What is a Good Credit Score for Credit Cards?

While applying for a Credit Card or loan with a bank, you may have come across the term 'CIBIL Score.' It is considered of utmost importance while applying for a Credit Card. A good CIBIL score can open doors to better credit card offers, lower interest rates, and favourable terms. But what exactly constitutes a good credit score? Let us help you understand the term 'CIBIL Score' better.

A CIBIL score is a three-digit number between 300 and 900, representing your creditworthiness. RBI has authorised three credit bureaus to issue credit reports and scores. CIBIL is widely used in India to calculate your financial health. CIBIL, or Credit Information Bureau (India) Limited, maintains records of your credit history and financial behaviour, including loans, credit cards, and payment histories. Your CIBIL score is calculated based on this information and helps lenders assess your creditworthiness.

A score of 750 and above is considered a good score. This helps you get quicker approvals for your Credit Card. It signifies that you have maintained a healthy credit history and can manage your credit well by repaying the balance on time, proving that you are a trustworthy individual who can pay off your debt in time. For your better understanding, here is the detailed information on what different CIBIL score range means.

• 300-499: This range is considered poor and indicates a high risk of default. Individuals with scores in this range might struggle to get approved for credit cards or loans.
  
  

• 500-649: Scores in this range are considered fair. While you might get credit card approvals, you may face higher interest rates and less favourable terms.
  
  

• 650-749: This is a good range. Individuals with scores in this bracket are likely to receive credit card offers with better terms and lower interest rates.
  
  

• 750-900: Scores in this range are excellent. Individuals with scores in this category are considered low-risk borrowers and typically receive the best credit card offers and rates.

While a score of 750 and above is ideal, people with lower CIBIL scores can also be eligible for a Credit Card. Since risk is higher with people with a lower score, the interest rate is usually high and the credit limit might be lower than those with a high CIBIL score.

There might also be restrictions on the use of the Credit Card. While there isn’t a fixed minimum CIBIL score for credit card approval, consulting with your bank executive is advisable before applying. They can review your CIBIL score and provide specific approval criteria based on your financial profile. You can then proceed with your online or offline application with a clearer understanding of your eligibility.

It is ideal to maintain a minimum CIBIL score of 750 to get better offers on Credit Cards and quicker approval. CIBIL score is one of the eligibility requirements before getting your Credit Card approved. These points can help you understand how to check credit eligibility to get a Credit Card.
To apply for HDFC Bank Credit Card, click here.