Best Credit Cards for Low CIBIL Score
Initially, it can be very hard to build your credit score from the start and get a credit card with a low or no credit score. However, some companies and financial services cater to this credit card market and offer instant & fast approval credit cards with low credit Some of these companies issue credit cards against fixed deposits (FDs) as collateral. Usually, they have the same credit limit as the amount in the fixed deposits (FDs). It minimizes the risk to the credit provider.
Some banks and financial institutions offer credit cards to users who have low Cibil scores. Cards with Low Credit Score come with higher interest rates or lower credit limits, but they can be a good option for you to rebuild your credit. You can also apply for a credit card with your friends and family.
You Can Use the Following Cards to Make Your Credit Score:
One Credit Card:
One Credit Card has no joining fee or annual fee. it is promoted as the India’s best metal card. You can get this credit card without a credit history and a low credit score. This credit card is one of the best Credit Cards available which is approved instantly with a low credit score.
One Credit Card Features:
The card comes with a touchless payment option. With One Credit Card, you get 5X rewards on the top 2 spend categories of the month. The card has an annual percentage rate of 41.88%. The Annual Percentage Rate (APR) for credit cards is the yearly cost of borrowing, including interest and fees, applied to any unpaid balance. The card can be activated within 5 minutes. You can also share your one-card limit with family members.
Rupicard:
The Rupicard is designed for people who want to start their credit card journey. People with a zero credit score or without any income proof can also get this credit card. The Rupicard can be issued against the Fixed Deposit (FD). With Rupicard, you can get 90% of the Fixed Deposit (FD) value as your credit limit and get credit cards with a low credit score. Rupicard can help you rebuild your credit score.
Rupicard Features-
- You can get this card with a minimum Fixed Deposit (FD) amount of 5000 only.
- Rupicard offers you 45 days of credit free period.
- You also earn up to 7% interest on your FD.
Axis Bank Insta Easy Credit Card-
This card is good for people with low credit scores. You can get this credit card against your FD with minimum documentation. The card offers you a credit limit of up to 80% value of FD.
Features-
- You can withdraw 100% of the credit limit on your first day.
- You do not have to have any income proof to apply for this card.
- Axis Bank Insta Easy Credit Card has no annual fee or joining fee.
HDFC MoneyBack Credit Card:
Salaried people with a salary of ₹20,000 or more from the age of 21 to 60 can apply for HDFC MoneyBack Credit Card. For self-employed people from the age of 21 yrs. & Max 65 with ITR > ₹6.0 lakhs per annum can apply for this credit card.
Features-
- With HDFC MoneyBack Credit Card, you get 10X CashPoints (3.3% valueback) on Amazon, BigBasket, Flipkart, Reliance Smart SuperStore & Swiggy.
- You also get a 1% fuel surcharge waiver on fuel transactions of the value of ₹400 to ₹5000.
- You get a 500 rupee gift voucher every quarter on the spending of ₹50,000 & more.
- HDFC Bank MoneyBack+ Credit Card comes with the facility of contactless payments for a maximum payment of ₹5000 for a single transaction.
- You need to have a credit score of 700 to get this card.
HDFC Bank Freedom Credit:
A salaried person aged 21 to 60 with a salary of 12000 or above can apply for this credit card, and a self-employed person with an income ITR > ₹6.0 lakhs per annum and age 21 to 65 can apply for this card. You need to have a credit score of 700 or more to get this card.
Features-
- The HDFC Bank Freedom Credit card offers an interest-free period of up to 50 days from the date of purchase.
- HDFC Bank Freedom Credit Card offers 500 CashPoints on payment of the membership fee.
- With HDFC Bank Freedom Credit card, you get 10X CashPoints on shopping from Big Basket, BookMyShow, OYO, Swiggy, & Uber, with a cashback cap of 2,500 CashPoints every month.
- You can apply for this credit card with no annual fee.
What is a credit score?
Credit score, also known as the CIBIL score, is the representation of a person’s credit trustworthiness. Credit score ranges between 300 to 850. A low credit score means low trustworthiness. Here is how we can divide credit scores based on trustworthiness:
- Excellent (750–850): You’re very likely to get loans with the best interest rates.
- Good (700–749): You’ll get good loans, just not at the best interest rates.
- Fair (650–699): You might have to pay higher interest rates or tougher loan conditions.
- Poor (550–649): It could be harder to get a loan, and if you do, it might come with high interest rates.
- Very Poor (300–549): It’s difficult to get approved for credit or loans at all.
ALSO READ: What is Credit Score?
How to Rebuild Your Credit Score
- Pay off your debt.
- Reduce credit utilization ratio.
- Make sure to make all the payments on time, such as loans and bills.
- Avoid Multiple Credit Applications in a Short period
Things You Should Know Before Applying for a Credit Card:
Check Your Credit Score:
Most credit cards have specific credit score requirements, so check before applying for a new credit card. Otherwise, you can go for Credit Cards with Low Credit Score
Understand the Fees:
Credit cards come with multiple fees and additional charges like annual fees, and foreign transaction fees. You can also go with credit cards, which come with no annual fee.
Rewards and Benefits-
Many credit cards offer exclusive rewards in specific categories. So choose the card which is most suitable for your needs and lifestyle.
Credit Limit-
A higher credit limit provides you more flexibility to spend more. But it also increases the temptation to overspend. You can start with the lower-limit credit card and then go with the higher-limit.
Review Terms and Conditions:
A credit card is a very important financial tool in this digital era. You should carefully read and understand the terms and conditions carefully.
Conclusion
In conclusion, it can be hard for you to get a traditional credit card that offers you the best rewards and interest rates. But still, you can get these cards with a fixed deposit, as collateral. Then use these cards to build your credit score to apply for the best credit cards that offer you excellent offers and rewards. Some secured credit cards by SBI Bank and Axis Bank come with exciting rewards and features. You can improve your credit score with these credit cards by paying bills on time and keeping the card utilization ratio low. Trest these cards as opportunities to build an excellent credit history and improve your credit score. By careful financial planning, you will be able to qualify for better credit cards over time.
ALSO READ: 10 Best Credit Cards for Beginners
FAQ
- What can be considered as a good credit score?
Answer: Credit scores may vary for different companies. But a credit score above 700 is considered good.
- Can i get a loan with low cibil score?
Answer: Some banks provide loans if you have a low credit score but they charge a significantly higher interest rate.
- Which credit card is easiest to get?
Answer: Secured credit cards are the easiest to get. You can even get some secured credit cards in 5 minutes by applying online by putting your fixed deposit as collateral.
- How can I improve my credit score?
Answer: You can improve your credit score by paying your credit card bills on time, maintaining the credit Utilisation ratio, or avoiding multiple credit card applications in a short period.
- What is the reason for the bad credit score?
Answer: Not paying credit card bills and late payments can be primary reasons behind your low credit score.
