People with low CIBIL score can still get a credit card. Here’s how

Anjali recently finished her graduation and started working as a trainee with a small organisation. In keeping with her newfound financial freedom, she applied for a credit card. But the bank rejected her application as she doesn’t have a CIBIL score! 

Many people - gig economy workers, homemakers, retired people, students, or people with low income - face this situation. They either have a low or no CIBIL score. As a result, their credit card application gets rejected.

The IDFC FIRST Bank's WOW! Credit Card can help overcome this challenge. In this article, we will discuss the IDFC FIRST Bank's WOW! Credit Card, its features, its various benefits, and who can apply for it.

Importance of CIBIL Score in Credit Card Application

While evaluating credit card applications, most banks look at the CIBIL score mainly for two reasons:

• Determining Credit Card Eligibility

Many banks consider a CIBIL score of 750 and above as a benchmark for determining an individual’s credit card eligibility. A no or low CIBIL score can prevent a bank from approving the credit card application.

• Determining the Credit Limit

The CIBIL score is also taken into account while determining the credit limit for a credit card application. A good credit score demonstrates a good repayment track record by the applicant. A low credit score means the bank may feel there is risk involved. In such a case, they may either reject the application or initially sanction a small credit limit. As the cardholder makes monthly bill payments on time, the bank becomes confident and may give a credit limit enhancement offer at a later stage.

So, what should individuals with no or low credit score do to get a credit card? The solution is to get a secured credit card backed by a fixed deposit.

IDFC FIRST WOW! Credit Card

This is a fixed deposit-backed credit card. So, if you wish to apply for this card, you will have to offer your IDFC FIRST Bank existing fixed deposit as security. If you don’t have a fixed deposit with IDFC FIRST Bank, you will have to create one to avail of this card.

The credit limit on the card is 100% of the fixed deposit value. So, if you take the card against the security of a Rs 50,000 fixed deposit, your credit card limit will start from Rs 50,000. Such a card issuance doesn't need any income documents or a stellar credit score.

Existing IDFC FIRST Bank customers can get this card against a fixed deposit of a minimum of Rs 2000. For other customers, the fixed deposit should be a minimum of Rs 5000.

Who Can Apply for the IDFC FIRST Bank's WOW! Credit Card?

The credit card is ideal for:

• Low-income earners

• Individuals with no or low credit score

• Homemakers

• Students pursuing courses within India or abroad

• Retired people

So, any individual with either no income or a low CIBIL score who wishes to get started with their credit card journey can apply for this credit card.

Features and Benefits of IDFC FIRST Bank's WOW! Credit Card

The card comes with a rich set of features and benefits. Some of these include:

• No Fees

The card does not entail any joining or annual renewal fee. So, your credit card is lifetime free. You don't have to worry about spending a specified amount in a year to get your annual fee waived or reversed, as is common with other credit cards.

• Reward Points

The card gives 4x reward points (1x = 1 reward point for every Rs 150 spent). The reward points never expire. Your reward points are as good as cash, as you can redeem them for your next online transaction. The other option is to redeem reward points against gift vouchers from well-known brands such as Amazon, Flipkart, etc. The redemption value of each reward point is Rs 0.25.

• Zero Forex Markup Fee

For travel bugs, this card can help you travel the world with a zero forex markup fee. If you are staying abroad to study or work, the card can help you save a great deal.

• Dining Discounts

The card allows food lovers to indulge to their heart’s content with a 20% discount that is valid in 1500+ restaurants across India. So, whether you like Mughlai, Punjabi, South Indian, Chinese, or Italian food, rest assured you can enjoy a 20% discount on all cuisines.

• Cash Withdrawal

The card allows you to withdraw cash from ATMs without interest charges till the due date. Other banks usually charge 3.5% monthly (42% interest p.a.). Also, other banks generally charge a minimum of Rs 500 per ATM withdrawal. But IDFC FIRST Bank charges a low Rs 199 per withdrawal.

The IDFC FIRST Bank's WOW! Card comes against the security of a fixed deposit. On the one hand, you continue enjoying the interest on your fixed deposit. On the other hand, you can withdraw up to the entire credit limit (equivalent to the fixed deposit amount) on your credit card through an ATM without any interest (up to the due date).

A Stepping Stone to Build Credit History

The IDFC FIRST Bank's WOW! Credit Card is an excellent card in itself, with best-in-class features and benefits. You can use the card to build a good CIBIL score and later apply for or upgrade to other IDFC FIRST Bank Credit Cards.

Start Your Credit Card Journey with IDFC FIRST Bank's WOW! Credit Card

Many individuals realise the importance of a credit card but are unable to get one due to low income or low/zero CIBIL score. The IDFC FIRST Bank's WOW! Credit Card is a saviour for these people. The card comes with the best-in-class benefits against the security of a fixed deposit. At the same time, it helps cardholders build their credit history. They also enjoy the interest on their fixed deposit and other credit card benefits. 

The IDFC FIRST Bank's WOW! Credit Card provides this ideal combination. With its customer-first approach, IDFC FIRST Bank is focused on introducing innovative products that address the financial challenges faced by the masses.

You can also keep track of all your credit card details using a mobile banking app.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.