Credit cards are very tempting because of the benefits they provide like an interest-free loan for a short duration, rewards points, offers, and discounts in online and offline stores. But very few people get the approval for a credit card when applied because of their low income and CIBIL score.
And the reason your job and income proof is needed for a credit card is that the card issuer is giving you a loan that can be used through the card, and if you can’t repay the amount borrowed then it’s a loss for the issuer.
Your CIBIL score also reflects your creditworthiness as it is calculated by your salary and loan defaults and timely repayments, and many times bank requires your CIBIL score to be good in order to get a credit card approved in your name.
How to Get a Credit Card in India?
You can apply for a credit card at the bank where you have your bank account opened. Almost all banks provide a wide array of different kinds of credit cards having different perks and facilities.
- A credit card application usually asks for your CIBIL score and income proof.
- The application procedure takes days and weeks with several verifications.
- Banks usually try to confirm your creditworthiness that if you’re given to borrow a certain amount from the card issuer, can you repay the amount on time or not?
- After verifying with several phone calls and also a physical verification, if the bank finds you capable of repaying, your credit card gets approved very easily giving you a credit limit as per your creditworthiness.
- And if the bank has any doubt, or it finds a discrepancy in the application form, then the application will be rejected and you’ll be asked to re-apply after some months have improved your credit score.
What is CIBIL Score?
CIBIL Score is a three-digit number ranging from 300 to 900 that tells your creditworthiness. It is calculated using your credit history data found in the Credit Information Report that contains month-on-month records of your loan-related EMI payments and/ or credit card payments.
This credit score plays a very big role in approving your credit card because whenever you approach a bank or NBFC for a loan or credit card, they first check your CIBIL score and credit report. If your score is above 700, you can quickly get a lot or a credit card, but it’s a bit difficult if your credit score is below that.
So now, let’s talk about the procedure to get a credit card without a CIBIL score or income proof. And this is a very easy and hassle-free process for a beginner or a student who hasn’t got any credit card or any sort of loan before this.
Credit Cards without Income Proof or CIBIL Score
In order to get a credit card without a job, income proof, or CIBIL score, you have to make the card issuer believe that their money isn’t going anywhere and you’ll certainly repay the borrowed amount. And this can be done through a security deposit which can grant you a loan with the terms that the bank can recover the outstanding amount through this security deposit if you default.
Many banks like SBI, ICICI, Axis Bank, and Kotak Mahindra Bank offer credit cards against fixed deposits (also called secured credit cards). The amount which you’re depositing here as an FD (fixed deposit) ensures the bank that this amount isn’t going anywhere unless the FD gets matured or broken, and the bank can recover the borrowed money if you can’t pay the outstanding amount of your credit card.
These types of cards are called secured credit cards because the card issuer here is being ensured the security of their loan amount through a fixed deposit as collateral. And you usually get a credit limit of 80-90% of your FD.
If you apply for a credit card against FD, your card gets approved in real-time, in just seconds contrary to a normal credit card where the approval process can go for weeks and months. Here are some of the credit cards which you can get approved against a fixed deposit.
|Credit Card||Minimum Fixed Deposit|
|ICICI Bank Instant Platinum Credit Card||Rs. 20,000|
|Axis Bank Insta Easy Credit Card||Rs. 20,000|
|SBI Unnati Credit Card||Rs. 25,000|
|Kotak Mahindra Aqua Gold Credit Card||Rs. 25,000|
|ICICI Bank Coral Credit Card||Rs. 20,000|
|Bank of Baroda Assure Credit Card||Not Available|
|Andhra Bank Visa Platinum||Rs. 10,000|
Benefits of Credit Card Against Fixed Deposit
Credit cards against FD work the same as any normal credit card. You can use these credit cards for online payments, offline payments on PoS machines, and also for cash withdrawals at ATMs. The only difference is that a credit card against FD is your own money being allowed to borrow while enjoying the interest on the fixed deposit.
If you’re a student or you don’t have a job, then you can get a credit card against FD without thinking of credit score or income proof. The biggest reason why you should get one is that if you use your credit card and pay the bills on time, this small habit can build your credit score in some years, and then you can close this card and apply for a normal credit card. That time, you’ll easily get credit card approval because of your good credit score.