How to Get a Credit Card for Low CIBIL Score

Dec 16, 2020

How to Get a Credit Card for Low CIBIL Score

Credit cards are financial products used to avail short-term credit. They allow you to spend now and pay later. Credit cards can be a valuable addition to the wallet if used responsibly. With credit cards, you can purchase almost anything instantly— be it big-ticket items such as electronic goods, air travel, or even little things such as groceries.

Further, credit cards can also be used effectively to build a good credit score, which is possible if you make consistent, on-time repayments. Further, they also offer benefits such as rewards or cashback, protection against fraud, and allow you to put a deposit on hold on a rental or hotel room easily.

What Is a CIBIL Score?

CIBIL score is essentially your credit score. It is denoted by a three-digit number between 300 and 900. Your CIBIL score indicates how good your credit history has been. A CIBIL score takes into account your previous credit behavior with your lenders/bank and factors in your borrowing and repayment habits.

Why Your CIBIL Score Is Important for Borrowing a Loan

Your CIBIL score plays a crucial role when it comes to a loan application. After you fill out your loan application form, the first thing the lender will assess is your CIBIL score or credit score. If you have a low CIBIL score, your application may remain stagnant at this stage itself. However, if you have a good credit score or CIBIL score, your application has better chances of being processed. This is because your CIBIL score determines whether you are creditworthy; that is, your CIBIL score determines whether you will pay back your loan based on your past behavior.

When Does a Person Get a Bad CIBIL Score?

A CIBIL score that is above 750 is considered to be a good credit score; however, anything between 300 and 550 is considered to be a bad CIBIL score. This is most likely to happen when you delay the payment of any of your credit card bills or EMI. Further, having a very high credit utilisation ratio also works against your credit health. This means that you must use a limited part, say only 15-30% of your credit card limit. This is because if you constantly use the excessive balance on your card, it would mean that you are unable to handle your finances well. Things such as not reviewing your credit card report, having multiple unsecured loans, and changing your card very often can also contribute to a bad credit score. If you have a bad credit score, it becomes extremely difficult for you to avail any loan or easy credit card, simply because it shows that you do not have the ability to repay what you borrow.

How to Get a Credit Card for Low CIBIL Score

Now, if you have a low credit score, fret not! There is still a way to avail a credit card for low CIBIL score and gradually build/enhance your credit score. However, when you get a credit card for low CIBIL score, certain terms and conditions apply. Mostly, credit card providers will be able to offer you a secured credit card. Here, you need to open a fixed deposit with the bank/credit card provider, and your credit card limit, in this case, will be up to 100% of the deposit. You can also get an add-on card with a primary credit card holder in the family. This add-on card, however, will share the limit with the primary card. Hence, both cards will have a reduced limit. Another way to get a credit card for low CIBIL score is through banks against your savings account.

Gold Loan As an Alternative

Now, in case you're struggling to get a loan or credit card for low CIBIL score, understandably, it may be challenging to meet your short-term cash needs. However, there is another alternative to get instant cash. You can apply for a gold loan, which has several advantages. The most important one is that gold loans do not require a credit score or income proof. Whatever your credit history, a gold loan can be availed.

Rupeek is one such gold loan provider that understands your needs. Rupeek provides instant gold overdraft facility with flexible credit terms at attractive interest rates. The application process is easy, and the disbursal is instant. All you need to do is apply online, get your gold valued in the comfort of your home within 30 minutes, and get your loan approved before our representative leaves your home. What's more? Your gold will be stored safely in the nearest bank. For this, Rupeek has partnered with top banks in India. Moreover, Rupeek will ask for no documentation apart from KYC; no income proof, employment proof, or credit history required!

Rupeek has already served more than 1 lakh customers in their time of need— be it health emergencies or small business requirements. With monthly interest rates starting from 0.79 %, the highest per gram rate, and 100% door-to-door insurance, gold loan solutions from Rupeek can be just the thing you need.

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