Eligibility Criteria For Low CIBIL Credit Cards

Credit cards have become a convenient and widely used financial tool in today’s digital age. They offer flexibility, ease of use, and various benefits to users. In addition, most banks offer an online credit card application process. 

However, individuals with a low CIBIL (Credit Information Bureau India Limited) score often face challenges when applying for a credit card. Thankfully, options are available for those seeking credit cards despite having a low CIBIL score. 

This article will discuss the eligibility criteria for obtaining such cards and how they can help individuals build or rebuild their creditworthiness. 

What are Low CIBIL Credit Cards?

Low CIBIL credit cards are specifically designed for individuals with low credit scores. These cards allow people with limited or adverse credit histories to access credit facilities and improve their financial standing. They usually come with lower credit limits and interest rates than regular credit cards. 

What is the minimum CIBIL score?

The recommended or minimum CIBIL score for most online credit card applications is 750. Individuals with scores below 750 may need help obtaining card approval, particularly from top-tier companies. Nevertheless, many banks extend credit card offers to individuals with a credit history or scores below 750. However, it is essential to note that those with a score of 750 or more are eligible for a broader range of credit card options and benefits compared to those without this category. 

Eligibility Criteria for Low CIBIL Credit Cards

 Given below are the major criteria that you need to check out when applying for a low CIBIL credit card.

Minimum Age Requirement

To apply for a low CIBIL credit card, the applicant must be at least 18 years old. Some banks may have a higher minimum age requirement, such as 21 years. 

Income Criteria

Most low CIBIL credit cards require a minimum income to ensure the applicant can repay the credit card dues. The income criteria may vary depending on the bank or financial institution issuing the card. 

Income Stability

Financial institutions prefer applicants with a stable income source. Typically, individuals with a consistent employment history or a regular source of income, such as self-employed individuals, are considered more eligible for low CIBIL credit cards. 

Proof of Identity and Address

Like any other credit card application, applicants must provide valid proof of identity and address. It can include documents such as an Aadhaar card, PAN card, passport, utility bills, or rent agreement. 

Credit Score Assessment

While low CIBIL credit cards are designed for individuals with low credit scores, some financial institutions may still assess the applicant’s creditworthiness. However, they may be more lenient than regular credit cards, considering factors such as income stability and repayment capacity. 

Benefits of Low CIBIL Credit Cards 

Given below are the major benefits of low CIBIL credit cards.

Financial Flexibility

Low CIBIL credit cards offer financial flexibility to individuals with limited access to credit options. They can be used for everyday expenses, emergencies, or even to cover unexpected financial gaps. 

Increased Future Credit Opportunities

As individuals demonstrate responsible credit card usage and improve their credit scores, they become eligible for better future credit card offers and other loan products. Low CIBIL credit cards can be a stepping stone towards accessing more favourable financial products. 

Online Shopping Convenience

Low CIBIL credit cards can be used for online purchases like regular credit cards. They offer convenience and security when making transactions on e-commerce platforms, paying bills, or using various online services. 

Apart from these, the fact that low CIBIL credit cards give the borrowers the opportunity to build and rebuild credit is what makes it a valuable tool.

Why is CIBIL Score Important for a Credit Card? 

Your credit card approval depends heavily on your CIBIL score, a three-digit number indicating your creditworthiness. This score is calculated based on factors such as your repayment history, credit utilisation ratio, and the status of your loan accounts.

When you apply for a credit card, the issuer reviews your CIBIL score to assess your ability to repay your credit card bills promptly.

Therefore, maintaining a good CIBIL score and a clean credit history is essential to approve credit card applications quickly.

Also Read: How is Interest Charged on a Credit Card

Conclusion 

Low CIBIL credit cards provide a valuable opportunity for individuals with low credit scores to access credit facilities and rebuild their financial standing. Individuals can apply for low CIBIL credit cards by meeting the eligibility criteria. Remember to compare different low CIBIL credit card options available in the market to choose the one that best suits your requirements and financial goals. Managing your credit card balance responsibly is crucial in improving your credit score and overall financial health.