How much of a CIBIL score is required for a credit card

How much of a CIBIL score is required for a credit card

Each bank/credit card company has its own criteria for approving an application for a card. you have a credit score of 750 or above, you stand a good chance of being approved for a card.

HOW MUCH OF A CIBIL SCORE IS REQUIRED FOR A CREDIT CARD

There is no fixed minimum credit score to be eligible for a credit card. Each bank/credit card company has its own criteria for approving an application for a card. In general, however, if you have a credit score of 750 or above, you stand a good chance of being approved for a card.

It is possible to be approved for a card with a score of less than 750, but you may be subject to less favourable terms and conditions like, for example, a higher interest rate or added fees. The lower your score, the greater your chance of being rejected. If you have a score of less than 650, it will be very difficult to be approved for a card.

Another disadvantage of applying for a credit card with a low score is that each time your application is rejected, it causes your score to drop. Applying for credit cards when you have a low score means that you face the possibility of repeated rejections and a continuous drop in your score.

Therefore, it is a good idea to check your credit score before you apply for a new credit card so that you have time to improve your score and ensure that your application is approved.

Why do banks check your credit score before issuing a credit card?

When you apply for a credit card, lenders want to know if you will make your monthly payments on time. They will access your credit report and credit score to check if you have a good track record of making your payments on time. If you have a good score, they are satisfied that you are a low risk customer with a low probability of defaulting on your obligations and will be inclined to approve of your application.

Conversely, if you have a low score, it signifies that you might not have demonstrated responsible repayment behaviour – lenders might be unwilling to lend to customers with a poor credit score, as they want to safeguard their money against potential default.

How to maintain a good credit score

Do not exceed 50% of your credit limit: Not only should you never exceed your credit limit, you should ensure that you do not exceed 50% of the limit. Consistently spending more than 50% signifies that you have a problem with spending discipline and might not have enough money left over from your income to fulfil your repayment obligations.

Make timely payments: On time and full payments are one of the best ways to maintain a good credit score and history. Try and pay off your monthly card bill in full and on time - this one action itself will have a substantial positive impact on your credit score.  

Do not apply for multiple cards within a short period of time:  If you apply for too many credit cards in a short period of time, lenders may also consider you to be ‘hungry’ for credit. If you have too many applications without corresponding approvals, your credit score will be affected.

Add a Comment

Thanks for your comment. Your comments will be posted on admin approval.

Comments (1)

Ranjeet Kumar


Commented on 27, January , 2016

Good Article, But the Bank representative should also has proper knowledge regarding this, because every time I go to SBI branch they request us to please fill this form for Credit card and credit card will dispatch shortly at your address. After applied the massage reached us as per CIBIL you are currently not eligible, please try after some time.

Check your Free Credit Score Online