Featured Image Caption: Credit Card and CIBIL Score
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A credit card can be a useful financial tool, providing convenience, security, and even rewards. However, getting approved for a credit card depends on a variety of factors. One of the main criteria is your CIBIL score. If you have a CIBIL score of 700, you are in a good position to apply for a credit card. However, you still need to take strategic steps to improve your chances of approval.
Read on to know what your CIBIL score represents and get valuable tips and insights on how to get a credit card with a CIBIL score of 700.
What is a CIBIL score and why does it matter?
A CIBIL score is a three-digit numeric score that indicates your creditworthiness based on your history and behaviour with credit. It is calculated by the Credit Information Bureau (India) Limited (CIBIL) and ranges from 300 to 900. The higher your score, the more likely you are to be approved for affordable credit.
A CIBIL score of 700 and above is considered good and indicates that you have a good track record of managing credit. Having a good score is important when it comes to getting credit, such as a credit card. Credit card companies use your CIBIL score to decide whether to offer you a credit card or not.
A good CIBIL score can also help in getting credit cards with higher limits, lower interest rates and charges and premium benefits. For instance, when you have a score of 750 and above, you can get a premium credit card. This score is considered ideal for a credit card that has zero fees or offers you flagship deals along with a high credit limit.
How to Get a Credit Card with a CIBIL Score of 700?
Here are some tips you can use to get a credit card with a CIBIL score of 700.
Choose the right card
Make sure you choose a credit card that you are eligible for. Check the issuer’s eligibility criteria and only apply for credit cards that you qualify for. This helps avoid the scenario of your application being rejected.
Secondly, choose a credit card that offers you rewards and benefits on transactions that you typically make. These may include reward points, cashback or discounts on fuel spends, travel, hotel bookings, groceries, and more that will help you save money. Lastly, make sure you choose a credit card that comes with low or no annual fees and charges and low interest rates.
Apply for a lower credit limit
Consider requesting a lower credit limit when you apply. This will make it easier for you to manage your expenses and will also make it more likely for the credit card company to approve your application. A lower credit limit will also help you avoid overspending and getting into debt.
Pay your bills on time
Consistently paying your bills as per the due date is one of the best ways to improve your credit score and qualify for a higher limit on your credit card. Ensure that you pay your credit card bills in full every month to avoid paying interest charges or late fees. This will also help you avoid hurting your credit score.
Keep your credit utilization low
Try to keep your credit utilization ratio below 40-30% of your credit limit. This will indicate to lenders that you are responsible with credit usage and are not overspending. Lenders prefer borrowers with a low credit utilization ratio as it shows that they are not over-relying on credit and can manage finances well.
Check your credit report regularly
Review your credit report regularly to ensure that there are no errors or incorrect information that could negatively affect your credit score. If you do find an error, report it to the credit bureau immediately. This will help you maintain a good credit score and improve your chances of getting approved for a better credit card.
In short, getting a credit card with a CIBIL score of 700 is achievable with the right approach. Remember, having a good CIBIL score is not only important for getting a credit card, but also for other types of credit in the future. Ultimately, getting a credit card is just the beginning of a successful financial journey. With responsible usage, you can leverage your credit card to achieve your financial goals.
To find the right credit card and get started today, download the Bajaj Markets App. Find the best credit cards on the app and apply in minutes! With just a few clicks, you can access a world of financial opportunities and exclusive benefits.