Everything You Need to Know About Obtaining a Credit Card Without CIBIL Score

Everything You Need to Know About Obtaining a Credit Card Without CIBIL Score

Credit cards have revolutionized the way people make purchases and manage their finances. They offer rewards points, special deals, and discounts both online and offline, as well as interest-free borrowing. However, many people with low income and CIBIL scores are often denied credit card applications. Despite this, credit cards have become an essential part of daily life.

Over time, credit card usage has become a crucial factor in building a good credit score. When used responsibly, credit cards can help individuals improve their financial situation and credit rating.

Did you know?

Banks and non-banking financial organizations consider a CIBIL score of 750 or above as optimal for credit cards.

What Exactly Is a CIBIL Score?

A person's credit score is obtained through their "Credit Information Report," which summarizes their payment history for loans and credit cards from banks and financial organizations. This report is also known as a credit report. It is represented by a three-digit number ranging from 300 to 900. The closer the number is to 900, the better the individual's credit profile is perceived by lenders.

Also Read: The Untold Truth About Pre-approved Credit Cards

Role of CIBIL Score to Issue a Credit Card

Before issuing credit cards, banks and financial institutions verify a person's CIBIL or credit score. The creditworthiness of the applicant is the sole criterion for determining whether a bank will provide a credit card or not. Individuals with a poor loan repayment or credit history are discouraged from applying for credit cards without a CIBIL score, as they pose a risk of defaulting on their debts.

Banks review a person's credit history to assess their ability to afford a credit card without defaulting on payments. When banks request credit reports and scores from TransUnion CIBIL Limited, they use these credit scores to verify an individual's payment history and existing loans or credit cards.

A person's CIBIL score can determine their ability to make timely credit card payments. Not having a credit history can be seen as a negative factor, as it is sometimes associated with a poor credit history.

A Standard Credit Card Needs At Least Credit Score

Ideally, a person should have a CIBIL score of 750 or above to qualify for a standard credit card. However, finding a low CIBIL score credit card can be challenging, as most banks and financial institutions have similar requirements. 

Credit card issuers often provide credit cards to individuals with credit scores in the mentioned range. However, there are no strict rules for credit cards, as banks and financial institutions are willing to provide credit to those with poor credit histories.

Ways to Obtain a Credit Card Without CIBIL Score

Obtaining a conventional credit card without a credit score or with a poor credit score can be challenging but not impossible.

Individuals who want a standard credit card without a CIBIL score can consider the following options:

Also Read: What differentiates your credit score from the CIBIL credit rank?

Secured Credit Card Option

A secured credit card is the simplest option for anyone looking to get a credit card without an established credit history. It is available to all applicants, regardless of their credit score. A secured credit card can be used to improve a person's credit score, also known as the CIBIL score.

To obtain a secured credit card, all that is required is to create a fixed deposit account with the desired bank and make a deposit into the account.

Obtain an Additional Credit Card

Another way to improve credit score is by getting an add-on or supplemental credit card. If a family member has a primary credit card, individuals can get an add-on credit card for themselves.  

An add-on credit card offers the same perks and features as the primary credit card, but the credit limit is shared between the original card and the add-on card. This allows users to take advantage of the add-on card's benefits in unexpected situations, such as a financial emergency.

A Credit Card in Conjunction With a Savings Account

Some central banks in the country offer credit cards in conjunction with a savings account. 

To obtain a credit card based on the savings account, individuals need to deposit a specific amount of money into the bank.

Obtain a Prepaid Credit Card

Individuals with a poor credit score can consider applying for and using a prepaid credit card instead of dealing with the hassle of applying for a standard credit card from banks and financial institutions.  

Leading banks in India offer prepaid credit cards to individuals with low CIBIL scores or no credit history. These cards can be used by loading them with a certain amount of money, similar to a prepaid mobile connection.

List of Some Credit Cards Accepted With a Fixed Deposit

CREDIT CARDS

FIXED DEPOSIT (MIN. AMOUNT)

ICICI Bank (Instant Platinum Credit Card) 

₹20,000

Axis Bank (Insta Easy Credit Card) 

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