In today’s financial world, where everything is super expensive and fast forward. Surviving on your monthly income and managing your expenses might get a bit difficult. Hence, in this situation things like credit cards or loans come to the rescue. Credit cards are not just any other payment tool, it helps you manage your expenses, handle emergencies, earn rewards, and build credit history. Applying for a credit card is easy but getting it approved is a process you need to understand. Credit score for credit card approval is one of the important factors considered by banks/lenders.
Instead of understanding the credit card eligibility, many people face problems with rejections in this process. As lenders consider the credit history to understand the borrower’s ability to pay debts responsibly. CIBIL (Credit Information Bureau India Limited) is a trusted organization by most of the lenders to understand your credit history. It is one of the top credit score monitoring and maintaining organizations in India. Credit score and CIBIL score works interchangeably, and it is important to manage both the scores to get faster approval for credit cards, loans or lower interest rates.
Hence, this blog will help you understand the importance of credit score, how it impacts your credit card eligibility, what is the minimum credit score for credit card approval, lenders evaluation on approval, and how you can improve your chances of credit card fast approval.
Importance Of Credit Score:
A credit score is a three digit number that acts as a reflection of your credit behaviour. This simply means that it explains your finance management capabilities. Credit score is calculated based on your repayment history, length of credit usage, loan applications, and types of credit used. It helps the lenders to understand whether you are a responsible borrower or not.
The minimum credit score for credit card might be different from lender to lender, but someone with a higher credit score has high chances of credit card fast approval. Hence, it is very important to maintain a good credit score.
What Lenders Consider About Your Credit Score For Credit Card Approval:
A credit card is an unsecured tool where there is no collateral involved. This creates risk for the lenders to trust the borrower, since there is nothing to recover in case of default. Hence, lenders completely rely on credit score to understand the borrowers responsible behaviour and repaying capacity.
Lenders considers the following factors for credit card fast approval:
- Past repayment history
- Usage of your credit
- The likelihood of missed payments
A lower credit score may be considered as a sign to reject the application or approval with lower limits and higher charges.
Minimum Credit Score For Credit Card Approval:
The exact requirement of a credit score may vary depending on different banks and financial organizations. Here is the general list of a credit score considered by most of the lenders:
Credit Score Ranges
| Credit Score Range | Approval Chances | Credit Card Features |
| Below 600 | Very low | Mostly rejected |
| 600 – 649 | Low | Limited or secured cards |
| 650 – 699 | Moderate | Basic credit cards |
| 700 – 749 | Good | Better limits and rewards |
| 750 and above | High | Premium cards and fast approval |
As mentioned above in the table, the minimum score required for a basic credit card starts around 650. However, a score of 700 or above 750 will provide you with rewards and a credit card fast approval process.
Credit Card Eligibility: Factors Beyond Credit Score:
While the credit score is an important factor, there are other considerations that the lender makes before approving a credit card application.
The most important factors for eligibility are:
- Income and stability of income
- Nature of employment (salaried or self-employed)
- Existing loans and EMIs
- Credit utilization ratio
- Age and stability of residence
A good credit score for credit card may not be enough if the EMIs are high or the income is unstable. This is why it is essential to have a good credit profile.
Impact Of Credit Score On Credit Card:
If you want your credit card fast approval, then your credit score becomes even more important. People with high credit scores are usually offered:
- Pre-approved credit card offers
- Less paperwork
- Faster verification and approval
- Higher initial credit limits
Most online platforms and fintech systems have made it possible for people to maintain a high credit score. For example, platforms like Olyv, which function according to RBI guidelines, usually emphasize the need to have a good credit score.
Common Mistakes That Can Risk Credit Card Approval:
Many applicants might repeat mistakes that can affect their credit health, and this will later lead to delay in credit card approval.
Some common mistakes include:
- Missing on any kind of payments like credit card bill or loan EMI will affect your credit score, which will result in decreased credit score and rejection in your application.
- Applying for too many credit cards at once can create a major problem in your application process. As this will directly reflect on your credit report.
- Using your credit limit above 30 – 40% will make the lender believe in your heavy credit usage ability. This will lead to a delay in the process.
- Ignoring default errors in your credit report is a sign of irresponsibility and avoidance.
- Closing old credit cards without any reason will make the lender cautious about approving your application.
Keep these common mistakes in your mind and try to avoid them for your credit card fast approval.
Credit Card For First Time Users?
However, first-time users can apply for a credit card, but this often involves some planning and waiting. When first time users don’t have any credit history, credit card providers might be reluctant to provide them with regular credit cards right away. In these situations, first-time users can begin with secured credit cards, beginner credit cards with low limits, or credit cards that are tied to a fixed deposit. These credit cards involve less risk for the credit card providers and allow first time users to start building their credit history. When first time users practice responsible usage of the credit card and avoid high credit utilization, they can start building a good credit history over time.
Final Thoughts:
The minimum credit score for credit card approval is an important factor that helps in deciding whether your application is accepted or rejected. It also helps in deciding the type of credit card you will get, the credit limit, and the time taken for approval. To improve your chances of getting a credit card, it is essential to know the minimum credit score for credit card, practice good financial discipline, and avoid making mistakes.
Having a good credit score is not only important for getting a good credit card, but it also provides an opportunity to get faster approvals, better rewards, and more financial flexibility in the long run. By being disciplined and monitoring your credit report regularly, you can enjoy the benefits of using credit cards without any financial stress.
In the long run, it is essential to consider your credit score as a financial asset that will provide you with better opportunities and help you stay stable in your financial life.
