Minimum Credit Score for Credit Card in India

Banks evaluate your credit report and score to judge your financial reliability when you apply for a credit card. Since credit cards are unsecured and do not require collateral, your credit score becomes a key factor in determining your eligibility. It also influences your credit limit and interest rate, and individuals with low or no credit history are seen as a higher risk.

What is the Minimum CIBIL Score Required to Get a Credit Card?

For a Credit Card approval, the minimum credit score required is 750. A score of 750 or above is seen as a good score and indicates lower risk to lenders, thereby increasing your chances of approval of your credit card application approval.

Credit Scores and Credit Card Applications

Getting a credit card is now fairly simple. In fact, all you need to have are two documents and banks are willing to approve a credit card application without much delay. You will need to furnish an identity proof and your PAN Card at the time of application.

A few examples of identity proofs are, passport, voter's ID, license, UID Aadhaar Number, etc. Once you submit the above mentioned documents, your credit card application undergoes a check on your CIBIL score.

How to Check Your Credit Score?

The steps to check the CIBIL score are mentioned below:

1. Through Major Credit Bureaus 

1. Experian:
   1. Offers free access to your credit report and FICO® Score 8.
   2. You get notified every time of changes in credit reports, score tracking, and will receive credit improvement tips.

1. Equifax:
   1. Provides a free monthly VantageScore 3.0 and credit report via Core Credit.
   2. Advanced features such as alerts and report locking cost Rs.4.95 per month (Equifax Credit Monitor).

1. TransUnion:

1. Does not provide free reports or scores directly.

1. Offers a paid credit monitoring service with access to VantageScore 3.0 for Rs.29.95 per month.

2. Via Free Credit Score Websites

1. Several websites offer free credit scores when you sign up. 

1. The type of score (FICO or VantageScore) and the credit bureau source may vary. 

1. Personalized insights and paid features like credit monitoring are offered by some platforms. 

1. Depending on your score, you can also check your loan or credit card offers based on your score. 

3. From Your Credit Card Issuer or Lender

1. Many banks and lenders offer customers free access to their credit score (FICO® or VantageScore).

1. The score can be checked in your online account or mobile app.

1. It usually updates monthly and may be the same score used to assess your creditworthiness.

1. Check if your current credit card or loan provider includes this service automatically or requires sign-up.

4. By Consulting a Nonprofit Credit Counselor

1. A nonprofit credit counseling agency can help you review your credit score; understand credit reports; and create a budget or manage debt

1. These services are often free or low-cost and can offer helpful financial guidance.

Credit Cards for People with Bad Credit or Low CIBIL scores

Most issuers refrain from giving out credit cards to those with poor credit histories. This is because the risk of delayed payments or defaulting on payments are high.

However, sometimes people are pushed into negative payment patterns due to genuine reasons e.g. medical emergencies or loss of employment, which impair their inflow of funds. In order to come up with the curve and rebuild creditworthiness, banks offer secured credit cards.

There are multiple ways to obtain credit card without CIBIL score are mentioned below:

1. Secured Credit Cards

1. These cards are issued against a fixed deposit (FD) held with the bank.

1. The FD acts as collateral, making approval easier even without a credit history.

1. You can get started with a minimum deposit of Rs.10,000 to Rs.20,000.

1. Offered by leading banks, such as SBI, ICICI, and Axis Bank.

1. Timely payments help build or improve your CIBIL score.

2. Add-On Credit Cards

1. You can become an add-on user under a family member's existing credit card.

1. You gain credit usage experience, but the primary cardholder will remain financially responsible.

1. Ideal for building early exposure to credit without needing individual approval.

3. Salary Account-Based Credit Cards

1. Banks may offer credit cards to salaried individuals without credit history.

1. Approval is based on salary credits, employer profiles, and account transaction history.

1. A good option for first-time credit card applicants with stable income.

4. Pre-Approved Fintech Credit Cards

1. Based on your digital payments or UPI activity, fintech companies may offer low-limit credit cards.

1. These cards do not require a CIBIL score.

1. Convenient for new-to-credit users looking for easy approval.

When you apply for a credit card without CIBIL score, here are the ways to improve the chances of approval:

1. Maintain a healthy account balance.

1. Consistent monthly income.

1. Avoid multiple credit-card applications

1. Apply at the same bank where you hold an account.

1. Start with a co-branded or secured credit card.

Don't let a Bad Credit Score Prevent you from Obtaining a Credit Card

With an exponential growth of credit card users in the country over the last few years, the rise of defaulters have increased as well. While it is quite simple in this day and age to obtain a credit card, a bad credit score can tarnish one's dream of doing so. However, it is not an impossible task. Starting humbly with a secured credit card with a reasonable limit can be the answer to reviving an individual's credit score.

A secured credit card is a card that is supported by your savings account. The savings account acts as collateral to your credit card in this case. These cards are relatively easier to obtain, and if used responsibly can improve the Credit Score in a few months time, granting access to obtain another card.

Building a good credit history is one of the most important factors that determine your credit score. Apart from just building a good credit score, having a secured credit card is also simple to obtain as there is no income proof required. And, in most cases, banks will approve these cards for low salaried individuals as well.

The next step, after getting a secured card, is to maintain it and diligently pay off the debts to be on the way to a good score.

A good credit score can help you secure lower interest rates on loans and credit cards.

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