Minimum CIBIL Score Required for Citibank Credit Card

Last Updated : Dec. 9, 2020, 5:41 p.m.

Citibank offers credit cards across various categories like fuel, travel, lifestyle, fine dining, shopping, cashback, reward points, and much more. But to get a Citibank card, you should have a good CIBIL score. Let us now understand what the minimum CIBIL score required is for a Citibank credit card.

Importance of CIBIL Score for Getting a Citibank Credit Card

When you apply for a Citibank credit card, the bank looks at your Credit Report from TransUnion CIBIL to understand your creditworthiness. A good CIBIL score is important to get your Citibank credit card application approved. This is because lenders feel confident that you will handle your credit card well. They are assured that you will pay your bills on time. The higher the CIBIL score, the higher the credit limit as well. The minimum CIBIL score needed to get a Citibank credit card is 750 and more.

Reasons for Rejection of Citibank Credit Card

• Lower CIBIL score: If you have a poor or low CIBIL score, you will not be eligible for a Citibank credit card. This is because you will be seen as a high risk credit card applicant. Lenders will doubt your financial stability and your capability to pay your bills on time.
  
• Income: Each Citibank credit card will have different income requirements. If you do not satisfy the minimum income requirements, your application is likely to be rejected.
  
• Hard inquiries: Citibank makes a hard inquiry every time you apply for a credit card. Multiple hard inquiries will bring down your CIBIL score. This is likely to lead to your credit card application being rejected.

Free CIBIL Score Check

Tips for Improving Your CIBIL Score

If your CIBIL score is low, do not worry. Take steps to improve it so that you get your Citibank credit card application approved hassle-free. Here are some important tips to boost your CIBIL score.

• Clear all Your Existing Debts: Clear all the existing debts, loan dues, and outstanding credit card bills that you have.
  
• Start Making Timely Payments: Making timely payments is very important to have a good CIBIL score. Payment history is one of the most important factors that influence your CIBIL score. It makes up to 35% of your score. It shows how consistently you pay your credit card bills and EMIs. It also reflects how many late payments and missed payments you have. Defaults in payments can lead to a dip in your CIBIL score. Hence, always pay your loan EMIs and credit card bills on time and in full to build, keep up, and improve your CIBIL score. Set up auto payments and alerts for your dues so that you do not miss them.
  
• Maintain a Good CUR: The credit utilization ratio is the percentage of credit that you are using from the available credit limit. Experts recommend a CUR within 30% to 40% for a good CIBIL score. A high CUR will impact your credit score. This is because CUR makes up to 20 to 30% of your CIBIL score.
  
• Have a Good Credit Mix: A larger number of unsecured loans and less number of secured loans can impact your CIBIL score. So, try to keep a balance between them. Having a good credit mix will improve your CIBIL score. Take out various types of credit like instalment loans, revolving credit, mortgages, etc. Credit mix makes up to 10% of your CIBIL score. When you handle various types of credit simultaneously, lenders get the confidence that you have great financial responsibility.
  
• Avoid Applying for Multiple Credit: Applying for multiple credit triggers multiple hard inquiries which will lower your credit score. Hence, apply for credit only when required.

How is CIBIL Score Computed?

The CIBIL score is computed using various factors as follows:

• Payment History: This is an important factor influencing your CIBIL score. It makes up to 35% of your score. Hence paying your credit card bills and EMIs on time can help you get a good CIBIL score.
  
• Credit Utilization Ratio: The credit utilization ratio contributes to about 30% of your CIBIL score. Experts recommend a credit score within 30% to 40%. A high credit utilization ratio creates a negative impact on your CIBIL score. Not only that, lenders will think that you are credit hungry and spend a lot. They will get the impression that you are not able to manage your finances responsibly.
  
• Length of Credit History: The length of credit history contributes to about 15% of your CIBIL score. A longer credit history has a good impact on your CIBIL score. So, do not close old accounts which have had a good payment history.
  
• Credit Mix: Credit mix contributes to about 10% of your score. The diversity of your credit accounts enables you to get a good CIBIL score.
  
• New Credit Inquiries: Credit inquiries contribute 10% to your CIBIL score. Multiple hard inquiries contribute negatively to your CIBIL score.

Conclusion

So, 750 is the minimum Cibil Score Required for Citibank Credit Card. If you are having a Cibil Score of 750 and above then your application will get quick approval. On the other hand, people with a low Cibil Score usually get a low credit limit and the eligibility criteria for applying for a credit card are also strict.