIBIL) calculates it based on their credit history, payment behaviour, and other factors. A higher CIBIL score indicates good credit health, while a lower score indicates a higher credit risk. The score is determined by analysing the data in the credit report, which includes factors such as payment history, credit utilisation, credit age, credit mix, and new credit inquiries. A strong CIBIL score can significantly benefit individuals by increasing their chances of obtaining loans and credit cards with lower interest rates. Conversely, a low score can result in loan applications being denied or higher interest rates being imposed. It is crucial to have a solid financial profile by maintaining a healthy CIBIL score.
How to Check CIBIL Score?
Here’s a step-by-step guide to check your CIBIL score:
Method 1: Check CIBIL Score for Free (Once a Year)
Visit the official CIBIL website ((link unavailable)).
Click on “Get Your Free Credit Score” and register with your details.
Verify your identity with an OTP sent to your mobile number.
Answer a few questions to authenticate your identity.
Your CIBIL score and report will be displayed.
Method 2: Check CIBIL Score (Paid Subscription)
Visit the CIBIL website and click on “Get Your Credit Score”.
Choose a subscription plan (1 month, 6 months, or 1 year).
Pay the subscription fee online.
Register and verify your identity (as above).
Your CIBIL score and report will be displayed.
Method 3: Check CIBIL Score through Authorized Partners
Visit authorised partners’ websites like banks, credit card companies, or financial institutions.
Log in to your account or register as a new user.
Navigate to the “Credit Score” or “CIBIL Score” section.
Your CIBIL score will be displayed (if available).
Remember to check your CIBIL score regularly to monitor your credit health and detect errors or discrepancies.
How to Improve Your CIBIL Score?
Here are some helpful suggestions to enhance your CIBIL score:
Pay your bills on time: Timely payments are vital in maintaining a solid CIBIL score, as payment history carries a significant 35% weightage.
Keep your credit utilisation low: It’s important to keep it low. By maintaining a credit utilisation ratio below 30%, you can demonstrate to lenders that you can responsibly manage your credit.
Keep an eye on your credit report: Regularly reviewing your CIBIL report can help you identify any errors or discrepancies.
Avoid applying for multiple loans: Applying for multiple loans can adversely affect your credit score.
Establish a credit history: One way to build a credit history is to take out small loans or credit cards and ensure timely repayment.
Diversify credit: Maintain a diverse credit portfolio by combining secured loans, such as a home or car loan, and unsecured loans, like a personal loan or credit card.
Avoid negative marks: Certain factors, such as late payments, defaults, and settlements.
Close unused accounts: It’s important to close unused accounts, as they can negatively impact your credit utilisation ratio.
Be patient: It’s important to maintain patience when building a solid credit history. This process takes time, so staying consistent and patient is crucial.
Consider seeking professional help: If you’re facing challenges with debt, it may be beneficial to consult a credit counsellor.
It’s essential to remember that enhancing your CIBIL score necessitates ongoing dedication and responsible financial behaviour. A solid financial profile requires a healthy CIBIL score.
Top Credit Card for Low CIBIL or Credit Score
SBI Advantage Plus Credit Card
The SBI Advantage Plus Credit Card is a secured credit card offered by the State Bank of India (SBI) that helps individuals with limited or no credit history to build their credit score.
Features:
– Requires a fixed deposit as collateral
– Credit limit equal to the deposit amount
– Annual fee: ₹500
– Interest rate: 2.5% per month
– Late payment fee: ₹200
– Cash advance fee: 2.5% of the withdrawn amount
Benefits:
– Helps build credit history
– Low annual fee
– Competitive interest rate
– Cashback and rewards program
– Fuel surcharge waiver
– Travel Insurance
– Purchase protection
Eligibility:
– Age: 21-60 years
– Income: ₹2.5 lakh per annum
– Fixed deposit with SBI
Documents required:
– Identity proof
– Address proof
– Income proof
– Fixed deposit receipt
This card is ideal for those who want to establish or rebuild their credit history and enjoy rewards and benefits.
SBI Unnati Credit Card
The SBI Unnati Credit Card is an unsecured credit card offered by the State Bank of India (SBI) and is designed for individuals with limited or no credit history.
