Low CIBIL Score? Here's How You Can Still Get a Credit Card

Ever wondered why you are seeing a new category of cards online called a low CIBIL score credit card? Well, if you have a score that is under 600 or even 700, getting a card can be a challenge. If you’re wondering why, it is because credit card companies assess your risk of default or late payment by checking this score. After all, credit refers to a loan that you are getting based on your ability to repay and your repayment behaviour. Both of these factors are reflected in your score.  

Why Credit Or CIBIL Score Is The First Step

This 3-digit number generated by credit bureaus determines your likelihood of repayment as it considers

• Your current debt 
• Utilisation of credit 
• Past record of EMI payments and credit card bill payments 
• Experience with credit

A higher score means that you pay your debts on time and have a good financial history.

Getting A Low CIBIL Score Credit Card

Sometimes unforeseen situations can result in a low CIBIL score. But don’t worry; here are some ways you can get a card. 

Going For Secured Credit Cards

Fixed deposit (FD) backed credit cards are one of the primary choices available in the market. With these cards, you just need to have a fixed deposit with the bank or issuer. This will serve as collateral against the credit limit. 

The credit limit that is provided will typically be a percentage of the deposited FD amount. Usually, it is between 60 and 70 percent. For instance, if you deposit ₹1 lakh, the credit limit that may be provided could be between ₹60,000 and ₹70,000. 

Selecting High-Interest Credit Cards

Banks and card issuers may provide you with credit cards with a low score, but they will charge high annual fees, joining fees, and interest rates. Be very cautious while using these cards because if you miss a payment, then your issuer may charge you hefty interest.

Choosing Family Or Co-Signed Credit Cards

Another great alternative can be a family credit card, also known as a co-signed credit card. This allows you to get a credit card if your family members add your name to their current credit cards.

• This is quite advantageous if you cannot obtain a credit card as a principal holder
• You can utilise credit card privileges and make use of your family member's good credit history
• The primary cardholder serves as a guarantee for on-time repayment

Getting Credit Cards From A Smaller Bank/Provider

Digital financial companies may have less stringent terms about your eligibility when it comes to credit card approvals. While evaluating your application, they may be open to considering factors other than your CIBIL score. Some companies may use alternate scoring models to assess your repayment ability. 

How To Become More Creditworthy

While trying out the tactics above can help you get access to credit, focusing on boosting your score is also important. After all, it affects how easily and affordably you can get a loan in the future. Be it to buy a home or to address a medical need, being creditworthy pays off. Try these strategies to improve your credit profile. 

• If you manage to get a credit card with a low CIBIL score, use it responsibly to enhance your score. Make sure you pay your credit card bills on time. 
• Always pay your EMIs on time, and boost your financial health by clearing loans on or before time. 
• Do not take on debts if you don’t need them. 
• Never forget to review your credit card statement and check for fraudulent transactions that inflate your bill. Reversing them will help you pay what you owe and not a penny more. 
• Do not overuse your credit card or use it to its limit consistently. This makes you seem hungry for credit. Stop at 40% of your limit. 
• Check your credit report once or twice a year to ensure your active and past credit accounts are showing correctly. If there are any errors, report them to see your score improve. 
• Avoid applying for multiple cards or loans from different financial companies just to boost your chances. Check if you qualify before you apply for credit card instant approval. 
• In the course of time, take up different kinds of loans, secured and unsecured, and pay them off on time. This will show you have experience with various types of credit.
• The One Credit Card is a great choice, whether you are looking for an FD-backed credit card or a regular one that helps you spend more responsibly. Its FD credit card offers you 100% of the value of your fixed deposit investment, so you can make the most of it. 

The One Credit Card App also helps you access your credit card statement and receive reminders for your bill payments. You'll also get a thorough visual breakdown of your expenses. What’s more, you can set your budget for different categories, like dining, shopping, and more, and get alerts when you reach the limit. 

This stylish metal card is also lifetime-free, so you don’t need to pay any joining fee, annual fee, or hidden charges. You can also get 5X reward points on your top two spending categories and enjoy cashback and discounts across brands like Zudio, Lenskart,OnePlus,s and more. So, what are you waiting for? Apply now for the One Credit Card, and start building your credit score.