Want to know the minimum CIBIL score required for SBI credit card? Well, the State Bank of India offers a variety of credit cards and other financial services to the customers to purchase different products and pay later in easy installments. People who are seeking to apply for an SBI Credit card need to maintain a minimum CIBIL score. People wish to enjoy unlimited benefits offered by a myriad of credit cards alongside the credit limit. But, maintaining a minimum CIBIL score is equally important for those who are seeking to apply for an SBI Credit Card.
The CIBIL Score of an individual shows the past repayment history and their track record. Due to a very low CIBIL Score, the application for an SBI Credit Card gets rejected in the case of some people. Individuals who maintain a CIBIL score of 750 and above can get a possibility to negotiate the interest rates. On the other hand, the bank also shows interest in approving an SBI Credit card for those who have a good income and maintain a decent cibil score. Here is a detailed guide about the minimum CIBIL score required for SBI credit card that covers the reasons behind the credit card rejection, the significance of the CIBIL score, and more. Have a glance!
Table of Contents
- Importance of CIBIL Score To GET SBI Credit Card
- Minimum CIBIL Score Required for SBI Credit Card
- Most Common Reasons for SBI Credit Card Rejection
- Tips to Improve Your CIBIL Score
Importance of CIBIL Score To GET SBI Credit Card
A CIBIL Score is referred to as the credit score of a consumer comprising a 3-digit number that usually ranges between 300 and 900. CIBIL Score offers the credit history of the consumer that eventually reflects the credit profile of the credit cardholder. Most of the credit card issuers and finance companies check whether the consumer maintains a good CIBIL score or not. The CIBIL Score indicates the creditworthiness of the customer.
People who maintain a high CIBIL score have a higher chance of getting a quick loan or credit card approval. Individuals looking forward to applying for an SBI Credit Card need to have a minimum CIBIL score of 750. For such applicants, an SBI credit card will be approved easily without much hassle. In case of maintaining a low CIBIL score i.e., below 750, it might lead to the rejection of the SBI credit card application. Through this statement, you might have understood the significance of the CIBIL Score.
CIBIL Score is just like a brand mark or acts as a scorecard to the financial integrity of the consumer. Just by looking at the CIBIL score, the lenders will have the assurance to issue a loan or approve a credit card to the customers. In case, the lenders have any small doubt that whether the customer can repay the credit amount on regular basis or not, they don’t show willingness towards issuing a loan or approving a credit card. Here are some of the key factors that chronicle the importance of CIBIL Score for easy SBI credit card approval.
1. Easy and Secured Loan Approval
The SBI Credit Card lenders will look into the credit track record of the consumer to approve a loan or credit card to the customers. Based on the credit score, the rate of interest and the upper limit will be decided by the lenders. The entire process of credit card issuance or approval becomes quick and easy for those who maintain a decent credit score. In the case of maintaining a poor or low CIBIL score, the whole process becomes intricate for the consumers.
2. Ability to Bargain on Interest Rates
With a good credit score, the individuals can have the power to bargain on the rate of interest offered to the customers. The rate of interest differs at different banks for various types of loans or credit card applications. People whose CIBIL score is higher, get the power to bargain on the interest rates. Customers will get a chance to compare the interest rate offers provided by the credit card issuers and they can further carry out the necessary negotiation on the interest rates.
3. Possibility to choose the Best Credit Card
People who pick Credit Cards wisely can utilize a myriad of benefits. Different types of credit cards are offered by the SBI authorities to its customers. Based on the SBI credit card eligibility CIBIL score, applicants can select their preferred credit card. This chance of picking the right card helps the customers to acquire a low interest or interest-free period.
Even if you miss or skip a single payment, the rate of interest on credit cards will rise substantially. The credit card lending firms will join hands with one another to offer the best deal while choosing the credit card benefits to the customers who have a good CIBIL Score. Hence, be careful while choosing the best credit card so that you can avoid higher interest rates.
4. Enjoy a Minimal Insurance Premium
Insurance is one of the major services offered by various financial companies to customers. Considering the CIBIL score, insurance companies offer a variety of insurance services such as medical insurance, life cover, and much more. Most of the insurance firms keep a track of the customer’s repayment history, the way the consumer handles all debts and dues, claims history, and more. This way, the insurance firms can understand whether they can enjoy a lower premium in comparison to the remaining policyholders who have a minimal credit score.
5. Quick Approval of Asset-free Loans
CIBIL Score also shows an impact on the duration for the approval of unsecured loans. CIBIL Score plays a vital role at the time of loan application sans any security. For instance, personal loans are issued to the customers based on the SBI credit card eligibility CIBIL score. In case, you have been maintaining a CIBIL score of more than 750 then, your unsecured loan can be approved quickly without any security. In case, your CIBIL score range is more than 800 then, the lenders show immense interest to offer you a greater amount than offered usually by the SBI bank.
