How To Get A Credit Card With Low CIBIL Score?
With the increasing users of credit card in India, number of defaulters are also increasing. This is resulting in bank or credit card company denying card applications of the individuals with a bad credit since they have a low CIBIL score. There could be many reasons why a person defaults a credit card payment such as job loss due to recession, family emergency, negligence and many others.
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.
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.