Having a low credit score or no credit history might stop you from using best credit cards. Some of the top credit card providing companies have a minimum credit score requirement. CIBIL is among the top credit bureaus companies that provides credit score and report. The score generated by them is called CIBIL score which is a 3-digit number showing the payment history of an individual. The score ranges from 300-900 wherein the higher range represents strength of the score. Financial institutions consider a credit card application suitable on the basis of this score. In this article, we will talk about the minimum CIBIL score required to apply for a credit card or get approval for it.
Table of Contents
- 1 How Much CIBIL Score Is Required for Credit Cards?
- 1.1 What benefits do you get on a credit card with good CIBIL Score?
- 1.2 Can You Get Credit Card Without CIBIL Score?
- 1.3 How Can You Build a Good CIBIL Score with a Credit Card?
- 1.4 Which banks give you Credit Card with Zero CIBIL Score?
- 1.5 How to Check CIBIL Score by PAN Card Free Online?
How Much CIBIL Score Is Required for Credit Cards?
The suitable or minimum CIBIL score which is required for most of the credit cards is 750. The applicants having a score below 750 might not get approval for a card at some of the top companies. However, most of the banks also offer credit cards to those who do not have a credit history or score below 750. But, the fact remains that those who have a score of 750 or above are eligible for a lot more than those who are not in this category.
What benefits do you get on a credit card with good CIBIL Score?
Read below the advantages that a good CIBIL score holder gets for credit cards.
- Eligible for top credit cards
- Suitable for a higher credit limit
- Lower interest rate on credit cards
- Easy credit card approval
- More negotiating power on credit card interest rate
Can You Get Credit Card Without CIBIL Score?
Yes, you can. Those who have zero CIBIL score do not lose eligibility to apply for a credit card. There are many banks offering wide range of credit cards to those having no credit history since the factors based on which credit cards are given are income and CIBIL or credit score. If you have no credit history but are presently working in a reputed firm and earning quite well, your application might be considered eligible for a credit card. The fact, however, is that having a credit history and good credit score makes you eligible for best credits as mentioned above. There is of course no harm in working towards creating a credit history or improving your CIBIL score if it is less than 750.
How Can You Build a Good CIBIL Score with a Credit Card?
Do you know that your credit card can help you build a good CIBIL score? There are a few basic methods by which you can do so. These are paying bills on time, controlling your credit card expenses, checking your credit reports, clearing off debts as soon as possible. We are showing details of all such methods below so that you can understand better. Have a look.
- Pay Bills on time – The most basic thing to do if you want to build a good CIBIL score is to make a habit of always paying your credit card bills on time. Reason: repayment history contains the highest weightage (35%) among all the aspects that make your CIBIL score. So, when you pay your bills on time, your repayment history will build stronger. Every credit card has a due date within which you have to pay the total due or minimum due amount (5% of the total dues). Always try to pay the full due amount if you want to build a good CIBIL score.
- Control Your Credit Card Expenses – Having a credit card in your pocket can be lucrative at times but don’t use your credit card beyond your repayment capacity. Managing the credit card expenses is like winning the half battle. Let’s understand how. When you spend within your income and repayment capacity, you can pay the credit bill on time and build a good CIBIL score. On the other hand, if you spend beyond your capacity, you may face difficulties in paying the credit card bill.
- Spend Within the Credit Limit – Your credit card has a certain limit and one of the best ways to build a good CIBIL score is to always spend within 30% the overall limit. An individual, who has a habit of exhausting his or her card limit, might be seen as a credit-hungry borrower. Such an impression, if lasted long, could reduce your CIBIL score drastically. That’s why always try to keep your credit card spends upto a certain limit. This way, you can pay your bills on time.
- Check Your Credit Report – Sometimes, errors in your credit report can also affect your CIBIL score negatively. To avoid this, always check your credit report thoroughly to see if there is any kind of error whether it is some personal detail or transaction-related. On finding any error, try to rectify it as soon as possible.
- Set-up Payment Reminders – You can also set up a payment reminder or auto-pay facility for your credit card. This way, you will never miss your credit card payment. With the Auto-pay feature, you can set a fixed amount that will be debited from your account linked with your credit card as soon as your bill generates. Timely payments will ensure you build a good CIBIL score.
- Clear Debts as Soon as Possible – It is important to clear your credit card debt as soon as possible. To ensure the same, always pay the total due amount. By paying a minimum due amount every month, you may end up in a vicious Debt trap because of the high interest on revolving credit. The interest rate can be around 30-45% annually. That’s why spend only what you need and not on unnecessary things so that you can pay the bill on time.
Which banks give you Credit Card with Zero CIBIL Score?
As mentioned above, there are many banks that accept credit card applications from those who have zero CIBIL score or no credit history if you have a salary account with the bank. Some of the banks offering this facility are mentioned below:
- HDFC Bank
- ICICI Bank
- Kotak Mahindra Bank
- Axis Bank
- RBL Bank
- Standard Chartered Bank
If you haven’t checked your CIBIL score yet, you may follow the below steps wherein it can be done with PAN instantly.
How to Check CIBIL Score by PAN Card Free Online?
Here are the simple steps that are to be followed to check CIBIL score check for free.
- Visit ‘Check CIBIL Score’ page at Wishfin.com
- Provide your full name as mentioned on the PAN card
- Enter your Date of Birth
- Choose the gender you belong to
- Mention your PAN card number
- Enter your contact address
- Provide the email ID fn which you want to get the credit report
- Enter your mobile number
- Submit the form
To conclude we would say, if you want to enjoy the maximum benefits on a credit card, you must maintain a minimum CIBIL score of 750.