Minimum CIBIL Score Required for SBI Credit Card
The minimum CIBIL score required for SBI credit card is 750. SBI considers a CIBIL Score of 750 and above as a good credit score. It becomes helpful in the case of customers who are seeking to get a credit card application approval quicker or for faster loan approval. A CIBIL score ranging between 550 – 749 is a medium credit score. Despite having some risks to the credit card lender, the customers can get their credit card approved.
However, such individuals can get approval for the credit card application only if they meet the necessary SBI credit card eligibility CIBIL score as per the rules of the SBI Card. In case, the CIBIL Score is below 550 then, it is considered an extremely risky thing for the lender as the customer doesn’t maintain any financial discipline by making irregular monthly payments. As a result, the low CIBIL score maintained by the customer leads to the rejection of the SBI Credit card.
Most Common Reasons for SBI Credit Card Rejection
The minimum CIBIL score required for SBI credit card has a massive impact on the approval or rejection of a credit card. SBI Credit Card issuers might assume that the person maintaining a low CIBIL score has a higher risk as they may not be able to pay the monthly credit card installments without fail. However, this may not be true in all cases.
Despite paying the monthly installments regularly on the credit card, the customers couldn’t have a minimum CIBIL Score. Even in such cases, SBI would approve credit card applications from the applicants maintaining a low CIBIL score. Still, SBI will levy higher interest rates or offer a lower credit limit to such borrowers.
Before the approval of an SBI credit card, the State Bank of India carries out all sorts of verifications on the credit history of the consumer to make sure that the person won’t miss paying the credit card installments. SBI gives such people a chance to handle their credit cards in such a way that they try to improve their CIBIL score.
Some of the major reasons behind the rejection of the SBI Credit Card include the following:
- Low credit score
- Employment in a delisted private company
- Doesn’t have an eligible age limit
- Low Income/Salary
- No Guaranteed Employment
- Residing in a location that comes under the defaulter list
- Multiple Credit Card applications
- Incompatible Credit Report
- Late Payments
Tips to Improve Your CIBIL Score
Want to improve your CIBIL score required for SBI credit card? Have a low CIBIL Score? Don’t worry, it’s not the end of your life, right! Just focus on some of the tips curated in this post that helps you to improve the CIBIL Score. It might take at least 6 months to witness a significant change in the credit score and noteworthy improvement on the credit report. We have furnished some of the significant tips to improve your CIBIL Score required for SBI Credit Card. Check it out!
1. Check Your Latest Credit Report
The first and foremost thing to do to enhance your CIBIL score is to check your latest credit report. By taking a quick look at the credit report, you will understand the current position and what mistake you have done for the decrease of the CIBIL score. Sometimes, you might have delayed your credit payments. It could be the reason behind your low CIBIL score. So, try to rectify your mistakes and be an early bird in making regular payments of the credit amount.
2. Handle Your Debts Wisely
Another tip to improve your cibil score is to handle the debts brilliantly. It is very well understood that a credit card usually functions in a revolving mode. If the cardholder remains negligible, the dues become a huge bulk. If you find such a thing in your case, the smart way is to close off the credit card dues by applying for a personal loan. This way, you can pay minimal interest and resolve the problem smartly.
3. Minimize Your Credit Debt
For instance, the lender offers you a maximum credit amount on the card of up to Rs. 2 lakh, then it doesn’t mean you to completely use it. Make sure that you don’t nil the balance of debt to income ratio.
4. No Postponement of Monthly Payments
Despite the rapid advancement in technology, CIBIL Score maintenance should be done properly. One should pay the due amount on time to evade the decline of the cibil score. Try to make timely payments without postponements.
5. Maintain a Diverse Credit Record
If you maintain a diverse record of credit by acquiring a variety of secured loans such as home loans, car loans, and unsecured loans such as a personal loan or credit card, you can have higher chances of increasing a cibil score.
6. Avoid Long Tenures
The tenure or duration of a loan or the credit also shows a significant impact on your cibil score. For instance, your personal loan tenure is 4 years and you have enhanced the tenure in the middle of the personal loan and lessened the monthly EMI then, it leads to a significant drop in your cibil score.
That’s all! This is everything you need to know about the detailed guide about the minimum CIBIL score required for SBI credit card. We assume this guide about the SBI credit card eligibility CIBIL score has given adequate information on this topic. For more doubts or queries ask us in the comments space. Feel free to ask your doubts so that we try to give appropriate answers very soon in the comments section. Stay tuned to this website for more related posts on SBI Credit Card, CIBIL Score, and more. For more articles based on types of credit cards offered by SBI, available loans, and more, visit MoneyCompass regularly.