We all have overhead expenses that may or may not get covered by our salaries alone, be it buying our dream vehicle, taking care of extra expenses incurred during a wedding, or going for an additional educational course that will help us upskill. This is when a credit card comes in handy. But for anyone to avail credit card services, one may need a good credit score.

A credit score, also known as the CIBIL score, is crucial for accessing a candidate’s loan/credit card bill repayment capacity. Sometimes unforeseen circumstances, such as not having a credit history or financial missteps, can lead to a low CIBIL score, making it challenging to obtain a credit card. But fret not! Follow this guide on how to get a credit card with a low CIBIL score.

Understanding CIBIL Score and its Importance

Before we dive deep into how the CIBIL score affects an individual’s finances, let us understand what a CIBIL score is and why it matters. Our CIBIL score is a numerical representation of your creditworthiness based on our credit history. It ranges from 300 to 900, with a higher score indicating lower credit risk. Lenders, including banks and financial institutions, use this score to evaluate our credit history and our repayment capacity when applying for a credit card or loan.

Also Read: How to Check CIBIL Score with Aadhar Card? 

Assessing Our Current Situation

The first step is to assess our current financial situation. We need to obtain a copy of our credit report to understand why our CIBIL score is low. A lot of banks and lenders have third-party companies verifying our credit history. Identifying any discrepancies or errors in the report is crucial, as rectifying them can help improve our score. We can obtain our credit report from credit bureaus like CIBIL, Equifax, or Experian.

Availing a Credit Card from Airtel Finance

If one is planning to apply for a credit card through Airtel Finance, then following these easy steps will help us complete the application process:

1.   Download the Airtel Thanks App or visit the Airtel Finance page.
2.   Go to the Shop section and click on the credit card banner.
3.   Select the Apply Now tab and fill out the application form.
4.   Complete digital KYC by providing all the documents required to complete the process.
5.   The Airtel credit card will be delivered to our address once the application is processed.

If you ever need a credit card with a low CIBIL score, then checking out the eligibility criteria by Airtel Finance might turn beneficial as their process is simple and hassle-free.

Also Read:  Personal Loan for CIBIL Score of 600  

Opt for Secured Credit Cards

Secured credit cards can be a boon for individuals with a low CIBIL score. Unlike traditional credit cards, secured cards require a security deposit, which serves as collateral. The credit limit is usually determined by the amount of the security deposit. By responsibly using a secured credit card and making timely payments, we can gradually rebuild our credit score. 

Explore Credit Cards for Low CIBIL Score from Your Own Bank

Several banks and financial institutions offer a credit card with low CIBIL score.

These cards often come with higher interest rates and lower credit limits, but they can be a stepping stone toward improving our creditworthiness. Researching and comparing the features of these cards can help us find the most suitable option.

Apply for Add-On or Supplementary Cards

If we have a family member or spouse with a good credit score, we can explore the option of applying for an add-on or supplementary credit card. Since the primary cardholder is responsible for the payments, banks may be more lenient in issuing these cards, even to individuals with low CIBIL scores. However, it’s essential to use these cards responsibly to avoid negatively impacting the primary cardholder’s credit score.

Demonstrate Financial Stability

Lenders are not solely reliant on our CIBIL score; they also consider other factors like income stability and employment history. Providing proof of a steady income through salary slips, bank statements, or income tax returns can strengthen our credit card application. Additionally, reducing existing debt and maintaining a healthy debt-to-income ratio can improve our chances of approval.

Getting a Credit Card from Your Own Bank

It is easier to get a credit card with a low CIBIL score, for free, if it has been issued by our own bank. Banks understand that not every customer will have a credit history but they have a good knowledge of our spending history and so they might provide us with a free credit card at a reasonably low interest rate, depending on our lifestyle and finances. 

Securing a credit card with a low CIBIL score in India may seem daunting, but it’s not impossible. By understanding our financial situation, exploring alternative options, and demonstrating responsible financial behaviour, we can gradually improve our creditworthiness. Remember, rebuilding credit takes time and patience, but with perseverance, we can achieve our financial goals.