Do you want a credit card? Credit cards have become essential in our day-to-day life. If you hold a credit card, you must use it wisely! Have you yet decided the company you want to use the credit card? You just can't apply and get a credit card.
When you apply for a credit card, you need to fulfill the applicable criteria to begin processing of obtaining a credit card. Do you have any idea about your Cibil Score? Cibil Score is one of the key factors that get consider before accepting the proposal of a credit card.
The Cibil Score is a three digit number that lies in between 300-900. The lenders get a description of the credit history as well as the payment records of the applicant.
An excellent Cibil Score increases the rate of Credit card application approval
RBI authorizes three credit bureaus to provide details about the credit reports and scores. Nowadays, it is simple to obtain the Cibil Score online. If the Cibil Score is 750 or above you have an excellent Cibil score and you are eligible for applying for any loan as well as a credit card.
The chances of approval for credit card application are secure if the applicant has a credit score of 750 or more. A good Cibil Score represents that the applicant has followed financial discipline and has a good repayment history for a long time.
Why is Cibil Score decisive?
Credit Card is a form of unsecured lending which the banks provide considering the credit history of the applicant. If the bank denies approving your credit card application, then you must understand that the bank doesn't want to accept the risk of default or delay in making payments.
The bank will decline your proposal for a credit card if you have a weak credit history. If you have a poor credit score, that doesn't mean you can't use a credit card! Certain lenders approve applications for the credit card even though the Cibil score is low.
The lender may charge you higher interest and lower the credit limit under such circumstances. You may also have to pay additional fees for approving the credit card application. Apart from these, the approval process may take longer.
Maintain a good Cibil score and get the credit card application approved
Many people want to know about the minimum Cibil score required for credit card in India. Such persons must know that there is no particular Cibil score fixed for denoting the eligibility for approval of the credit card application.
Every credit card company or the lender has special criteria for approving the credit card application. The rejection rates will be higher if the Cibil Score is low. If you want to obtain a credit card, you need to maintain a good credit score and learn about the applicable rules before you apply for a credit card. You can collect the Cibil score information from different dedicated online sites.