You can apply for credit cards to boost your creditworthiness and establish a good credit history. Credit cards can help increase your credit score, allowing you to avail loans easily. However, having a minimum Credit score to avail credit cards is essential.
Every borrower gets a CIBIL or credit score assigned to them by various credit card bureaus. Lenders prefer borrowers with high credit scores, indicating a good repayment history and adherence to loan terms.
It is important to know your credit score before acquiring credit cards. You can check your credit score through your CIBIL score login details.
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What is the Minimum CIBIL Score Needed for Credit Cards?
Credit cards aren’t approved for just anyone. You need to have a minimum CIBIL score to get your credit card application approved. By checking your score using your CIBIL score login details, you’ll be able to see if you have the minimum CIBIL score required.
The required CIBIL score varies depending on different card issuers. Generally, the minimum CIBIL score is 750 for credit card approval. But, getting a credit card will be easy if your credit score falls under the good to excellent range.
- For TransUnion CIBIL, the general range is from 300-900. A good to excellent CIBIL score is above 700.
- For Experian, the general range is from 300-850. A good to excellent CIBIL score is above 700.
- For Equifax, the general range is from 300-8500. A good to excellent CIBIL score is above 670.
Sometimes, your credit card application might be rejected even if you have a good credit score or creditworthiness. Some of the reasons for that could be:
- A short spanned credit history.
- Recent payment delays and avoidance.
- Excessive debt.
- Excess credit available.
Why Do Banks Check Credit Scores?
Credit cards are generally unsecured loans. Hence, issuing a credit card to an applicant becomes highly risky for banks. For this reason, banks need to verify whether the applicant can repay the debt associated with taking a loan promptly. The applicant’s CIBIL or credit score is the best way to determine this. Hence, it is essential that you check your credit score through your CIBIL score login credentials.
The credit score shows the kind of borrower a credit card applicant is. Banks get the necessary information on the borrower – how they use money, their credit and repayment history, and whether they missed any payments. If the bank is unsatisfied with the person’s credit score and financial history, it will reject their credit card approval.
Can You Get a Credit Card With a Low Credit Score?
Often, individuals can miss out on repayments for genuine reasons such as health problems or financial issues like unemployment. While missing out on payments will lower credit scores, such people can opt for special procedures to get their credit card approved.
They can choose a secured credit card. Banks offer a secured credit card against a fixed deposit. Payment dues are redeemed from the credit card holder’s fixed deposit during payment delays.
You can quickly rebuild credit and improve your CIBIL score through secured credit cards. After availing a secured credit card, if an individual makes timely payments, they can quickly repair their credit histories.
Conclusion
Banks can judge your credit behaviour and how you use your money based on your CIBIL score. Therefore, to avail a credit card, you need to present a good credit score with a reputable financial history to the bank. You can check your current credit score using your CIBIL score login details. If your current score is around 750, then you can easily avail a credit card. A low credit score can lead to the bank rejecting your credit card application.