Santa Claus comes around just once a year. In the meantime, there are Credit Cards.
  • Credit Card Without Cibil Score

    There is no denying the fact that with the advent of credit cards, life has become easier for individuals with regard to availing things and paying for it at a later date. As such, it has become an indispensable part of an individual’s life. The use of credit card has varied with the passing of years and is currently regarded as one of the deciding factors of a good credit score. Moreover, the card enables the cardholder to improve his/her budget as well as their credit rating, if used effectively.

    What is CIBIL score?

    CIBIL score which is also known as credit score is generated after the Credit Information Report (CIR) summarizes the payment history of the individual’s payment history of loans and credit cards that he/she might have availed from banks and financial institutions. It is a three-digit number that ranges between 300 and 900. The closer the number is to 900, the stronger is the credit profile of the individual.

    Why Do Banks And Financial Institutions Check Cibil Score Before Issuing A Credit Card?

    Banks and financial institutions check the CIBIL or credit score of the individual before issuing credit cards in their names is because credit cards are a form of unsecured lending that banks in the country provide to the applicant based solely on the applicant’s creditworthiness. Banks avoid providing individuals with credit cards who have a bad history of repaying loans or has a bad credit history as it involves the risk of defaults which can ultimately lead to losses for them. As such, banks use the simple way to looking at the credit history of the individual in a bid to ascertain whether he/she is financial capable of handling a credit card without defaulting on the payment due. All the credit reports and scores of the individual who has requested for a credit card are provided to the bank by TransUnion CIBIL Limited when the bank requests the information. Banks analyse the individuals record of late payments and defaults as well as the records of any loans or credit cards that might be currently held by the individual by checking their credit score. Through the CIBIL score, banks gauge the individuals diligence towards paying credit card bills. It needs to be mentioned that there have instances when banks have considered having no credit history also as poor credit history.

    Minimum Cibil Score Required To Avail A Regular Credit Card

    As mentioned earlier, CIBIL scores of individuals are generally in the range of 300-900. To have a good CIBIL score, it is always better to have a number that is close of 900. Ideally, a good CIBIL score for a individual falls in the range of 700 and above. However, to pinpoint precisely as to what is the minimum CIBIL score required to avail a regular credit card is a tough ask as most banks and financial institutions follow a similar pattern. Usually, banks accept a CIBIL score in the range of 700-750 and above to issue a credit card to an individual. However, there is no hard and fast rule to it as banks and financial institutions offer certain credit cards to individuals with low credit score as well.

    How To Get A Credit Card Without Cibil Score?

    For an individual who has no CIBIL score or has a low CIBIL score, it is quite difficult to get a regular credit card, however it is not impossible.

    To get a regular credit card without having a CIBIL score, an individual can try doing the below mentioned things:

    • Get a secured credit card: This is the most easy and convenient process that an individual can turn to while looking to getting a credit card without having a CIBIL score. An unsecured credit card can be availed by all those applicants who have no credit score or possess a low credit score. The secured credit card can be availed in a bid to build up the individual’s CIBIL score. To avail a secured credit card, all the individual needs to do is open a fixed deposit account with a bank from which he/she wishes to avail the secured card and make a deposit. The bank will issue a credit card to the individual with a credit limit between 50 to 100 percent of the total deposit made as per their banking terms and conditions.
    • Get an add-on credit card: Availing an add-on or supplementary credit card is another way for an individual to build his/her CIBIL score. An add-on credit card can be availed by the individual if he/she has a primary credit cardholder in the family. A add-on credit card comes with similar benefits and features as the primary credit card which the family member possesses. However, the credit limit that was on the primary credit card is now shared between both the cards, i,e primary and the add-on credit cards. Irrespective of that, the individual can still avail the benefits of the add-on credit card as well as use it during unforeseen times like financial emergency.
    • Credit card against savings account: Credit cards are offered against savings account only by some of the major banks in the country. This is another way an individual can get himself/herself a credit card without having a CIBIL score. To get a credit card based on the savings account that the individual possesses, he/she will have to deposit a certain amount of money in the account for the bank to provide him/her with a credit card.
    • Avail a prepaid credit card: Another way of getting a regular credit card from banks and financial institutions without possessing a CIBIL score is by availing a prepaid credit card. This is a good idea for individuals who have a bad credit score. Prepaid credit cards are offered by all the major banks in India to people who possess a bad CIBIL score or are without a credit history. A prepaid credit card can be used by individuals by putting in a certain amount of money and using it just like an individual uses a prepaid mobile connection.

    Doing the above mentioned things can help an individual in availing the benefits of a credit card without having a CIBIL score as well as enable them in building their CIBIL score to help them avail a regular credit card. Though there are ways to avail a credit card without even having a CIBIL score, it is better to use the options only to build up one’s credit score to avail other credit facilities provided by banks and financial institutions that exist in the country.

    FAQs on How to Get Credit Card without Cibil Score

    1. How to build a CIBIL from zero without a credit card in India?

      An individual can build his/her CIBIL score without possessing a credit card by availing a secured credit card, add-on card, prepaid credit card etc and using it properly.

    2. Does credit card usage affects CIBIL score?

      Yes, credit card usage does affects the CIBIL score of an individual. If the credit card is used well, the CIBIL score is built up. If it is not managed well, the CIBIL score takes a hammering.

    3. Does opting for EMI for credit card payment affect my CIBIL score?

      No, it does not. However, if the EMIs are not paid on the due dates it does have an impact on the CIBIL score.

    4. How to increase my credit card limit?

      You can increase the credit limit my making sure that you handle the credit responsibly. On doing so, the credit limit is increased automatically by the credit card issuers. You can also request for the credit limit to be increased by contacting the credit card issuer.

    5. Will getting my first credit card increase my CIBIL score?

      Yes. However after availing the credit card the individual needs to make sure that the credit card is used responsibly with the utilization percent preferably kept to 20-30 percent of the available credit limit.

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