popular ng a credit card when you have a low credit score in India requires careful consideration to improve your credit score while avoiding excessive fees and high interest rates. Here are some tips to help you choose the best credit card:
1. Secured Credit Cards
– What They Are: These require a fixed deposit as collateral.
– Why Choose: Easier approval, helps build credit history.
– Example: SBI Card Unnati.
2. Basic Credit Cards
– What They Are: Entry-level cards with fewer benefits but lower eligibility criteria.
– Why Choose: Easier to get approved with a low credit score.
– Example: SimplySAVE SBI Card, ICICI Instant Platinum.
3. Credit Cards from Non-Banking Financial Companies (NBFCs)
– What They Are: Offered by NBFCs with less stringent approval criteria.
– Why Choose: Easier approval process.
– Example: Bajaj Finserv RBL Bank SuperCard.
4. Check for Annual Fees and Interest Rates
– Why: Some cards might have lower fees but higher interest rates, so it’s important to balance the cost.
– Action: Compare the annual fees and APR (Annual Percentage Rate).
5. Look for Cards with Cashback and Rewards
– Why: Even basic cards can offer rewards that add value.
– Example: HSBC Cashback Credit Card.
6. Pre-Approval Offers
– What They Are: Banks sometimes offer pre-approved credit cards.
– Why Choose: Higher chance of approval as banks have already screened your profile.
7. Improve Your Credit Score
– Why: Increases your chances of getting better credit cards.
– How: Timely bill payments, reducing debt, correcting errors in your credit report.
8. Review Terms and Conditions
– Why: To understand the fees, interest rates, and other charges.
– Action: Read the fine print carefully before applying.
9. Check Your Eligibility
– Why: Each card has specific eligibility criteria.
– Action: Use bank websites or financial portals to check your eligibility before applying.
10. Seek Professional Advice
– Why : Financial advisors can provide personalized recommendations based on your financial situation.
popular Low Credit Score Credit Card Options in India:
1. SBI Card Unnati
2. ICICI Bank Instant Platinum Card
3. Axis Bank Insta Easy Credit Card
4. HDFC Bank Secured Credit Cards
5. Kotak Mahindra Aqua Gold Credit Card
Steps to Apply:
1. Research and Shortlist : Based on the above criteria.
2. Check Eligibility : Use eligibility check tools online.
3. Apply Online : Through the bank’s website or financial services portals.
4. Submit Required Documents : ID proof, address proof, income proof, and other documents as required.
5.Wait for Approval : It might take a few days for the bank to process your application.
By following these tips, you can choose a credit card that aligns with your financial situation and helps you rebuild your credit score.