Features:
– No annual fee for the first year
– Annual fee: ₹499 (waived if spending exceeds ₹50,000 in a year)
– Interest rate: 2.5% per month
– Late payment fee: ₹200
– Cash advance fee: 2.5% of the withdrawn amount
– Credit limit: Up to ₹50,000
Benefits:
– No income proof required
– No joining fee
– 1% fuel surcharge waiver
– 10X rewards points on dining, movies, and grocery purchases
– 1 reward point per ₹100 spent
– Redemption of points for gift vouchers or cash
Eligibility:
– Age: 21-60 years
– Income: ₹2.5 lakh per annum (no income proof required)
– Good credit history (if existing)
Documents required:
– Identity proof
– Address proof
– Photograph
This card is ideal for those who want to establish or rebuild their credit history, enjoy rewards, and avoid paying an annual fee.
Axis Bank Insta Easy Credit Card
The Axis Bank Insta Easy Credit Card is a unique, unsecured credit card tailored for individuals with limited or no credit history. It offers a range of exclusive features and benefits that set it apart.
Features:
– No annual fee
– Joining fee: ₹500 (reversed if spending exceeds ₹10,000 in 45 days)
– Interest rate: 2.5% per month
– Late payment fee: ₹300
– Cash advance fee: 2.5% of the withdrawn amount
– Credit limit: Up to ₹50,000
Benefits:
– No income proof required
– Instant approval and activation
– 10% off on dining, movies, and online shopping
– 1% fuel surcharge waiver
– 1 reward point per ₹100 spent
– Redemption of points for gift vouchers or cash
Eligibility:
– Age: 21-60 years
– Income: ₹1.8 lakh per annum (no income proof required)
– Good credit history (if existing)
Documents required:
– Identity proof
– Address proof
– Photograph
This card is ideal for those who want to establish or rebuild their credit history, enjoy rewards, and avoid paying an annual fee. Additionally, the instant approval and activation feature makes it a convenient option.
Kotak Mahindra Aqua Gold Credit Card
The Kotak Mahindra Aqua Gold Credit Card is a secured credit card that offers security for individuals with limited or no credit history.
Features:
– Requires a fixed deposit as collateral
– Credit limit equal to the deposit amount
– Annual fee: ₹999
– Interest rate: 2.5% per month
– Late payment fee: ₹300
– Cash advance fee: 2.5% of the withdrawn amount
Benefits:
– Helps build credit history
– 1% fuel surcharge waiver
– 10X rewards points on dining, movies, and grocery purchases
– 1 reward point per ₹100 spent
– Redemption of points for gift vouchers or cash
– Personal accident insurance cover
– Purchase protection
Eligibility:
– Age: 21-65 years
– Income: ₹3 lakh per annum
– Fixed deposit with Kotak Mahindra Bank
Documents required:
– Identity proof
– Address proof
– Income proof
– Fixed deposit receipt
This card is ideal for those who want to establish or rebuild their credit history, enjoy rewards, and have a fixed deposit with Kotak Mahindra Bank. Personal accident insurance coverage and purchase protection add an extra layer of security.
HDFC Money-Back Credit Card
The HDFC Money-Back Credit Card is a cashback credit card that offers rewards on everyday purchases.
Features:
– Annual fee: ₹500 (waived if spending exceeds ₹50,000 in a year)
– Interest rate: 2.95% per month
– Late payment fee: ₹300
– Cash advance fee: 2.5% of the withdrawn amount
– Credit limit: Up to ₹1.5 lakh
Benefits:
– 2% cashback on grocery, railway, and utility bill payments
– 1% cash back on other purchases
– No upper limit on cashback earnings
– Cashback redemption via statement credit or direct deposit
– Fuel surcharge waiver
– Travel Insurance
– Purchase protection
Eligibility:
– Age: 21-60 years
– Income: ₹2.5 lakh per annum
– Good credit history
Documents required:
– Identity proof
– Address proof
– Income proof
This card is ideal for those who want to earn cashback on their daily expenses, enjoy rewards, and have a good credit history. The cashback redemption options and additional benefits like fuel surcharge waiver and travel insurance make it a convenient choice.
IDFC FIRST WoW Credit Card
The IDFC FIRST WoW Credit Card is a unique rewards credit card tailored for young professionals and individuals with limited or no credit history. It offers a range of distinctive features and benefits that set it apart from other cards.
