How Does Your CIBIL Score Affect Your Credit Card Eligibility?

Posted on Saturday, January 15th, 2022 | By IndusInd Bank

Credit cards are no longer a luxury. They have become an important lifestyle choice which, besides convenience and flexibility, offers users a wide range of services. Whether you want to pay for big-ticket purchases, go shopping, or have a meal at your favourite restaurant, with a credit card in your wallet, you can cover every transaction, regardless of your bank account balance.

With myriad options available in the market today, getting a credit card has never been easier! Now you can enjoy instant credit card approval by simply applying for a credit card online and submitting your Aadhaar and PAN card.

However, you have to consider certain eligibility criteria for successful approval, the most important of which is your credit score. Apart from approval, your credit score also decides the spending limit on your credit card.

That’s why it’s essential to educate yourself about credit scores and their impact. To help you out, here’s a primer in credit ratings.

Why Do Banks Assess Your Credit Score?

Credit cards are a form of unsecured lending, meaning that banks do not require you to pledge any collateral or security to forward you this credit. Since banks have no security, they have to be confident that the party they’re lending to is worthy of the credit and won’t default on payments.

Credit score lets them do that, as it encompasses your entire bill-paying and credit history, from past loan repayments to mobile bills.

As you may have guessed, having a high credit score can impact your application positively. However, the converse is also true. Therefore, it is imperative to have a healthy credit score when applying for an instant credit card online.

What Impact Does Your Credit Score Have?

A low credit score is a mark of poor financial and debt management. Thus, if you have a low credit rating, it can negatively impact your chances of credit card approval. Even with a low credit score, it’s still possible to get a credit card. However, you’ll be charged exorbitant interest rates. Additionally, you will enjoy limited spending freedom, as a low credit score also means a low credit limit.

On the other hand, a healthy credit score reflects sound debt management, and hence, can improve your credit card eligibility. In fact, with a high enough credit score, you can easily secure an instant credit card online.

Plus, you also get to enjoy favourable terms and conditions such as an affordable interest rate or lower credit card fees, and so on. Furthermore, a healthy credit total can make you eligible for top credit cards and a higher credit limit, offering you much more convenience and spending freedom.

Therefore, it is essential to review your credit report and CIBIL scores before you apply for credit card online instant approval so that you can take corrective measures and improve your eligibility. If you have a lacking credit score, here are some tips to help you bump it up.

Tips to Improve Your Credit Score

If you have a low CIBIL rating, you can easily improve by adopting a few measures like:

• Paying your existing credit card bills and loan dues on time to avoid any issues in your repayment history and build a stable credit score
• Keeping your credit utilisation ratio below 30%
• Not applying for many credit cards at the same time. Doing so can adversely affect your credit score, as every time you apply for a card, the provider places a hard enquiry on your credit report, which hurts your rating. So, the more the enquiries, the worse the impact.
• Keeping a regular check on your credit report to know where you stand and rectify errors if any

Summing Up

Are you looking for easy credit cards at affordable terms and easy eligibility? Then your search ends here with IndusInd Bank! We understand your diverse financial needs and offer you a wide range of credit cards tailored to meet your goals.

What are you waiting for? Apply for an IndusInd credit card and enjoy a host of amazing benefits.

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.