Yes, obtaining a credit card with a low CIBIL score may be possible, depending on the lender's eligibility criteria and overall credit assessment. Secured credit cards backed by a fixed deposit are often considered by individuals with limited or weaker credit profiles, while eligibility for unsecured credit cards varies across lenders. Responsible credit usage, timely repayments, and prudent credit utilisation may contribute to gradual improvement in credit history over time.

What CIBIL Score Do You Need for a Credit Card?

There is no universal minimum CIBIL score required for a credit card. Eligibility criteria differ across banks, NBFCs, and card issuers. In addition to credit score, lenders may consider factors such as income, employment profile, existing debt obligations, repayment history, and internal risk assessment policies when evaluating a credit card application. 

A score below 600 makes most standard credit card applications very difficult. Lenders in this range typically only consider applicants who can place a fixed deposit as collateral. Between 600 and 650, secured cards become reliably accessible, and some entry-level unsecured cards open up, particularly at NBFCs and newer digital lenders. From 650 to 700, more options are available, though premium or high-limit cards may still require further conditions. Above 700, the majority of credit card products become accessible.

In practice, applicants with stronger credit profiles may have access to a wider range of card products. However, approval remains subject to individual lender policies, eligibility criteria, and credit assessment processes.

Score Ranges and Card Eligibility at a Glance

Note:Availability is indicative only. Approval, card type, and credit limits vary by lender and are subject to credit assessment and internal policies.

Types of Credit Cards Available for Low CIBIL Scores

Not all credit cards have the same eligibility bar. For borrowers with low scores, three categories are most relevant: secured cards, entry-level unsecured cards, and prepaid or credit-builder products. Each serves a different applicant profile.

Secured Credit Cards: How They Work

A secured credit card is backed by a fixed deposit you place with the issuing lender. The lender holds the FD as collateral and issues a card with a credit limit typically set at 75-85% of the deposit amount.

Worked example: A fixed deposit of ₹20,000 typically yields a credit limit of ₹15,000-₹17,000. A deposit of ₹15,000 yields a limit of ₹11,250-₹12,750.

The card functions exactly like a standard credit card. The lender reports your repayment behaviour to CIBIL each month. On-time payments over 6-12 months can improve your score by 30-80 points, depending on your starting position and overall credit profile.

One actionable tip: set up auto-pay for at least the minimum amount due as soon as the card is activated. A single missed payment on a secured card can undo months of score progress.

Who should apply: Anyone with a CIBIL score below 650 who has ₹10,000-₹1,00,000 available to place as a fixed deposit and wants a reliable, structured path to rebuilding their credit history.

Entry-Level Cards for First-Time Applicants

Some lenders, particularly NBFCs and digital-first card issuers, offer entry-level unsecured cards to applicants with scores between 600 and 650. These cards typically carry a lower credit limit (₹10,000-₹25,000), basic rewards structures, and simplified KYC requirements.

Minimum income requirements vary across issuers and card products. Eligibility is assessed according to the lender's credit policy and underwriting framework. Responsible use for six or more months can qualify you for a credit limit enhancement or an upgrade to a better product, without needing a fresh application.

Who should apply: First-time credit users with a score in the 600-650 range, a stable monthly income, and no prior defaults on record.

Prepaid and Credit-Builder Cards

Prepaid cards allow you to load money in advance and spend within that balance. They are accessible regardless of CIBIL score but carry an important limitation: most prepaid cards do not report repayment behaviour to CIBIL, so they do not help build your credit history.

Some credit-builder products do report to CIBIL, but you should confirm this with the issuer before applying. If credit history improvement is your goal, a secured FD-backed card is the more reliable choice.

Who should apply: Individuals who need a card for digital transactions only and are not yet focused on credit score improvement.

Eligibility Criteria for a Low CIBIL Score Credit Card

While credit score is an important factor, lenders may also evaluate age, income, employment profile, existing repayment obligations, banking relationship, and overall credit behaviour when assessing a credit card application.

• Age: Applicants must generally be between 18 and 65 years old. Add-on cardholders can sometimes be younger.

• Income: Salaried applicants typically need a minimum monthly income of ₹15,000. Self-employed applicants are assessed on the basis of their last two years’ ITR.

• Employment type: Salaried applicants in stable employment face fewer hurdles than self-employed or contractual workers.

• Existing lender relationship: If you hold a salary account or fixed deposit with a lender, you may receive pre-approved or faster-track card offers.

• Debt-to-income ratio: Debt-to-income levels may form part of a lender's internal assessment framework, although acceptable thresholds vary by institution.

• Credit utilisation ratio: Lower credit utilisation is generally viewed more favourably in credit assessments and may support healthier credit behaviour over time

Guidance by Applicant Type

The approval barriers differ depending on your credit situation. Here is what each type of applicant should know.

First-time credit users with no CIBIL history: A thin credit file, where CIBIL returns an NH (No History) or NA (Not Applicable) rating can actually be less problematic than a low score from defaults. Secured cards and entry-level products are available, and building a history from zero is often faster than recovering from a negative one.

Borrowers recovering from a default 2-3 years ago: Lenders look at the recency and severity of the default. A single default from 2-3 years ago, followed by clean repayment behaviour since, is viewed more favourably than a recent default. Start with a secured card, maintain spotless repayment for 12 months, then consider an unsecured product.

Self-employed individuals without ITR: Without ITR documentation, lender options narrow significantly. A secured FD-backed card is the most accessible path. Establishing a current account with a lender and building a banking track record over 6-12 months can support a future application.

How to Improve Your CIBIL Score to Get Better Cards

Improving your score is not complicated, but it requires consistency over time. A disciplined borrower can typically move from 600 to 700+ in 12-18 months by following this four-step plan.

