Minimum Credit Score for Credit Cards in India: Approval Guide 2025
What is a Credit Score?
A credit score is a three-digit number that reflects your creditworthiness. It’s calculated based on your credit history, repayment behavior, and financial management. In India, credit scores are typically provided by credit bureaus such as CIBIL (TransUnion), Equifax,Experian, and CRIF High Mark.
- Range: Credit scores in India usually range between 300 and 900.
- Ideal Score: A score of 750 or above is considered excellent.
- Low Score: Scores below 650 indicate a higher risk for lenders.
Why is Credit Score Important for Credit Cards?
Credit card issuers use your credit score to evaluate your financial reliability and assess the risk of lending to you. A higher credit score implies a lower risk, increasing the likelihood of approval and favorable terms like higher credit limits and lower interest rates.
Key Reasons Why Credit Score Matters:
- Approval Chances: Lenders prefer applicants with strong credit scores to minimize defaults.
- Interest Rates: A high credit score often translates to better interest rates on revolving balances.
- Credit Limit: A good score ensures a higher spending limit on your card.
- Access to Premium Cards: Premium credit cards with exclusive benefits usually require excellent scores.
Minimum Credit Score Requirements for Credit Cards in India
While each issuer has its own criteria, the minimum credit score required for credit card approval generally ranges between 650 and 750. Here's a detailed breakdown:
Scores Above 750
Approval Likelihood: Extremely high.
Card Type: Premium and rewards credit cards like HDFC Infinia, SBI Elite, and ICICI Coral.
Benefits: Higher credit limits, lower interest rates, and attractive reward programs.
Scores Between 700-750
Approval Likelihood: High.
Card Type: Standard credit cards like Axis Flipkart, Amazon Pay ICICI, and HDFC Regalia.
Benefits: Moderate credit limits, competitive interest rates, and cashback offers.
Scores Between 650-700
Approval Likelihood: Moderate.
Card Type: Entry-level credit cards such as SBI SimplySave and Kotak League Platinum.
Benefits: Basic rewards, lower credit limits, and higher interest rates.
Scores Below 650
Approval Likelihood: Low.
Card Type: Secured credit cards against fixed deposits (e.g., Axis Insta Easy, SBI Unnati).
Benefits: Limited features and low credit limits.
Factors Affecting Credit Score for Credit Card Approval
Your credit score is influenced by several factors, including:
- Repayment History: Timely repayment of EMIs, loans, and credit card bills boosts your score.
- Credit Utilization Ratio (CUR): Maintain a CUR below 30% of your total credit limit for a positive score.
- Length of Credit History: A longer credit history indicates consistent financial behavior.
- Types of Credit: A healthy mix of secured (home loans) and unsecured (personal loans) credit is ideal.
- New Credit Inquiries: Frequent applications for credit can lower your score due to hard inquiries.
How to Improve Your Credit Score for Credit Card Approval
- Pay Bills on Time: Set reminders for EMI and credit card payments to avoid delays.
- Reduce Outstanding Debt: Pay off existing debts to lower your credit utilization ratio.
- Avoid Frequent Credit Applications: Limit applications to avoid hard inquiries.
- Maintain Older Credit Accounts: Avoid closing old accounts unless necessary.
- Check Your Credit Report Regularly: Review reports for errors and raise disputes if necessary.
