Many assume that obtaining a credit card with a low CIBIL score is impossible. In reality, several financial institutions offer credit card options designed for people with imperfect credit. These cards can provide immediate access to credit while giving you the opportunity to rebuild your credit history and eventually qualify for better cards. The following overview explains the main options and practical steps to improve your credit score.
Credit Card Options
Traditionally, credit cards are issued to applicants with fair to excellent credit. If your CIBIL score is low, however, you still have viable paths to obtain a card and gradually improve your credit profile. Common routes include secured credit cards, cards issued by your primary bank, and unsecured cards that carry higher fees.
Secured Credit Card
Unlike standard unsecured cards that rely solely on your creditworthiness, secured credit cards require a cash deposit—often held as a fixed deposit—as collateral. This deposit typically determines your credit limit and provides the lender with security in case of default. Key features include:
- Collateralized by a fixed deposit
- Credit limit usually linked to the deposit amount
- Interest on the fixed deposit may still accrue while you use the card
Using a secured card responsibly—keeping balances low and paying on time—can positively affect your credit history and help raise your CIBIL score over time.
Credit Cards Issued by Your Primary Bank
If you have a long-standing relationship with a bank, that institution may be willing to issue a basic or starter credit card even when you have little or no credit history. Banks often consider factors beyond your credit score, such as account balance, tenure, salary credits, or transaction history. For many people, a card from their primary bank is a practical way to begin building credit while relying on an institution that already knows their financial behavior.
Unsecured Credit Cards with Higher Fees
Some issuers offer unsecured credit cards to applicants with lower credit scores but offset the increased risk by charging higher fees, interest rates, or maintenance charges. These cards do not require a deposit but tend to be more expensive to carry. While not ideal long-term, they can be used strategically to demonstrate on-time payments and responsible usage, enabling a transition to more competitive cards later.
How to Improve Credit Score
Obtaining a credit card with a low CIBIL score should be viewed as a first step. Improving your score is essential to access cards with better features and lower costs. The following actions are effective and widely recommended:
- Always pay credit card dues, EMIs, and bills on time to show consistent repayment behavior.
- Maintain your credit utilization ratio below 35% of your available limit to demonstrate prudent use of credit.
- Avoid submitting multiple credit applications in a short period, since repeated hard inquiries can lower your score.
- Check your credit report regularly to spot and correct any inaccuracies that could be dragging your score down.
Keep in mind that credit cards often carry higher interest rates than personal loans. If financing needs can be met with a personal loan, that option may come with lower borrowing costs. For immediate cash needs, consider lenders and products that fit your circumstances, while comparing interest rates and fees carefully.
FAQs on Credit Cards with Poor Credit Scores
How can I get a credit card if my CIBIL score is low?
Issuers may offer cards if you provide collateral such as a fixed deposit, if you have a long-standing relationship with your primary bank, or if you accept higher fees on unsecured products. Using any of these cards responsibly can help you improve your credit profile and qualify for better options later.
What credit card options are available for those with a low CIBIL score?
The main options are secured credit cards backed by a deposit, unsecured cards that charge higher fees or interest, and starter cards from your primary bank based on your existing relationship.
Do credit cards for low CIBIL scores have higher fees or interest rates?
Yes. Cards available to those with lower scores often come with higher fees and interest rates to compensate lenders for increased risk. Secured cards may have lower ongoing charges but require a deposit upfront.
Which credit card is the easiest to obtain with bad credit?
A secured credit card backed by a fixed deposit is typically the most accessible option for rebuilding credit. It allows you to demonstrate timely repayments and responsible credit use, which can raise your CIBIL score over time.