Credit Cards for Low CIBIL Scores: Easy Approval Choices

One might think getting a credit card for a low CIBIL score can be hard. However, certain financial institutions allow you to access credit cards even if you don’t have a perfect credit score. Through these products, you can also work on your credit score to upgrade your credit card in time. To know more about how you can get these cards, read on.

Credit Card Options

To get a credit card, you need to have a fair to excellent credit score. If you have a poor credit score, you still have certain options to get a credit card and build your credit score gradually. The different types of credit cards you can use to do so include:

Secured Credit Card

Any regular credit card is an unsecured form of credit given based on your creditworthiness. To get a secured credit card, you will need to have a fixed deposit which will serve as a collateral requirement. Here are some of their features:

• Backed by a fixed deposit
• Deposit-based credit limit
• Interest rates vary and you earn interest on your FD

Using your low CIBIL credit card smartly and paying bills on time will positively impact your credit score. 

Also Read: Tips To Improve Credit Score

Credit Cards Issued by Your Primary Bank

If you are just starting to build a credit history, a free credit card from your bank can be a great option. Banks may provide you with a credit card even if you are young, have never handled credit, and have no credit score based on your history with them. Alternatively, it may offer you a credit card even with a low CIBIL score if you have sufficient funds in your account or a long history. 

Unsecured Credit Cards with High Fee

Certain financial institutions provide credit card options with high fees and interest charges. These cards do not require you to have a high CIBIL score. Unlike secured cards, they also do not need you to provide a deposit as collateral. They charge high maintenance fees for extending the facility and mitigating their risk. You can use these cards to improve your score over time and shift to a card with lower charges and additional features.

Also Read: Credit Card Vs Debit Card

How to Improve Credit Score

It is only a stepping stone when you apply for a low CIBIL score credit card. Improving your credit score is a must to get access to more suitable credit cards. The following are some strategies to boost your CIBIL score with credit cards for poor credit scores:

• Pay your credit card EMIs and bills on time to demonstrate responsible financial habits 
• Keep your card’s credit utilisation ratio (proportion of the available credit limit to the total limit) below 35%
• As too many hard inquiries can reduce your credit score, avoid applying for multiple low CIBIL credit cards simultaneously
• Regularly check your credit score to ensure there are no inaccuracies in your CIBIL report, which can weigh your score down 

Also Read: What is Virtual Credit Cards

Note that credit cards can have higher interest rates as compared to personal loans. You can use the latter to fund your requirements at reduced borrowing charges. If you need instant cash, you can apply for a Fibe Instant Cash Loan and get up to ₹5 lakhs. Get the Fibe Personal Loan App for IOS and Android devices to secure a loan at competitive rates and with minimal paperwork.

FAQs on Credit Cards with Poor Credit Scores

How to get a credit card if my CIBIL score is low?

Certain issuers allow you to get a credit card for a low credit score by pledging your deposits as collateral. You can also get free credit cards from your primary bank or apply for a high-fee unsecured credit card. You can also use these cards to work on your credit score to get a regular credit card with enhanced benefits at lower costs.

What credit card options are available for those with a low CIBIL score?

You can mostly avail of three types of credit cards with low a CIBIL score. These options are secured credit cards, unsecured cards and credit cards offered by your primary bank based on your relationship. 

Do credit cards for low CIBIL scores have higher fees or interest rates?

While unsecured credit cards may have lower interest rates than regular ones, high-fee unsecured cards come with higher fees and charges.

Which credit card is the easiest to obtain with bad credit?

A secure credit card with an FD is an easily attainable credit card which you can use to work on your credit score.