Credit Score: If your credit score is bad, don't worry, you can get a personal loan and credit card through these 5 Jugaad..

Maintaining a clean credit profile and a good credit score or CIBIL score is essential to avail a personal loan or credit card. A credit score is a 3-digit number that reflects your creditworthiness, repayment integrity, and past credit history. In India, it usually ranges from 300 to 900. A score of 750 or above is considered very good and increases the chances of loan approval and getting a credit card.

A credit score of 670 is not considered a healthy credit score in India. Such a score may cause problems when applying for a new credit card or personal loan. However, some strategies can increase the chances of approval despite a low credit score.

5 ways to get a credit card with a credit score of less than 670

1. Choose a secured credit card
For people who have a poor credit score or no credit history or are unable to get a regular credit card for some reason, a secured credit card can be a better option for them. A secured credit card is a card obtained against a collateral deposit. This card is given against a fixed deposit. Most secured cards have a limit of 80-90 percent of the FD.

2. Consider an add-on credit card
If your family member has a primary credit card, you can request an add-on card. This will give you the benefit of their credit history, which will help you build your credit profile and a healthy credit score.

3. Apply for a card from smaller banks or NBFCs

Many smaller banks and NBFCs have more flexible credit terms and may offer credit cards even to applicants with lower credit scores. In such cases, borrowers may have to meet several other eligibility criteria, such as paying higher interest rates, lower credit limits, and less flexibility in repayment schedules. Such banks or companies may also consider your income stability, tax filing status, and past employment history.

4. Demonstrate sobriety and financial stability
If you can provide proof of stable income with salary slips, income tax return documents, etc., such documents can enhance your credibility and the chances of your application getting approved. Lenders look for honest people, have a proper source of income, and are sincerely willing to pay EMIs and credit card bills on time.

5. Improve your credit score

Pay bills and EMIs on time.
Keep the Credit Utilization Ratio (CUR) low
Maintain a long credit history

Take care of your credit mix
Reduce hard inquiries
Check your credit report regularly

Disclaimer: This content has been sourced and edited from News 18 hindi. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.