Credit cards are popular financial tools. This pay-with-plastic card works with the idea of ‘use now, pay later.’ Even though many people still stay wary about using credit cards, it is a fact that these plastic cards have their usefulness. However, not everyone can avail of a credit card easily. You need to have a good credit score or credit history of being eligible.
However, you can avail of a credit card even with no credit history or a low credit score.
What is CIBIL Score?
The credit score is also often called the CIBIL score. CIBIL stands for Credit Information Bureau Limited, a credit information company operating in India. Your borrowing and repayment histories, credit card dues, and ongoing loans are considered before calculating your CIBIL score.
The CIBIL score is then shown as a three-digit number ranging from 300-900. The greater your credit score, the better your chances of getting a credit card and its added benefits.
How to Get a Credit Card With Minimal Credit History?
Although the minimum credit score required to approve a credit card request is 750, you can still have a zero score and not lose eligibility. If you do not have a good credit history but are earning a good income, your application may still be considered.
Secured Credit Card
This very easy and comfortable process helps an individual get a card without a credit score. To get a secured card, one must open a fixed deposit account with any bank and make a deposit. Then, apply for a secured credit card. The bank will issue a credit card with a percentage of the limit of the total deposit made. Generally, the credit limit ranges between 50% to 100%.
However, this type of card does not come with any added benefits.
Student Card
If you are a student, you can apply for a student credit card. Depending on the bank you apply with and the kind of card you choose, you may not need any credit score at all. If used responsibly, this card can help build credit which can be helpful while leasing a house or buying a car. Student credit cards generally do not have an annual fee and come with cashback benefits on dining, streaming services, and sometimes grocery stores. Since this works like any other credit card, you may incur interest if you have a balance on the card.
Add-on Credit Card
An add-on credit card is also called a supplementary credit card. You can get an add-on card even if you have no credit history, but one person in your family has to have a credit card with the same bank. The credit limit of the primary card is then shared between the two cardholders. However, even the add-on cardholder can reap the benefits of the primary card.
Against Savings Account
This is another way of getting a credit card without having a credit score. However, only a few major banks in the country provide this facility. You will have to open a savings account with the bank and deposit an amount against which you will be given a credit card.
Prepaid Credit Card
As the name suggests, a prepaid credit card can be availed by any person with a bad or no CIBIL score. You must first put in a certain amount of money and then use it to build your credit score. This works just like using a prepaid mobile connection. All major banks and financial institutes offer this facility.
How to Apply for a Credit Card with no Credit Score
- You can apply online, in person, on call, through the mail, or a credit card app.
- An inquiry will take place wherein you will have to provide your personal information and documents.
- Once approved, you can get your card.
Conclusion
Although having a good credit score or CIBIL score can get you a good credit card and its benefits, you can still get one with any credit history by opting for one of the methods mentioned above. However, once approved, you must use the card responsibly, which will help you build your credit history.
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