How To Apply For Credit Card With Low Credit?

Nowadays credit cards are an important part of our wallets. Then you can not deny keeping them with you.

But what if your credit score is low? Because you can not apply for a credit card with low credit.

As banks demand an average credit score for offering their financial products like credit cards, and loans.

If you are also a person who has a low credit score or zero credibility.  Then also you might face rejection while applying for credit cards in any bank.

So how can anyone apply for credit cards if He/She doesn’t have a good credit score?

Normally bank offers credit cards to the person who has a regular income. This person can be any working (salaried) or self-employed guy.

Sometimes banks can offer credit cards to their In-house customer too.

These customers could be savings account holders who can maintain the account with a regular or high amount. 

But if you are not an in-house customer of the bank then you must have a good credit score.

Credit Card With Low Credit

You can hide anything from your friends and family. But you can not hide your low credit score from any bank.

Many credit rating agencies, like CIBIL, Experian, TransUnion etc manage your data and share it with the banks on regular basis.

So if your credit score is below average or required by the bank your Credit Cards and Loan application will get rejected.

If your card applications are getting rejected multiple times due to low credit then do not apply again and again.

You can contact any bank branch and ask for a secure credit card.

What is a Secured Credit Card?

A secured credit card or card against a Fixed Deposit is a credit card that you get on behalf of your deposits.

Banks offer this credit to the person who is not eligible for any regular credit card due to low credit or any other terms.

Some private banks like Axis Bank, ICICI Bank, HDFC Bank, Kotak Bank, and Government sector banks like State Bank Of India (SBI), Syndicate Bank, and Central Bank of India, are offering Secured Credit Cards.

You can apply for a Secured Credit Card with a minimum fixed deposit of 25K. Generally, the bank offers an 80% amount as your credit limit.

So if you want a high-limit credit card you can deposit a large amount for FD in the bank.

Benefits Of a Secured Credit Card

Because you are applying for Credit Card which is against your amount you will get the card within 7 working days.

A secured Credit card will work like any other regular credit card in India.

Your card will come with a security pin and other features. You can use this credit card for Shopping, Bill payments, Online transactions, Recharges, Travel Bookings, Railway & airline ticket booking etc. 

Like any other credit card, this card will also have an Annual fee, a Grace period, and a fixed credit limit. 

You can not use your credit card more than your total credit limit.

If you have a low credit score then a secured credit card is the best way to rebuild your credit. As you use your credit card and pay your monthly bills on time.

The bank shares your monthly payment reports with credit agencies. And the positive report will help you to gain some new credit points.

How To Apply For Secured Credit Card?

You can visit your nearest bank branch and make a Fixed Deposit of some amount. The bank offers a good ROI on Fixed Deposit accounts.

After opening an FD account ask the bank representative to apply for a Secured Credit Card against your Fixed Deposits.

There is no need to submit any extra documents as you have already submitted them. After application approval, within seven working days, you will receive your credit card.

As I earlier confirmed bank will offer you 80% of your FD amount as your card limit so if you want a high credit limit then make an FD with a high amount.  Initially, you can get a card against 25K fixed deposits. 

Note: Your card will only work till you have your Fixed deposits in the bank. While you will withdraw your FD card will stop working.

And if in any case, you are unable to repay the card bill bank will pay that bill amount from your Fixed deposit account. 

So if you are also facing rejections on your Credit Cards and Loan applications. Or you don’t have any Credit Score/ Income source yet.

You can apply for a credit card with low credit against your Fixed Deposit.