If your CIBIL score is low, it may be hard for you to get a credit card. A three-digit number called a CIBIL score shows how creditworthy you are based on your credit history.
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Get a Credit Card with Bad Credit Score
If your score is low, it could mean that you haven't paid bills on time in the past or that you have too much debt. But even if your CIBIL score is low, you can still get a credit card. Here are some choices to think about:
1. Credit cards with a deposit:
People with bad credit can get a lot out of secured credit cards. Most of the time, the protection deposit for these cards is the same as the credit limit. The security fee lowers the risk for the lender, which makes it easier for them to say yes to your request.
You can build or fix your credit over time by using a protected credit card and making payments on time. After a while, you might be able to get a credit card that doesn't have to be paid back.
2. Co-signed Credit Card:
Another choice is to apply for a credit card that someone else has signed for you. A co-signer with good credit can help you get approved for a credit card. But keep in mind that for the co-signer, this is a dangerous choice.
If you don't pay on time, the co-signer is also on the hook for any debt you get into. Before you choose this choice, make sure you have a plan for paying your bills on time so you don't put your co-signer in a bad financial position.
3. Credit-Builder Loan:
A credit-builder loan is a type of loan where the money is held as collateral in a bank account. You pay back the loan, which can help your credit score better over time. After you've paid back the loan, you'll be able to get the money. This choice can be a great way to save money and improve your credit score at the same time.
4. Pay down your debt and improve your money habits:
The best way to raise your CIBIL score is to pay down your debt and improve your money habits. This means paying your bills on time, paying down your credit card amounts, and not getting into any new debt.
Your score may not get better right away, but if you stick to these habits, it will get better over time.
Conclusion
Even if you are approved for a credit card with a low CIBIL score, you may have to pay higher fees and interest rates.
It's important to use credit wisely and pay on time if you want to improve your credit score and keep it from getting worse.
By using these tips and choices, you can get a credit card even if you have a low CIBIL score and start to get your finances in better shape.
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