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What is the minimum credit score required for Kotak Mahindra Bank credit cards?

Kotak Mahindra Bank has set many eligibility parameters for a person to be eligible for the credit cards of the bank. These parameters include the age of the applicant, income of the applicant, relationship with the bank, etc. Among these eligibility parameters, a crucial factor is the credit score issued by CIBIL™. The bank requires the applicants to have a CIBIL™ of 750 for the applicants to be eligible for the credit cards of the bank. A credit score lower than that may result in the rejection of the credit card application of the applicant.

The bank may permit sanction of the credit card application at its discretion even if the credit score of the applicant is lower than the required standards. The applicant in such case will have to prove eligibility and their creditworthiness through other means like

  • By providing additional documents related to proof of stable employment 
  • By providing additional documents related to proof of sufficient income to support the credit card
  • By proving that there are no external or outstanding liabilities in the name of the applicant.

What is a credit score?

The credit score of a person is the assessment of the creditworthiness of a person. The creditworthiness is used to determine the eligible credit limit of the applicant as well as the repayment capacity of the person. The credit score in India is issued by four credit rating agencies for individuals and businesses. These agencies are,

  • CIBIL™
  • Equifax
  • Experian
  • CRIF Highmark

Kotak Mahindra Bank refers to the credit score issued by CIBIL™ as a point of reference for the issue of credit cards. The credit score issued by CIBIL™ is from 300 to 900. A credit score closer to 300 is considered to be bad by banks and financial institutions. A credit score closer to 900 is considered to be good by lenders and the credit card application or the loan application is sanctioned relatively easily in such cases.

What is the importance of a credit score?

Credit cards are an essential component that is reviewed by the lenders while sanctioning a credit card application. Hence, the applicants have to ensure that they maintain their credit score. There are many other reasons for maintaining the credit score of any person. Some of such examples are mentioned below.

  • The applicant can be eligible for a relatively lower rate of interest.
  • The bank may permit sanction of a higher loan amount if required by the applicant.
  • Such applicant can negotiate better with regards to the processing charges levied on the loan
  • The bank will process the loan faster without any hassles in approval.

About Kotak Mahindra Bank

Kotak Mahindra Bank is considered to be one of the top three private sector banks in India. The bank provides many facilities to its national and international customers. Kotak Mahindra Bank was the first Non-Banking Finance Company to be converted to a bank.

The bank has many credit cards to offer to its customers. The eligibility for credit cards depends on the type of cards to be issued as well as the various parameters set by the bank in this regard. One of the essential parameter set by the bank is the credit score of the applicant. The credit score of a person is the essential measure for a credit card.

FAQs

1. Can a senior citizen get credit cards from Kotak Mahindra Bank?

A. Yes a person up to the age of 65 years is eligible for the credit cards of the bank.

2. Is a credit score of 800 good for credit cards of the bank?

A. Yes. A credit score issued by CIBIL™ over 750 is considered valid or acceptable for the credit cards of the bank.

3. What are the factors that may reduce the credit score of a person?

A. There are many factors that may result in the reduction of the credit score of a person, some examples of such factors are mentioned below.

  • Frequently paying only the minimum amount due on credit cards.
  • 100% utilization or overutilization of credit limit, i.e. beyond the ideal limit of 30% maximum.
  • Failure in reporting any errors and fraudulent charges present in the credit report of the person.
  • Closing an older credit card especially if it is the only line of credit.
  • Withdrawal of cash against the credit card.
  • Applying for multiple credit cards at the same time or too frequently.
  • Delay or default in payment of credit card dues or loan EMIs.
  • Applying for multiple loans through multiple lenders.

4. Does the payment of utilities through credit cards boost the credit score of the applicant?

A. Yes. It is often noticed that payment of utilities through credit cards boost the credit score of the applicant i.e. has a positive impact on it.

5. For how long does the credit report show any delays in payment of credit card dues?

A. A delay in payment of credit card dues is reflected in the credit report for a period of three years.

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