Know about CIBIL score required for a credit card
Posted by IndiaLends on April 28th, 2020
Credit Cards are considered as one of indispensable requirement nowadays. It is one of the best ways to improve your budget and meeting immediate financial requirements. Not only that, if you are new to credit score then you must apply for a credit card to build up your score.
Relation of Credit score and credit applications
Getting a credit card approval process is much simpler. All you need to furnish is, two documents, one is identity proof and address proof. Some of the examples of identity proof and address proof are your PAN card, voter id, Passport, Aadhaar Card. After submitting the essential document, the bank will check your CIBIL score. It is a way of analyzing your record of late payments and defaults.
We all know that a credit card is an unsecured form of credit given by the banks. So, approval of the same is done after checking the creditworthiness of a credit card applicant. So, the credit card issuer avoids approving the application of credit cards for low CIBIL score applicants.
What should be the minimum CIBIL score for a Credit card approval?
A CIBIL score falls within the range of 300-900. Any score in the range of 700 upwards is considered as a good CIBIL score for a credit card.
What benefits one get in credit card who are having a good CIBIL score:
How to get a credit card for a low CIBIL score applicant
Most issuers refrain from giving out credit cards to those who are having a poor credit history and credit score. This is because the risk or delayed payments or defaulting on payments are high. Sometimes people are being pushed into negative payment patterns due to genuine reasons e.g. medical emergencies or loss of employment, which impair their inflow of funds. In order to come up with the curve and rebuild creditworthiness, banks offer secured credit cards.
Secured credit cards are credit cards that were offered against a fixed deposit. In the case of Fixed deposits by making timely payments on credit cards, cardholders can, over a period, rebuild good credit history. By choosing this option even if you were having a low credit score or no credit history, you can avail of the benefits of the best credit cards.Top Searches - Trending Searches - New Articles - Top Articles - Trending Articles - Featured Articles - Top Members
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