You might have heard that it is not possible to apply for a credit card if your CIBIL credit score is low, zero or null.
That’s partially correct, but not 100% true. If you can quickly tell me why you need a credit card, then I can show the best ways to get one.
15 years ago (in 2004) I got a credit card from India’s leading financial institution when my CIBIL score was low. Fortunately, the same bank is still issuing the same credit card even today!
Before reading further, let me give you some info about the purpose of credit cards & why people use it.
- People use credit cards for ease of payment, mostly online.
- Credit cards help you to keep track of expenses & to settle bills once in a month.
- To earn rewards, cashback points etc.
- Enjoy an interest free credit facility of 45 – 60 days depending on card issuer.
Point 1-3 can be served through a debit card alone. However, if you need a credit facility and interest free credit period, then you need a credit card.
Back in 2004 only credit cards could have been used online for payment and to buy products. I desperately wanted a credit card to buy domain names for my online business and to pay for web hosting services. I also needed to link a credit card to my Paypal account just to verify it!
I had a debit card from SBI, but it was useless for online payments. Back then, there were no Indian companies for domain registration and website hosting.
One day the bank’s credit card salesman introduced me to a unique credit card called “SBI Advantage Card”, which is backed by a fixed deposit. The main feature of the card are.
SBI Advantage Card
Make a FD of Rs 20,000/- and pledge it for a credit card
The credit limit is 80% FD
The FD continues to earn interest till maturity.
That’s how I got my first credit card of life and that’s how I was able to get a CIBIL credit profile so early in my life.
You have to visit your nearest SBI branch to apply for this card.
Kotak Mahindra Bank 811
Recently Kotak Mahindra Bank also started a similar credit card offer with zero balance online bank account. It’s called as ‘Kotak 811 Account’
You can open a zero balance savings account by booking a Rs 10,000/- FD. You get a credit card with a limit of Rs 8,000/-. That’s pretty decent to get CIBIl credit profile.
You can open Kotak 811 account completely online without video KYC. Just ensure that your mobile number is linked with Aadhar card. You also need a PAN card
Once you get the credit card start using it regularly and make payment on time before the due date. Within 3 – 6 months of time you’ll have a decent credit score and you can apply for a better credit card with other financial institutions with higher limits.