How Important is CIBIL Score for Credit Card?

To apply for a credit card, a good credit score is always help you get approval for the same. Some institutions can offer you a credit card even on zero credit score. Taking a credit card is also one of the ways to jumpstart a fair credit history if you do not have any. However, overusing the card will affect your credit score negatively, so will any delay or skip of payments. Thus, misusing credit card in a way of exceeding credit limit or non paying the bills, will in turn affect your chances in future of getting another credit card or loan.

If you are already a credit card user then credit score of 700 and more is considered for giving a thumbs up to the credit card application. Again the range may vary from bank to bank for getting the credit card. Most banks follow the pattern of approving credit cards to people who have clean chit to credit payments and loan repayments. However, there could be other eligibility requirements as well.

Most banks do not give out credit cards to those with bad credit score as there is a high risk of the person delaying payments or defaulting at the same. Some institutions may offer credit cards on bad credit score, but it comes with cons as the interest rate charged would be quite high as well as the credit limit be very low. It is best to maintain a good credit score to get through all these troubles.

Secured credit cards are often taken against fixed deposit, so you can try having a good bank balance if not great credit history. The bank can then recover the dues from the funds you hold in case you default. However, there is no point in defaulting and letting your savings run dry, thus keep up an excellent credit score to get credit cards easily.