How to Get a Credit Card With Low Credit Score
A credit score, also known as a credit rating, is an assessment of an individual’s credit risk, including creditworthiness and credit capacity. In a credit score, the higher the number, the better. But if you have a bad credit score, you may not be able to get a new credit card.
But there is nothing to worry about. There are a few ways you can still get a new credit card with a low credit score. But before we take a look at how you can apply for a new credit card, let’s understand what a bad credit score really is.
What is a Bad Credit Score?
In India, credit score range from 300 to 900. A credit score that is below 550 is considered a bad credit score. There are many disadvantages of having a bad credit score such as being subjected to higher interest rates, higher insurance premiums, difficulty in renting an apartment, and more. Therefore, it’s important to maintain a good credit score by avoiding late or missed payments.
Getting a Credit Card With a Low Credit Score
- Secured Credit Card
Due to bad credit history, lenders will be able to provide you with a secured credit card where you need to open a fixed deposit with the lender. In these credit cards, the credit limit will be 100% of the deposit.
- Pre-paid Credit Card
Offered by almost all major banks in India, prepaid credit cards are another great choice for those who have a low credit score. You can use these prepaid cards by depositing a certain amount of money and then spending your money accordingly. It works exactly like a prepaid sim card.
- Add on card
You can also consider applying for an add-on card with anyone in your family holding a primary card, which will mean you’ll have access to the entire credit limit of the shared account. Therefore, both cards will have a reduced credit limit.
- Credit Card Against Savings Account
Similarly, you can also get a credit card based on your savings account. For that, you have to deposit a certain amount of money in your savings account for the bank to provide you with a credit card. However, this is something not all banks provide in India.
If you want to apply for a new credit card, you can consider relying on WeFin.
We at WeFin provide you with multiple options from India’s most trustworthy banks and NBFCs so that you get the credit card that will best fit your needs. Using WeFin, you get to experience a 100% hassle-free process at your fingertips without having to step anywhere outside. Best of all, approvals are instant and there’s minimal documentation required.