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What is the Minimum CIBIL Score Required for a Credit Card?

December 26, 2023 • 374 views

Credit cards are a popular financial instrument that helps you manage your expenses and can also play a key role in increasing your credit score as well. But do you know the minimum CIBIL score for credit card? And does it impact the chances of your credit card approval? Let’s understand why financial institutions check your credit score for credit card approval, what minimum CIBIL score is required, and how your CIBIL score can impact your credit card approval. Keep reading!

Why do Banks/NBFCs Check Credit Scores for Credit Card Approvals?

Financial institutions check the creditworthiness of potential borrowers before approving their credit cards or other forms of credit, such as Personal Loans. This involves determining your repayment capability, checking your repayment history, and credit utilisation. 
When you apply for a credit card, banks/NBFCs perform a hard enquiry on your credit profile to check your creditworthiness.  Based on these factors, they decide whether to approve your credit card application or not.

Impact of CIBIL Score for Credit Card Approval

You must have a good CIBIL score to be eligible for a credit card. A credit score ranges from 300 to 900, and 650 and above is considered good by lenders. It is important to meet the minimum eligibility criteria, such as age, income, working experience, and citizenship to qualify for credit cards. You are also required to submit your PAN Card, Aadhaar Card, and other KYC documents for further processing. 

Minimum CIBIL Score for Credit Card Approval

The minimum credit score for a credit card depends on your chosen lender and your credit profile. Generally, it is advised that you must have a good credit score of 650 and above. This can also help in expediting your application process.

ALSO READ :- Top 8 Unknown Facts About CIBIL Score…!

To Conclude

Maintaining a good CIBIL/credit score is very important, as financial institutions consider it while checking your creditworthiness. Repayment history, debt repayment behaviour, and the utilisation of credit are the other factors that a lender checks for before approving your credit card application. So, make sure you pay all your EMIs on time and maintain a good credit score.

Frequently Asked Questions About CIBIL Score and Credit Card

1.    What CIBIL score is needed to get a credit card?
You must maintain a good credit score of 650 and above for a smooth application process. 
2.    Does having multiple credit cards improve your credit score?
When calculating your credit score, the number of credit cards you own is also considered because using multiple cards might lower your credit utilisation ratio. If you use two credit cards and your costs stay the same, using more than one credit card can result in a lower credit utilisation. This can help you increase your credit score. It is important to note that you clear all outstanding payments on time.
3.    How can I increase my CIBIL score quickly? 
There are various ways to increase your CIBIL score, some of them are mentioned below:
1.    Debt consolidation
2.    Low credit utilisation
3.    Timely EMI payments

4.    Can I get a credit card if I have a low CIBIL score?
Yes, you can get a credit card if you have a low credit score from your bank if they find you a potential customer. But it may involve high interest rates and stringent loan terms.
5.    Can I get a credit card with a 650 score? 
You are eligible for a credit card if your credit score is 650 but that might reduce the number of potential lenders from whom you can avail of this service.

Disclaimer

We take utmost care to provide information based on internal data and reliable sources. However, this article and associated web pages provide generic information for reference purposes only. Readers must make an informed decision by reviewing the products offered and the terms and conditions. Loan disbursal is at the sole discretion of Poonawalla Fincorp.
*Terms and Conditions apply

poonawalla fincorp team

Poonawalla Fincorp Team

We are a team of expert writers and editors passionate about providing our readers with authentic and valuable information on finance. Our aim is to simplify financial and finance-related concepts. We strive to help our readers become more aware and empowered to make informed financial decisions.

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