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CIBIL™ Rating: What’s A Good Score To Get Credit Card Easily; How To Keep An Excellent Rating

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Due to the effort taken by the government of India to extend the financial system, many people are joining the banking system. As many have opened an account with the bank, the need for loans, credit cards, and other lines of credit is growing. Before providing any loan or credit card, the lender always looks through your CIBIL™ score & history and then approves your proposal. CIBIL™ score represents your creditworthiness in numerical form. As a part of the due diligence process, banks and financial institutions check your  CIBIL™ score to know your repayment capacity.  Read on to know the importance of the CIBIL™ score and the benefits of getting a credit card with a good score. 

CIBIL™ Score 

A CIBIL™ score is a three-digit number ranging from 300 – 900. This 3-digit number helps the lender gauge your creditworthiness. Generally, having a CIBIL™ score of more than 750 is considered a good credit score to avail of financial products. A higher CIBIL™ score has a good chance of getting you instant loan & credit card approval as it is a numeric representation of your credit history. A score of more than 750 illustrates your good credit behavior without past defaults in credit repayment.

It indicates your creditworthiness and past credit behavior. This score is derived using the past credit behaviors found in the CIBIL™ report. It includes personal & contact details, employment, account, and inquiry information. In case of a low CIBIL™ score, you may face the rejection of your credit proposal or some lender may provide you with credit at unfavorable terms like high-interest rate or limited repayment tenure. Therefore, maintaining a CIBIL™ score above 750 will help you get financial products at favorable terms.

How To Maintain A Good CIBIL™ Score?

The first step toward maintaining a good CIBIL™ score is to build your credit record. If you don’t have a credit card, you may approach the lender with whom you hold a good relationship. Furthermore, checking whether the person you have approached has good terms with a bank to increase the chance of getting a credit card would be easy. Before opting for a credit card, go through your CIBIL™ score. Once checking your score, you can start applying for the card. 

If the lender denies your proposal, you should wait for a while and then approach another lender. It is advisable not to apply for another lender immediately after the rejection. Taking sufficient gaps between each credit card application will save you from not getting a negative impression on your credit report. Also, ensure to manage your credit card bills by making timely payments. Also, it is always better not to spend more than 75% of your credit limit on your card as it impacts your credit score. The Credit utilization should neither be too low but not too high to have a positive impact on your rating.

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Don’t Exhaust Credit Card Limit: 

If you find it hard to stay within the existing credit limit, you can choose a credit card with a high credit limit to manage your spending. To maintain the CIBIL™ score, limit your credit utilization ratio to 30 percent. Running up a large unpaid amount on your credit card can affect your credit score and lead to a debt trap as it is harder for you to repay the money in the future.

Avoid Delay In Repayment Of Dues:

The first and foremost thing that must be strictly followed to maintain a good CIBIL™ score is timely repayment without any defaults. Ensure to repay your loans or credit card dues before the due date. Making a default in repayment will impact your CIBIL™ score. It will drastically reduce your credit score and affect your capacity to get credit in the future.

Choose Diversified Loan Products:

It is advisable to diversify the loan portfolio with secured and unsecured debt to get a high CIBIL™ score. A credit card is categorized as unsecured debt, and a home loan or auto loan is considered a secured debt. 

Avoid Canceling Your Old Credit Cards:

Many of us are unaware that canceling the old credit card may impact our credit score. Remember that old credit cards with timely repayment of dues before the due date will give you a high credit score. 

Regularly Check Your Credit Report:

Some of your credit reports may have some mistakes or wrong entries. Checking it often can help you to rectify it. For instance, if your lender forgets to update the CIBIL™ regarding your closed loan, it may be marked as an error that may lower your credit score. 

What Is The Good CIBIL™ Score To Get Credit Cards Easily?

The minimum CIBIL™ score to avail of a credit card is  750. If you maintain a score below 750,  you may not get a chance of getting credit card approval from top lenders. A person with a zero credit score also has eligibility to get a credit card. Some lenders may also provide credit cards for an individual without a credit history or a low CIBIL™ score below 750. An individual who has no credit history but is employed in a reputed organization with a stable monthly salary may be considered an eligible candidate to avail of a credit card. But, the fact is that a good CIBIL™ score can avail of a credit card at favorable terms.

Check The Following Benefits Of Getting A Credit Card With A Good CIBIL™ Score.

  1. If you have a CIBIL™ score of more than 750, you are eligible to avail of top credit cards with exclusive features. 
  2. It also helps you to avail of cards with higher credit limits. 
  3. You can get credit cards at a  lower interest.
  4. You can easily get approval for a credit card
  5. A good CIBIL™ score gives you the power to negotiate the interest rate of your credit card. 

If you want to enjoy the benefits of availing credit cards at a favorable term,  you should maintain a good CIBIL™ score of 750 and above. Always a CIBIL™ score will bring a lot of benefits while opting for any sources of credits. 

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