If you’re thinking about applying for your first credit card and don’t have a CIBIL score yet, this article is for you. Getting a credit card can give you the financial freedom to buy that new phone or go on that grand vacation without having to worry about how much money you have to spend. As such, many people are eager to get their hands on a credit card as soon as possible in order to increase their FICO score with time. But what does it mean when your FICO score isn’t good enough? This article will explain everything you need to know about getting a credit card without a CIBIL score or lower.
CIBIL or Credit Score
Credit scores are used to determine your creditworthiness, which determines your credit limit, the interest rate you’ll be charged on your loans, and even the price you’ll pay for insurance products like car insurance and home insurance. Having a low credit score can result in things like paying a higher interest rate on your loans, being denied car loans, and making it difficult for you to qualify for a mortgage.
Credit scores are calculated using a variety of data like past payment behavior and credit report information to determine how likely you are to be able to repay your debts. The FICO credit score ranges from 350 to 990. The higher your FICO score, the better your credit is, and the easier it will be to get approved for a loan or credit card. The FICO credit score ranges from 350 to 900.
Types of Credit Scores Used To Get Cards
There are many different types of credit scores used to determine your credit score. The most common types of credit scores are the FICO credit score, VantageScore, and the 6-digit credit score (where the first two digits are the most important). The key to having one of these types of credit scores is to improve your credit score over time.
Understanding Your FICO Score
What is a FICO score? A FICO score is a type of credit score used by credit card companies and other lenders to determine your creditworthiness. Credit scores are calculated using a variety of data like past payment behavior and credit report information. The most important factors in calculating your credit score are the amount of credit you use and how long you keep it open.
Fair Isaac Corporation first developed the FICO score in 1989. Most lenders use the FICO score to determine your creditworthiness before making any lending decisions. This three-digit FICO score ranges from 300 to 900. So, having a good credit score above 750 can help you avail of loans at lower interest rates.
Also Read: What is a Good Credit Score How Can You Achieve a Good Credit Score
The Range And The Credit Rating Used By FICO
| CREDIT SCORES | CREDIT RATINGS |
| 800 to 900 | Exceptional |
| 740 to 799 | Very Good |
| 670 to 739 | Good |
| 580 to 669 | Fair |
| 300 to 579 | Poor |
How FICO Calculates Your Credit Score
| Percentage (%) | Credit Factors |
| 35 percent | Payment history |
| 30 percent | Amounts owed |
| 15 percent | Length of credit history |
| 10 percent | Credit mix |
| 10 percent | New credit |
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Don’t Have a CIBIL Score? Get Solution for the Approval
- Go through the application process as you normally would with the credit card company. If you’re denied, your application may not have been submitted with your correct information.
- Check your credit score regularly and take steps to improve it before applying for another credit card.
- Once you have a card, make on-time payments.
- Paying interest is one of the biggest factors that can lower your credit score. Keep that in mind when making purchases.
- Pay off your credit card balance every month as it can lower your credit score.
Also Read: How To Apply For A Credit Card Online Tips and Tricks to Get the Approval
Important Things to Remember When Getting a Card
- Get a secured credit card first.
- Take advantage of the sign-up bonus.
- Be diligent with monitoring your credit score and making payments.
- Never carry a balance on your card.
- Keep your credit utilization as low as possible — less is more.
Conclusion
If you’re thinking about applying for your first credit card and don’t have a Cibil score yet, getting a credit card can give you the financial freedom to buy that new phone or go on that grand vacation without having to worry about how much money you have to spend. As such, many people are eager to get their hands on a credit card as soon as possible in order to increase their FICO score with time.
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