When one applies for a credit card, it is important to know that the rejection or approval of one's credit card depends largely on the credit score. Credit Information Bureau India Limited (CIBIL) credit score is a value that is calculated on the basis of one's credit files that has the individual's creditworthiness. It carries details of the credit that one has availed throughout time. Details include particulars like the amount of credit taken and how much of it has been repaid and how. In case the person has missed making even a single payment or has paid off a loan, it will reflect on the credit score. CIBIL calculates credit scores on the basis of at least 6 months of monetary history of the individual.
Credit score set by CIBIL ranges from 300 to 900. The following are the various divisions of credit scores that determine the creditworthiness of the individual:
There are certain eligibility criteria that an individual needs to meet in order to avail a credit card. Some of these parameters are as follows:
Generally, borrowers dismiss the idea of getting a secured credit card because it demands a security deposit that is to be made against the credit limit. Not many understand that a secured credit card that is accountable to the major bureaus is better than not owning a credit card at all. While an average credit score is always better than a bad one, one can use a secured credit card to make their credit history healthy. After a year of timely payments, a lot of secured credit cards can be changed to unsecured credit cards. There are plenty of credit cards available in the market that are targeted at people with a fair credit score. Here are a few tips on how to get a credit card with an average credit score:
Though there are quite a few credit cards that are available for people with a fair credit score, listed below are few good options:
Improving one's credit score doesn't happen overnight. It takes time. Here are a few tips that can help one in boosting their credit score:
Although an average credit score is not as bad as a poor credit score, it is still advisable to aim to keep the credit score healthy. This not only creates a good financial impression on the lending organizations but also helps in leading a worry-free life.
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