Minimum CIBIL Score For Credit Card That You Should Know

One of the most popular banking products among customers in the past few years is considered to be credit cards. The reasons behind its popularity are many: convenience to pay later, conversion of the transaction into EMIs, reward points, discounts, etc. However, when any financial institution provides you a credit card, they check the CIBIL score of that individual. However, several people don’t know that there is a minimum CIBIL score for credit card that they need to adhere to if they want to get this valuable piece of plastic.

If you don’t know about the CIBIL score, let us tell you that it is a 3-digit number ranging from 300 to 900. With this score, an individual’s creditworthiness can be defined. So, any score of 700 or above is considered to be a good score, while anything below 650 is considered poor. The reason behind checking the CIBIL score of an individual before providing a credit card is to make sure that the person has excellent repayment behavior. You should remember that the minimum CIBIL score for credit card changes from one lender to another.

Here, in this article, we will be telling you the importance of the minimum CIBIL score for credit cards. Keep reading to know more!

What is the Importance of Minimum CIBIL Score for Credit Card?

Individuals need to repay the amount spent with their credit card within 30-50 days. If they repay this amount after this specified period, they will also need to pay an extra interest amount. This is why lenders like to keep a check on the minimum CIBIL score for a credit card they are providing to their customers. With the help of the CIBIL score, an estimation of an individual’s repayment history can be done without any hassle.

So, when we talk about the minimum CIBIL score for credit card, it stands at 700 among lenders which are considered to be a good score. However, as we said earlier this minimum criteria changes from one lender to another. So, it may be possible that the minimum CIBIL score of HDFC credit cards may be different from the American Express credit card. This is one of those things that you should check before choosing a credit card.

Only when an individual qualifies the required condition for minimum CIBIL score for credit card, lenders will provide a credit card. But you know that you can also get some of the benefits if you have an excellent CIBIL score? No? Well, you can check them below.

1. Individuals who have an excellent CIBIL score (750 or above) can get a higher credit limit as compared to an individual who has a poor score.

2. Want to get a credit card in the fastest time possible? Well, individuals with a good score in a fast manner as the processing time will be quite low.

3. A good credit score can also get you some of the best credit cards with exclusive privileges, a reward program, etc.

How to Improve Your CIBIL Score?

Now that you have understood the importance of a minimum CIBIL score for credit card, you should know some of the methods to improve your score. These methods can be useful to you if you want to get your hands on a credit card but are unable to get it due to a low score. You can get a secured credit card against fixed deposits and making timely repayments of this card can help you improve your CIBIL score. Some other methods are having an ideal credit utilization ratio (40% to 50% of the total credit limit), paying the total outstanding bill, never paying the minimum due amount, etc. So, if you keep these methods in mind, you will be able to improve your credit score.