Features:
– No joining fee
– Annual fee: ₹499 (waived if spending exceeds ₹1 lakh in a year)
– Interest rate: 2.5% per month
– Late payment fee: ₹200
– Cash advance fee: 2.5% of the withdrawn amount
– Credit limit: Up to ₹1 lakh
Benefits:
– 5% cashback on online shopping, dining, and entertainment
– 1% cash back on other purchases
– No upper limit on cashback earnings
– Cashback redemption via statement credit or direct deposit
– Fuel surcharge waiver
– Travel Insurance
– Purchase protection
– Exclusive discounts on partner brands
Eligibility:
– Age: 21-60 years
– Income: ₹1.5 lakh per annum (no income proof required for students and homemakers)
– Good credit history (if existing)
Documents required:
– Identity proof
– Address proof
– Photograph
For young professionals, students, and homemakers seeking to earn cashback on their online shopping, dining, and entertainment expenses, the IDFC FIRST WoW Credit Card is the perfect choice. Its rewards and benefits make it an ideal option for those with limited or no credit history.
Rupicard
RuPay Card is an Indian domestic card scheme launched by the National Payments Corporation of India (NPCI). It is accepted at all RuPay-enabled ATMs and merchants across India.
Features:
– Low transaction fees
– Wide acceptance across India
– Secure transactions with EMV chip technology
– Variety of cards available (debit, credit, prepaid)
– Easy to apply and get approved
Benefits:
– Convenient and affordable
– Encourages digital payments
– Supports financial inclusion
– Offers rewards and discounts
– Compatible with BHIM UPI and AePS
Types of RuPay Cards:
– RuPay Debit Card
– RuPay Credit Card
– RuPay Prepaid Card
– RuPay Platinum Debit Card
– RuPay PMJDY (Pradhan Mantri Jan Dhan Yojana) Card
Eligibility:
– Age: 18 years and above
– Income: Varies depending on the type of card
– Identity proof
– Address proof
RuPay Card is an excellent option for a secure, affordable, and widely accepted payment solution.
OneCard Credit Card
The OneCard Credit Card is a mobile-first credit card offered by OneCard, a fintech company, in partnership with banks like IDFC FIRST Bank, Federal Bank, and SBM Bank India.
Features:
– No joining or annual fees
– Metal credit card
– Rewards program with 1% cashback or 5x reward points
– Foreign currency markup fee of 1%
– Interest rate of 3.49% per month (41% to 42% annually)
– Credit limit up to ₹5 lakh
– EMI options for purchases
Benefits:
– Lifetime free credit card
– Attractive rewards program
– Low forex markup fee
– Transparent charges
– Easy EMI options
– Mobile app for easy management
– Personalized credit limit
– Secure transactions with EMV chip technology
Eligibility:
– Age: 21-60 years
– Income: ₹25,000 per month
– Good credit history
– Identity proof
– Address proof
– Income proof
OneCard Credit Card is ideal for those who want a lifetime free credit card with attractive rewards, low forex markup fee, and easy EMI options. The mobile app makes managing your credit card and tracking your expenses easy.
Conclusion
Low CIBIL Score? Don’t Worry! These Credit Cards Can Help. A low CIBIL score does not automatically disqualify you from obtaining a credit card. With a clear understanding of the available options and a proactive approach to enhancing your credit score, you can gain access to credit and begin rebuilding your financial foundation. It is essential to review the terms and conditions carefully, make timely payments, and maintain a low credit utilisation to have a favourable credit experience. By utilising a suitable credit card and adopting responsible financial habits, one can overcome the obstacles posed by a low CIBIL score and attain improved economic stability.
FAQs
Q: How often is the CIBIL score updated?
A: The CIBIL score is updated monthly.
Q: Can I check my CIBIL score for free?
A: Yes, you can check your CIBIL score for free once a year from the CIBIL website.
Q: How can I improve my CIBIL score?
A: You can improve your CIBIL score by making timely payments, reducing debt, and avoiding multiple loan inquiries.
Q: Can a low CIBIL score affect loan approvals?
A: Yes, a low CIBIL score can negatively affect loan approvals and interest rates.
Q: Can I dispute errors on my CIBIL report?
A: Yes, you can dispute errors on your CIBIL report by contacting CIBIL directly.
Get Approved for a Credit Card with a Low CIBIL Score – Apply Now!
