Introduction
Getting a credit card in India with a low CIBIL score can be challenging. Many applicants with scores below 700 face repeated rejections, even when they have stable income and employment. This often leads to the belief that credit cards are only meant for people with high credit scores.
From a banking perspective, this is not entirely correct.
Indian banks do provide specific credit card options for borrowers with low or weak CIBIL scores, but these cards are structured differently to manage risk. Understanding these options is essential—not just to get approved, but to ensure that the credit card actually helps improve your credit profile instead of damaging it further.
This article explains which types of credit cards are suitable for low CIBIL scores, which are the best credit cards, how banks evaluate such applications, and how borrowers should use these cards responsibly.
Table of Contents
What Is Considered a Low CIBIL Score for Credit Cards?
Before choosing a credit card, it is important to understand how banks classify credit risk.
Broad banking classification:
- 750 and above → Low risk
- 700–749 → Moderate risk
- 650–699 → High caution zone
- Below 650 → High risk
Most standard unsecured credit cards are approved comfortably only above 720–750. Below this range, banks either:
- Decline the application, or
- Offer controlled credit card products designed for higher-risk profiles
To understand this classification better, you should first read how a CIBIL score works in Indian banks and NBFCs and check your cibil score clicking here.
Why Banks Are Careful with Low CIBIL Credit Card Approvals
Credit cards are unsecured revolving credit products, which means:
- No collateral
- Flexible repayment
- Higher default risk compared to loans
When a borrower already has a low CIBIL score, issuing an unrestricted credit card increases the risk significantly. This is why banks apply additional safeguards, even when income appears adequate.
This conservative approach is similar to the logic explained in why banks reject loan or credit card applications even with reasonable profiles.
1. Secured Credit Cards (Most Reliable Option)
What Are Secured Credit Cards?
Secured credit cards are issued against a fixed deposit (FD) placed with the issuing bank. The credit limit is usually linked to the FD amount.
Why Banks Prefer Them
- Credit risk is covered by the FD
- Repayment behaviour can be monitored safely
- Default impact is minimal
Why They Are Ideal for Low CIBIL Scores
From a banker’s perspective, secured credit cards are the safest starting point for borrowers with weak credit history.
When used correctly:
- On-time payments are reported to credit bureaus
- Credit utilisation remains controlled
- Credit discipline improves steadily
These cards align well with the principles discussed in how to improve CIBIL score from 600 to 750 in India.
2. Entry-Level or Basic Credit Cards
Who May Qualify
Some banks issue basic or entry-level credit cards to borrowers with:
- Stable salaried income
- Moderate credit stress
- Scores typically in the 650–700 range
Key Characteristics
- Lower credit limits
- Limited rewards or benefits
- Stricter monitoring
Approval is not guaranteed. Banks internally evaluate:
- Income stability
- Existing obligations
- Overall repayment comfort
This assessment closely follows the process explained in how banks decide loan and credit card eligibility in India.
3. Credit Cards Based on Salary Account Relationship
How Relationship-Based Approvals Work
If a borrower maintains a salary account with a bank and shows:
- Regular salary credits
- Clean account conduct
- Low overdraft or bounce history
The bank may consider issuing a credit card even with a lower CIBIL score.
Important Limitation
These approvals are relationship-driven, not policy-driven. Eligibility depends heavily on:
- Length of relationship
- Account behaviour
- Internal risk assessment
4. Co-Branded or Fintech-Linked Credit Cards (Use with Caution)
Some co-branded or fintech-associated cards claim easier approvals for low CIBIL borrowers.
Banker’s Caution
Such cards often come with:
- Higher fees
- Limited transparency
- Aggressive recovery practices
- Lower long-term credit benefit
Borrowers should approach these options cautiously, just as they would when comparing lenders in bank vs NBFC loans: approval logic, interest rates and risk.
Credit Cards to Avoid When CIBIL Is Low
Borrowers with low CIBIL scores should avoid:
- Cards promising “guaranteed approval”
- Very high joining or renewal fees
- Cards that do not clearly report to credit bureaus
- Cards encouraging high limits despite weak profiles
These products may worsen credit health instead of improving it.
How to Use a Credit Card Safely When CIBIL Is Low
Approval alone does not improve credit. Usage behaviour does.Banker-Approved Usage Rules:
- Keep utilisation below 30% of the limit
- Pay the full bill amount, not minimum due
- Avoid cash withdrawals
- Avoid converting spends into EMIs initially
High utilisation and unsafe EMIs often lead to repayment stress, as explained in how much EMI is safe for your salary.
Will a Credit Card Actually Improve a Low CIBIL Score?
Yes—but only when used with discipline.
Banks look for:
- Timely repayments
- Low and stable utilisation
- Consistency over several months
Typical improvement pattern:
- 3 months: Early movement
- 6 months: Noticeable improvement
- 9–12 months: Strong recovery possible
Common Mistakes That Prevent Score Improvement
- Applying for multiple cards simultaneously
- Paying only minimum dues
- Maxing out limits
- Closing cards too early
These behaviours signal stress, not recovery.
Conclusion
A low CIBIL score does not permanently block access to credit cards in India. However, choosing the right type of card and using it responsibly is critical.
From a banking standpoint:
- Secured credit cards are the safest starting point
- Entry-level cards work for stable profiles
- Aggressive or “easy approval” cards should be avoided
Used correctly, a credit card can become a powerful tool to rebuild credit discipline and restore long-term financial trust.