Step 1: Check Your CIBIL Report for Errors

CIBIL provides one free credit report per year through its official website. Review the report carefully for errors, incorrect loan accounts, wrongly marked defaults, or accounts that do not belong to you. Raise a dispute through CIBIL’s online portal; dispute resolution timelines may vary depending on the nature of the dispute and the response received from the concerned credit institution. Even one corrected error can move your score meaningfully.

Step 2: Pay All Current EMIs and Bills on Time

Payment history is generally considered an important factor in credit score calculation. A single missed payment can lower your score by 50-100 points. Set up auto-pay on every account to eliminate the risk of accidental misses.

Step 3: Reduce Your Credit Utilisation Below 30%

Lenders report your card balance to CIBIL every month. If you are consistently using 70-80% of your credit limit, your score suffers even if you are paying on time. Pay down existing balances or request a limit increase to bring your utilisation ratio down.

Step 4: Avoid Multiple Hard Enquiries Within Six Months

Every credit card or loan application triggers a hard enquiry. Multiple credit applications within a short period may influence a lender's assessment of creditworthiness and may affect credit score calculations. Three simultaneous applications can drop a score from 620 to 590, pushing you further from approval thresholds. Use lenders’ soft-enquiry eligibility checkers before submitting any formal application.

Important Note: Credit information is updated periodically by lenders and reflected in credit bureau records after processing cycles. The timing of score updates may vary depending on reporting schedules and bureau processing timelines.

Factors That Influence Credit Score Improvement

The pace of credit score improvement varies across individuals and depends on factors such as:

• Timely repayment of existing credit obligations 

• Credit utilisation levels 

• Outstanding debt levels 

• Number of recent credit enquiries 

• Length of credit history 

• Accuracy of information reported to credit bureaus 

Because every credit profile is different, no fixed timeline or score increase can be guaranteed.

Alternatives to Credit Cards When CIBIL Score Is Very Low

Individuals who do not currently meet the eligibility criteria for a credit card may explore other credit products that are available subject to lender policies and applicable regulations. Product suitability, costs, repayment obligations, and reporting practices should be reviewed carefully before proceeding.

Gold loans offer immediate credit against gold jewellery or coins, where eligibility is primarily linked to the value and quality of eligible pledged gold, subject to the lender's policies and applicable regulations. Timely repayment of a gold loan can help you improve your credit score, as it is reported to CIBIL bureau and contributes directly to your credit history. IIFL Finance gold loans start from min. ₹3,000, with quick disbursal at over 3000+ available gold loan branches across India. You can check gold loan interest rates and calculate your gold loan eligibility before visiting a branch.

Personal loans from NBFCs may evaluate additional factors beyond credit score, including income stability, repayment capacity, and overall credit profile. Income stability, employer type, and banking history can compensate for a lower score in some cases. 

Buy-now-pay-later (BNPL) products provide short-term credit for online purchases. However, not all BNPL providers report repayment behaviour to CIBIL. If credit building is your goal, confirm the provider’s reporting practices before using BNPL as a credit-building tool.

These alternatives work best as a bridge strategy, a way to access credit and build history while your score recovers, not as permanent substitutes for a structured credit facility.

Step-by-Step: How to Apply for a Credit Card with a Low CIBIL Score

Step 1: Check Your Current CIBIL Score

Access your free annual CIBIL report at the official CIBIL website. Confirm the score and review the report for any errors before taking the next step.

Step 2: Match Your Score to the Right Card Tier

Use the eligibility table in this guide to identify which card type your score supports. Applying for a card outside your score range may reduce the likelihood of approval and may result in additional credit enquiries.

Step 3: Gather Your Documents

Standard requirements: PAN card, Aadhaar card, last three months’ salary slips (salaried applicants) or last two years’ ITR (self-employed), and a recent bank statement. For secured cards, also arrange proof of the fixed deposit you intend to place.

Step 4: Apply Online or at a Branch

Online applications typically process faster. If applying for a secured card, ensure the fixed deposit is in place or can be opened simultaneously with the card application at the same institution.

Step 5: Activate and Set Up Auto-Pay Immediately

Once the card is approved and received, activate it and set up auto-pay for at least the minimum amount due. This single step protects your score from accidental misses during the credit-building period.

Common mistake to avoid: Do not apply to multiple lenders at the same time. Each application triggers a separate hard enquiry, and three simultaneous applications can drop your score by 15-30 points, potentially moving you below the threshold for the very cards you were applying for.

Conclusion

Obtaining a credit card for a low CIBIL score may be possible depending on the lender's eligibility criteria, credit assessment process, and overall applicant profile. Secured credit cards backed by fixed deposits are commonly considered by individuals seeking to establish or rebuild credit history, while eligibility for unsecured cards generally depends on a broader assessment of creditworthiness.

Maintaining timely repayments, prudent credit utilisation, and responsible borrowing behaviour may support the development of a healthier credit profile over time. Since approval criteria differ across institutions, applicants may benefit from reviewing eligibility requirements before submitting a credit card application.

Individuals who are not currently eligible for a credit card may explore other regulated credit products, subject to lender policies and applicable terms and conditions.

For those not yet ready for a credit card, or having a credit card with low cibil score, a gold loan from IIFL Finance provides immediate credit access with no strict CIBIL threshold, and timely repayment builds the credit history needed for stronger products in the future. Visit the IIFL Finance website for more guidance on lending products and financial planning.

Disclaimer : The information in this blog is for general purposes only and may change without notice. It does not constitute legal, tax, or financial advice. Readers should seek professional guidance and make decisions at their own discretion. IIFL Finance is not liable for any reliance on this content. Read more