With a good CIBIL score, you can easily avail various financial opportunities such as opting for a credit card. But what if you do not have any CIBIL score at all? Does it mean that you cannot avail any financial opportunity at all? No, it is not required at all!
A CIBIL score may smoothen the process of credit card apply but there are ways to get a credit card without CIBIL score too.
Let’s dive into what a CIBIL score is, why banks check it before issuing a credit card, and how you can still get one even if you don’t have a CIBIL score.
What is a CIBIL Score?
A CIBIL score is a three-digit numerical representation of your credit history, typically ranging from 300 to 900. The higher your score, the better your creditworthiness. It’s calculated based on various factors like your repayment history, outstanding debts, and credit inquiries. Banks and financial institutions use this score as a benchmark to evaluate your reliability when approving loans or credit card apply online requests.
Why do banks check your CIBIL score before issuing you a credit card?
Banks give a lot of weightage to your CIBIL score while evaluating the risk of lending money to you through a personal loan or credit card. A high CIBIL score tells banks that you handle credit well and make regular payments and hence, are a low-risk borrower. Conversely, if you have a poor cibil score or no credit history, banks interpret it as there being no track record for repaying debt, making you a higher risk customer for credit card and loan products.
Can I get a credit card without having a CIBIL Score?
Yes, you can get a credit card without CIBIL score can seem an obstacle but you can always look at few options which makes it possible getting a credit card:
1. Secured Credit Cards
A secured credit card is the easiest way to get a card if you do not have a CIBIL score. This type of card requires you to put forward a security deposit when you apply. This deposit then becomes your collateral. As the risk for the lender is minimised with this deposit, you are likely to see your application get approved. Over time, responsible usage and timely repayments will help build a good credit history.
2. Add-On Cards
Another alternative is to opt for an add-on card if a family member already owns a credit card with a good credit score. You can use a secondary or supplementary card in your bank account. As the primary cardholder is liable for payments, you can usually get an add-on credit card without a CIBIL score.
3. Credit Card Against Fixed Deposit
Some banks provide credit cards against fixed deposits. In this case, you have to pledge a fixed deposit as collateral with the bank, and in return of that you will be issued a credit card with the limit of up to 80-85% of your deposit. Since the fixed deposit reduces the bank’s risk it is willing to provide you credit card even if you have low CIBIL score.
4. Credit Card Against Salary Account
If you have a stable job and a salary account with a bank, you might qualify for a credit card as per your regular income. Many banks offer credit card apply deals to salary account holders on the basis of their steady income rather than their CIBIL score.
How to build credit history to improve CIBIL score
While it’s possible to get a credit card without CIBIL score, it’s essential to start building your credit history to so you can improve your CIBIL score. Here are a few tips to get started:
1. Apply for a Small Loan
If you really want to build your credit, you can also take a small loan and pay all of them in time these loans will help you to be credit worth and will gradually improve your CIBIL.
2. Pay Bills on Time
Even if you don’t have a credit card or loan, paying your utility bills, rent and other regular expenses on time can help you build a good credit history. Some service providers report your payment history to credit bureaus, which can positively impact your CIBIL score.
3. Monitor Your Credit Report
It is essential to check your credit report for errors or discrepancies periodically. Mistakes could lower your score. The sooner you know about them, the quicker you can improve your credit health. To check your CIBIL score and check Credit Score Free can be quickly done through multiple platforms, ensuring that your credit information is accurate.
Final Words!
If you want to check free CIBIL score or explore options for your finances, Ruloans is your one-stop solution. As India’s Leading Loan Distributor, we offer you a wide range of loan products, including personal and business loans (MSME loans), loans against property, home loans, education loans, car loans, auto loans, and more. We also provide mutual funds investment, insurance, and credit cards to handle all your financial profiling.
And that’s not all—when you work with us as a Bank DSA Agent, you’ll get attractive on-time commissions (payouts) for the loan disbursed in your account. With 265+ top tier banks, NBFC’s & financial institutions and a network of 25,000+ distributor partners, Ruloans being India’s largest loan distributor is the perfect place for you. Registering as a Loan DSA Agent is now easier than ever with our Ruconnect App. It’s fast and convenient. Register now to start earning!
At Ruloans, we help you borrow right! With our CIBIL Score Check Online, you can know where you stand today and take steps to improve your credit score. Remember, it’s never too late to start building a better financial future.
