How to Get a Credit Card Without CIBIL Score

No CIBIL score? No problem! You might think that securing a credit card is impossible without a stellar credit history, but that’s not entirely true. Many people find themselves in a situation where they need a credit card but lack a CIBIL score. Whether you’re a young adult just starting out or someone looking to rebuild their credit, this guide will equip you with practical strategies to get a credit card, even without a perfect financial history.

What is the CIBIL score?

A CIBIL score is a three-digit number ranging from 300 to 900 that reflects your creditworthiness. It’s essentially a numerical representation of your credit history, showing lenders how reliable you are at repaying borrowed money. This score is calculated based on information from your credit report, which includes details about your loans, credit cards, and payment history. A higher CIBIL score generally indicates a better credit profile, making it easier to secure loans and credit cards with favourable terms.

Why Do Banks and Financial Institutions Check CIBIL Score Before Issuing a Credit Card?

Banks and financial institutions check an individual’s CIBIL score before issuing a credit card because credit cards are unsecured loans. They use the CIBIL score to assess whether the applicant is likely to repay the credit card bills responsibly.

A poor credit history or a record of missed payments increases the risk of default, which can result in financial losses for the bank. To minimise this risk, banks review the applicant’s credit history to ensure they are financially capable of handling a credit card.

When a bank requests information, TransUnion CIBIL Limited provides the individual’s credit report and score. Banks analyse records of late payments, defaults, and existing loans or credit cards to evaluate the individual’s payment behaviour. A low CIBIL score indicates potential difficulties in paying credit card bills. It’s important to note that a lack of credit history can sometimes be viewed as a negative factor as well.

Minimum CIBIL Score Needed to Avail a Regular Credit Card

CIBIL scores generally range from 300 to 900, with a higher score indicating better creditworthiness. A score close to 900 is considered excellent, while a score of 700 or above is typically deemed good. Most banks and financial institutions usually require a CIBIL score of 700-750 or higher to issue a regular credit card. However, there are no strict rules, and some banks may offer credit cards to individuals with lower scores as well.

How To Get a Credit Card Without CIBIL Score?

To get a regular credit card without a CIBIL score, consider the following options:

1. Get a Secured Credit CardThis is a straightforward way to obtain a credit card if you don’t have a CIBIL score. With a secured credit card, you make a deposit into a fixed deposit account with a bank. The bank then issues a credit card against fd with a limit based on your deposit, typically between 70% to 90% of the deposit amount. This helps you build your CIBIL score over time.
2. Get an Add-On Credit CardIf you have a family member with a primary credit card, you can apply for an add-on credit card. This card shares the credit limit of the primary card but offers similar benefits and features. It’s a good way to start building your CIBIL score and can be useful in emergencies.
3. Credit Card Based on Your Savings AccountSome major banks offer credit cards linked to a savings account, even if you don’t have a CIBIL score. To get a credit card this way, you will need to deposit a specific amount of money into your savings account. The bank will then issue you a credit card based on the deposited amount.
4. Get a Prepaid Credit CardIf you don’t have a CIBIL score or have a poor credit history, you can opt for a prepaid credit card. This type of card is available from many major banks and financial institutions in India. With a prepaid credit card, you deposit a certain amount of money onto the card, which you can then use just like a regular credit card. This is a good option for individuals with a bad credit score or no credit history.
5. Credit Card Against Salary AccountIf you have a good steady income and a salary account with a bank, you may qualify for a credit card. Banks often offer credit cards to salary account holders, using their regular income as a sign of creditworthiness, even if they don’t have a CIBIL score. If you have a salary account, it’s a good idea to check for any pre-approved credit card offers from your bank.

How to Build or Maintain Your Credit Score

A strong credit score opens doors to better financial opportunities. Follow these tips to build or improve your creditworthiness:

1. Apply for a Small LoanConsider taking out a small personal or credit builder loan from a bank. Paying these loans back on time can help create a positive credit history and improve your CIBIL score over time.
2. Pay Bills on TimeUtility companies usually don’t report your payment history to credit bureaus. However, paying your utility bills on time can positively impact your credit score when using services like Experian Boost. This tool includes your payments for gas, electricity, water, and other utilities in your Experian credit report and scores.
3. Monitor Your Credit ReportRegularly review your CIBIL score report for any errors or discrepancies. Correcting mistakes can help improve your creditworthiness.

Closing Thoughts

Securing a credit card without a CIBIL score may feel challenging, but it’s possible. You can explore options such as secured credit cards, add-on cards, or credit cards linked to savings accounts to start building your credit history. Responsible use of credit is crucial for improving your creditworthiness. Making consistent and timely payments on your credit obligations will positively affect your CIBIL score and lead to more financial opportunities in the future.

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