How to Get a Credit Card Without a CIBIL Score in India

When Anant explored getting his first credit card, it was a little confusing. He realised that when you apply for a credit card, the bank asks you for your credit score. But to build a credit score, you first need to take some credit, so that your creditworthiness can be checked. It felt more like a catch-22 situation.

For people who haven’t taken a loan or used a credit card, you may not have a CIBIL score yet. This, contrary to popular belief, doesn’t mean that you cannot get a credit card. As a first-time credit card applicant, there are several options that you can choose from, such as secured cards and add-on cards.

What is important here is to choose an option that helps you establish a positive credit history without taking on more credit than you can comfortably repay.

What Does it Mean to Have No CIBIL Score?

Your CIBIL score is basically a report card of how well you have handled credit. This number, which ranges from 300 to 900 that reflects your credit history and repayment behaviour. For instance, someone who has always paid their loan instalments on time will typically have a higher score as compared to someone who has defaulted.

What should be understood here is that having a low score is different from having a low CIBIL score. Someone who has had insufficient credit history for a score to be generated might not have a credit score. As this can limit the information available to assess their repayment behaviour, getting a regular credit card can sometimes be a little more difficult.

How to Get a Credit Card Without a CIBIL Score?

Having no CIBIL score does not automatically close the door to getting a credit card. Here’s what you can do.

Apply for a credit card against a Fixed Deposit.

This can be an easy yet useful starting point. As the name suggests, with a credit card against an FD, you can use the card for up to a set percentage of your FD amount. The card may be available even when you have limited or no credit history. The best part is that your FD can also continue earning interest according to its applicable terms.

Tip: Check the minimum FD requirement, credit limit offered, annual fees, interest rate, as well as foreclosure rules.

Get an add-on credit card.

If you want a credit card for an eligible family member, you can get them an add-on card. This will be issued against your, the primary cardholder's, account. Depending on the card type, they may be able to start building their credit score.

Apply for a student credit card.

A suitable option for students and young adults who do not have any credit history is that they opt for entry-level cards that often come with modest credit limits. The eligibility for a credit card may vary among issuers.

Note: Despite the low credit limit, these cards can be useful for first-time users, as they can bring better financial management and help you build a good credit profile.

Look for co-branded and fintech cards.

Instead of looking only at your credit score, some fintech companies may offer credit cards based on your spending patterns. You may also come across prepaid cards or pay-later products. However, before you sign up, make sure to check if the repayment behaviour is reported. Also, do check the terms before applying.

Got Your First Card? Here’s How You Can Build Your CIBIL Score

Once you get a credit card, keep in mind that it is only the first step. Your subsequent behaviour will determine how well you can build your CIBIL score.

1. Remember to pay the total bill on time every time. When you pay only the minimum amount, the unpaid balance will keep attracting interest.
2. You also need to keep your credit utilisation under control. A high credit utilisation ratio can mean that you are dependent on credit.
3. Compare your credit card eligibility and fees first and apply selectively. Too many applications can result in hard enquiries and negatively impact your score.
4. Keep checking your CIBIL at least once a month. This will not only help you see how your repayment behaviour is reflected on your credit report but also help you find any inaccuracies.

In Conclusion

Getting your first credit card can be exciting. To improve the chances of your approval, try to maintain a healthy bank balance. If possible, apply at a bank where you have a savings or salary account or have some deposits like an FD. Also, before you apply for a credit card, make sure you check the eligibility and apply for cards where you think your chances of approval are high.

If you are looking for a credit card from a trusted bank or financial company, you can download the JioFinance app and explore various options. Start with a manageable limit, spend within your means, pay the full bill on time and avoid unnecessary applications.

Remember, a credit card works in your favour when it is treated as a payment and credit-management tool, not as extra income.