How to Get a Credit Card with a Low CIBIL Score

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Written By Adeyemi Adetilewa

Your CIBIL score is a significant factor when applying for a credit card.

It is essential to check the minimum CIBIL score for credit card required by your chosen card issuer before applying. Typically, a score above 750 is considered ideal, but having a low score doesn’t eliminate your chances of getting approved.

Steps to Get a Credit Card with a Low CIBIL Score

By taking specific steps and exploring alternative options, you can still secure a credit card and work on rebuilding your creditworthiness. Here’s a comprehensive guide to obtaining a credit card with a low CIBIL score.

1. Understand Your CIBIL Score and Credit Report

Before applying for a credit card, review your CIBIL score and credit report. Identifying the reasons for your low score—be it missed payments, high credit utilization, or loan defaults—helps you plan corrective actions.

Obtain your report from authorized credit bureaus and check for discrepancies or errors. Rectifying these inaccuracies can slightly improve your score, increasing your chances of approval.

2. Apply for a Secured Credit Card

One of the most straightforward ways to get a credit card with a low CIBIL score is by opting for a secured credit card. These cards are issued against a fixed deposit (FD) with the card issuer, providing collateral for your credit limit.

Since the risk to the issuer is minimal, secured credit cards have lenient approval requirements, even for individuals with low credit scores. They also serve as an excellent tool for rebuilding your credit score with responsible usage.

How to Get a Credit Card with a Low CIBIL Score

3. Choose Credit Cards for Low Credit Scores

Many banks and financial institutions offer credit cards designed for individuals with low or no credit scores.

These cards usually come with basic features and lower credit limits but provide an opportunity to establish or rebuild credit. Research such options and ensure the terms align with your financial needs.

4. Opt for Add-on or Supplementary Cards

If your immediate family member holds a primary credit card, you can request an add-on or supplementary card linked to their account.

While you won’t need to meet the credit score requirements, your spending will be reflected in the primary cardholder’s account. This arrangement offers the convenience of a credit card without needing to qualify independently.

5. Explore Co-branded Credit Cards

Co-branded credit cards are issued in partnership with specific brands or service providers, often with relaxed eligibility criteria. They are tailored for particular spending categories like travel, fuel, or shopping.

These cards are easier to obtain even if you have a low CIBIL score, as issuers may consider additional factors beyond credit scores.

How to Get a Credit Card with a Low CIBIL Score

6. Limit Your Applications

Applying for multiple credit cards in quick succession can harm your CIBIL score further. Each application results in a hard inquiry, which temporarily lowers your score.

Instead, research the eligibility criteria for various cards and apply only for those you’re most likely to get approved for. This focused approach reduces the chances of rejection.

7. Improve Your Income-to-Expense Ratio

A strong income-to-expense ratio can offset the impact of a low CIBIL score during credit card evaluation.

Demonstrating a stable income and low monthly obligations reassures issuers of your repayment ability. If possible, submit proof of additional income sources or assets to strengthen your application.

8. Consider Using a Guarantor

The guarantor’s financial stability and credit history can enhance your chances of approval. However, the guarantor will share liability for your credit card usage, so this option should be chosen responsibly.

9. Negotiate with the Issuer

Some credit card issuers are open to negotiating terms for applicants with low credit scores.

You may need to accept higher interest rates or lower credit limits as a compromise. While these terms may not be ideal, they provide an opportunity to build your credit score over time.

How to Get a Credit Card with a Low CIBIL Score

Advantages of a Credit Card Despite a Low CIBIL Score

Obtaining a credit card even with a low CIBIL score has several benefits:

  • Opportunity to Improve Credit Score: Responsible usage, such as timely payments and maintaining a low utilization ratio, helps rebuild your credit score.
  • Cashless Convenience: A credit card provides cashless payment options, making transactions seamless.
  • Emergency Access to Funds: Credit cards can act as a financial safety net during emergencies, helping you manage unexpected expenses.

Key Considerations When Applying with a Low CIBIL Score

  • Avoid High-interest Cards: Low CIBIL scores may limit your options to cards with higher interest rates. Use such cards sparingly and clear dues promptly to avoid accumulating debt.
  • Stay Within Limits: Stick to a disciplined spending pattern and avoid exceeding your credit limit to maintain a positive impression with the issuer.
  • Monitor Your Credit Report: Regularly check your credit report to track improvements and ensure no errors affect your score.

Focus on Rebuilding Your CIBIL Score

While working towards obtaining a credit card, rebuild your CIBIL score. Timely repayment of existing loans, lowering your credit utilization ratio, and avoiding defaults will gradually improve your score.

Consistent financial discipline over several months will make it easier to qualify for better credit cards in the future. Check your CIBIL score and report regularly to stay up-to-date with the changes in your credit profile.

A low CIBIL score doesn’t have to be a roadblock in obtaining a credit card. By exploring secured cards, co-branded options, or leveraging your relationship with your bank, you can improve your chances of approval.

Simultaneously, focus on rebuilding your credit score through consistent financial discipline. With patience and a proactive approach, you can secure a credit card and gradually enhance your creditworthiness.

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