Introduction: How to Get a Credit Card with a Low CIBIL Score: Proven Tips to Improve Your Credit Score
- Are you facing challenges in getting a credit card because of a low CIBIL score?
- No worries! I’ll show you how you can still get a credit card, even if your credit score is low.
- I’ll also share a proven tip to instantly boost your credit score. This tip helped my friend, and I’m sure it can help you too.
Types of Credit Cards:
- Unsecured Credit Cards
- These are standard credit cards issued by banks without requiring any security deposit.
- To qualify, you need:
- A steady income (Job or Business)
- A credit score of 750+.
- Secured Credit Cards
- If your credit score is poor or if you don’t have a steady income, you can get a secured credit card.
- This card is secured with a fixed deposit (FD), which the bank uses as collateral.
- How it works:
- For example, if you have a ₹1,00,000 FD, the bank will issue you a card with 90% of the FD amount as the limit (₹90,000).
- This helps you build a credit history, and your credit score improves over time.
Steps to Get a Secured Credit Card:
- Step 1: Visit your bank and ask for a secured credit card.
- Step 2: Deposit the amount (₹1,00,000 FD) at the bank.
- Step 3: The bank issues a credit card with 90% of the deposit as your credit limit.
- Step 4: Use the card wisely:
- Spend less than 30% of the credit limit.
- Always pay your bills on time.
Improving Your CIBIL Score:
- If your credit score is low, don’t worry, here’s a simple tip:
- Pay at least the minimum amount due on time each month.
- Never miss a payment! This will gradually improve your score.
- Over time, as you consistently make payments on time, your score will increase automatically.
- Important Tip: Don’t exceed 30% of your credit limit to maintain a healthy score.
Additional Tips to Boost Your Credit Score:
- Make Small Transactions Regularly:
- Even if you don’t need the credit card, make small purchases and pay them off regularly.
- Always Pay On Time:
- Timely payments on your credit card bills will help in improving your CIBIL score.
Best Credit Cards with FD:
- SBM Bank Credit Card:
- Minimum deposit: ₹2,000
- Benefits: Lifetime free, cashback on UPI transactions, and more.
- SBI Credit Card:
- Minimum deposit: ₹25,000
- Benefits: Cashback on spending, discounts on fuel, and no annual fee for the first 4 years.
- ICICI Bank Instant Platinum Card:
- Minimum deposit: ₹50,000
- Benefits: Rewards points on every spend, no forex markup fee, and exclusive restaurant offers.
- IDFC First Wow Credit Card:
- Minimum deposit: ₹20,000
- Benefits: Rewards points, no annual fee, and discounts on international spending.
Conclusion:
- Even if your CIBIL score is low or you don’t have a steady income, you can still get a credit card by using the secured credit card method.
- Follow the steps I mentioned, and you’ll not only get your credit card but also improve your credit score.
- Consistent payments on time will help you build your credit history and make you eligible for better cards in the future.