Your credit score is like your financial reputation—it plays a big role in whether you get a credit card or not. This is why all issuers require a minimum CIBIL score for credit cards to ensure worthy applicants can apply. Here is a guide that breaks down the need for a good CIBIL score and its role in the credit card application process in simple terms.
What Exactly Is A CIBIL Score?
Think of it as your financial report card. It’s a 3-digit number that ranges from 300 to 900, representing how good you are at managing credit. Here are three facts that better explain its requirements.
- A higher score = better chances: A score closer to 900 is like an A+ for your finances – it makes issuers more confident in your ability to manage the card and its payments.
- Who calculates it? TransUnion CIBIL, based on your credit history (how regularly you pay your bills) and other factors.
- Depending on which credit score range, you can easily evaluate your ability to get approval on your application. Here is the table for your reference.
Quick Table: CIBIL Score Breakdown
Here’s a quick overview of how your CIBIL score can impact your creditworthiness and approval chances:
| Score Range | Creditworthiness | Approval Chances |
|---|---|---|
| 750 – 900 | Excellent | Very High |
| 700 – 749 | Good | High |
| 650 – 699 | Fair | Moderate |
| Below 650 | Poor | Low |
What is the Minimum CIBIL Score for Credit Card Eligibility?
Most banks and credit card issuers prefer a minimum CIBIL score of 750 or higher. Why 750? It shows that you are a responsible borrower. This minimises the risk of missing the credit card bill payment to the borrower, which may lead to financial loss for them.
However, there are some exceptions. Some issuers offer credit cards to individuals with lower credit scores, though these cards often come with lower credit limits or higher fees. Additionally, issuers may provide secured credit cards to applicants with no credit history. These cards are backed by a fixed deposit account, serving as collateral.
Factors Influencing the Minimum Score
Several factors can impact the minimum score required for credit approval. Here are the key influences:
- Type of Credit Card:
- Premium credit cards require higher scores.
- Basic cards or secured cards may have lenient requirements.
- Issuer’s Policy:
- Each bank sets its own threshold.
- Some banks approve with scores as low as 650 for specific cards.
- Your Financial History:
- A strong repayment history increases your chances.
- Multiple defaults can significantly lower your score.
Advantages of a High CIBIL Score
A high CIBIL score comes with several benefits that can improve your financial opportunities. Here are the advantages:
| CIBIL Score Benefits | Why It Matters |
|---|---|
| Easy Card Approval | Higher chances of getting approved. |
| Better Credit Limit | Banks offer higher limits. |
| Lower Interest Rates | Enjoy reduced interest on balances. |
| Access to Premium Cards | Avail of exclusive rewards and perks. |
- Easy Card Approval: it improves your chances of credit card approval
- Better Credit Limit: Banks offer higher limits if you show credibility to manage higher limit
- Lower Interest Rates: You can enjoy reduced interest on balances with a better score
- Access to Premium Cards: Avail of exclusive rewards and perks, including more lounge access, memberships and discounts on luxury brands
How to Improve Your CIBIL Score for a Credit Card
Improving your score is easier than you think. Here’s what you can do:
- Timely Payments
- Pay your credit card bills on time.
- Late payments negatively impact your score.
- Reduce Credit Utilization
- Keep your usage below 30% of the credit limit.
- Example: If your limit is ₹1,00,000, don’t exceed ₹30,000.
- Avoid Multiple Applications
- Too many inquiries lower your score.
- Space out credit applications.
- Monitor Your Credit Report
- Check for errors in your CIBIL report.
- Dispute inaccuracies promptly.
Therefore, it’s best to focus on improving your score to unlock better credit opportunities and enjoy premium perks.
Common Myths About the Minimum CIBIL Score
There are several misconceptions about the minimum CIBIL score. Here are some common myths and the truths behind them:
| Myth | Reality |
|---|---|
| A low score means no credit card. | You can get secured or basic cards. |
| Only income matters for credit cards. | Your credit score is equally crucial. |
| Closing old credit cards improves scores. | It can lower your score by reducing your credit history. |
Why One Credit Card Fits Perfectly
The minimum credit score for credit cards varies across banks and card types. While 750+ is the gold standard, you still have options if your score falls short. When it comes to meeting eligibility, One Credit Card stands out as it requires a minimum CIBIL score of 720, which is easy to achieve if you handle your credits wisely.
Once you meet the eligibility criteria, you can enjoy a simple application process with quick approvals to get your new credit card. Even if you don’t have a credit history, you can apply for a secure version to build your credit score from scratch. No hidden fees, transparent terms, and flexible repayment options further make it an option worth considering.
One Credit Card is there to support you whether you’re improving your credit profile or switching to a more intelligent financial tool. One Credit Card offers you exciting benefits, from discounts and value backs in different categories. The best part is that it offers 5X reward points on the top two categories each month.
You can get this card without paying any joining or annual fees. Its robust OneCard app helps you monitor and manage your credit activities to ensure your score remains high. Apply now to take charge of your money!
