What is the CIBIL Score Required for Credit Card?

by Ajay Singh Financial Advisor

Credit cards are one of the best ways to make purchases and expenses when an individual runs short of cash. to get a credit card, you need to meet credit eligibility and have a good credit score. Credit cards are an integral part of credit eligibility and financial habits. A credit card allows you to make small and big purchases and pay the bill later on in the next billing cycle. Since a credit card purchase is expensive as the rate of interest is high, financial institutions and non-banking financial institutions check the credit eligibility of an individual before offering a credit card. A credit card comes with a limit, within which the individual can make purchases. If you are looking for a good credit card with the latest offers and discounts, you need to get the right credit eligibility to get a good credit card.

What is the credit score needed to get a credit card?

To get a credit card, you need to have a free credit score of more than 700. Better the credit score the more will be the credit limit available to the individual. It is important to build credit to get a high limit credit card. Depending on the free credit score check, the financial institutions offered a credit card with a distinct credit limit.

How to improve your credit score to get the best credit cards?

● Make your payments on time. Take care of the due dates and automate your payments so that the amount is debited within the due date without you worrying about it. When you make your payments on time the credit score improves and you are eligible to get better credit card limits with unlimited offers and discounts.

● Keep the debt to income ratio balanced and below 30%. Since credit card debt is an expensive one, a loan provider will think twice before offering you a credit card if you already have existing multiple loans. Therefore, you must get away with other credit cards or other loans before taking a new credit card. Multiple credit cards will lead to credit-score damage. Learn How to calculate business loan by using business loan calculator.

● Do not apply for multiple credit cards as loan providers run a hard inquiry check on your credit report every time you apply for a new credit card. This way you will harm your credit score and there will be possibilities of getting a low credit score.

● Keep your credit utilization ratio below 50%, to get lucrative credit card offers. If you exhaust the entire credit limit, it will be difficult for you to get a new credit card. Therefore, it is important to maintain your credit eligibility by keeping your credit score under control.

● Always make full bill payments without keeping any overdue or outstanding amount. It is important to avoid minimum will payments, and you need to make the full bill payment to increase your credit score. By making minimum payments you will make your credit card purchases more expensive and harm your credit score in a way. Therefore, it is recommended to avoid overdue while paying your bills

Wrapping up

To be eligible for a credit card it is important to monitor your free credit score with the help of free credit score check options available on Clix Capital website. It is important to run a free credit score check regularly to improve and monitor errors that are present in a credit report