What Is the Easiest Credit Card to Get with a Bad Credit Score?
Having a bad credit score makes you a risky borrower in the eyes of the lender. It comes with wide-ranging consequences, including difficulties in acquiring credit and higher interest rates on loans. In some cases, it can be hard to find a job with a poor credit score. However, all is not lost as there are still some options to access credit with a bad credit score.
There are several credit cards that people with bad credit scores can apply for. Keep reading to know more about how you can get such a card and the best cards to get with a low credit score.
How to Get a Credit Card with a Bad Credit Score?
As we discussed, you can get a credit card even with a low credit score. However, you would not get the same amount of rewards and perks for such cards as someone with a good credit history. Here are the three financing options for people with low credit scores:
- Secured Credit Cards
Normally, credit cards are an unsecured form of credit where the issuers check your creditworthiness as an eligibility criterion. Most financial institutions do not offer cards to people with bad credit.
However, in such cases, you can get a credit card by pledging high-value collateral. Based on the value of the collateral, you will be given a credit limit.
- High-Fee Unsecured Credit Card
You can choose an issuer that offers you a credit card without needing a high score or requiring collateral or even any deposit amount. However, such cards levy a high maintenance charge for this facility.
Ideally, you can use this card to rebuild your credit score and then transition to a more suitable card.
- Credit Card Issued by Primary Bank
In most cases, banks allow their customers to avail free credit card facilities. Banks may offer these cards, even if you have a poor credit score.
Many times, banks also approve a credit card application, if you have been a long-time customer of that respective bank. This is because they already have a good understanding of your financial behaviour and risk profile.
Best Credit Cards to Get with Bad Credit Scores in India
The best offer available to you, if you want to get a credit card with a low credit score, is to get a secured card. It is the best way to improve your credit score, so that you can subsequently opt for a card with better offers. Here are the best secured credit cards that you can get with a poor credit score:
- SBI Advantage Plus Credit Card
To keep using the SBI Advantage Plus Credit Card, you need to pay an annual fee of ₹500 and a renewal fee of ₹500.
There are several benefits that you will get from this card. Apart from its global acceptance, you will also have the privilege of having a supplementary credit card. You will also get the facility of Flexipay by which your transactions can be converted into EMIs which you can repay every month. You will also get a 100% cash withdrawal limit.
- ICICI Bank Coral Credit Card
- Axis Bank Insta Easy Credit Card
To get the Axis Bank Easy Credit Card, you need to pledge a fixed deposit of at least ₹20,000.
You will get a number of benefits on this card. You can earn 6 rewards based on domestic spending of ₹200. Moreover, you will also get 12 rewards based on international spending ₹200. Furthermore, the card offers a 1% fuel surcharge waiver at all gas stations. You will also get 15% off on dining at all partner restaurants.
- ICICI Bank Instant Platinum Credit Card
You can get the ICICI Bank Instant Platinum Credit Card by making a fixed deposit of ₹20,000. There is no additional fee or joining fee involved.
You will be getting several benefits. This includes a contactless credit card feature which helps in making quick and secure payments. You will also get payback points which you can redeem for various gifts and vouchers. This card also offers fuel surcharge waivers across all gas stations in India and at least 15% discounts on dining at partner restaurants.
- Yes Prosperity Rewards Plus Credit Card
For getting a YES Prosperity Rewards Plus Credit Card, you will need to make a fixed deposit of ₹50,000. Apart from that you will also have to pay a joining fee of ₹350 and an annual fee of ₹350.
You will be getting several benefits from this card. On spending ₹5,000, you will get 1,250 reward points. You will also get 15% discounts on dining in certain restaurants. On spending ₹3.6 lakh annually, you will get 12,000 bonus reward points. Apart from that, you will also get a fuel surcharge waiver at all gas stations in the country.
Disadvantages of Getting a Credit Card with a Bad Credit Score
You can get a credit card even with bad credit. However, there are several disadvantages associated with it. Some of them are:
- You will get a lower credit limit on such cards as compared to the cards offered only with a good credit score.
- You will also get very limited benefits from these cards.
- There are a limited number of choices for these types of cards.
- You will also have to pay higher interest charges, late fees and other penalties on these cards if you have a poor credit score.
You do not need to worry about not getting a credit card if you have a low credit score. There are options available for getting a card with a bad credit score. One of the best options is secured cards, through which you can increase your score to avail the cards and their benefits offered only with a good credit score.
Frequently Asked Questions
What is considered a bad credit score?
A person who has a poor credit score is considered to have a bad credit score. If you have a credit score of less than 650, it is considered a bad credit score.
Can I get a credit card with a credit score of 550?
It becomes hard to get a card with such a low credit score. However, such people can apply for a card with their primary bank or a secured card or even a card with higher fees.
What types of credit cards can I get with a bad credit score?
The best cards, which will also be the easiest to avail with a bad score, are secured cards, student cards, and credit builder cards.
Which banks provide secured credit cards?
There are several banks which will provide secured cards with low scores. Some of them are the State Bank of India (SBI), ICICI Bank, HDFC Bank, Axis Bank, Bank of Baroda and Kotak Mahindra Bank.
What can I do to improve my bad credit score?
There are several things that you can do to improve your bad credit score. Pay your bills and EMIs on time. Keep in mind your credit utilisation ratio. Do not apply for multiple loans or cards in a short period. Lastly, try to maintain a mix of unsecured and secured debt.