SBI Credit Card Cibil Score

What is Credit Score? This is what you need to understand primarily. This is the score given by Credit Bureau that collates the credit information about customers received periodically from various financial institutions. The score ranges from 300 to 900 depending on the repayment track, number of existing loans, type of loans and the loan amount and credit card dues. The closer the score is to 900, the more creditworthy you will be considered.

SBI gauges the financial stability and creditworthiness of the prospective credit card customer based on the credit score given by the Credit Rating Agency TransUnion CIBIL. The minimum CIBIL Score for SBI Credit Card is 750 and above.

Credit Cards have gained a lot of popularity in recent times. It is a great source of easy credit and, if judiciously used, can help in upgrading the CIBIL Score. For individuals with no credit score, Credit Cards can be an easy solution to create a CIBIL Score in order to gain access to any credit in the future.

The banks of late have become cautious of defaulting borrowers and so will carry out an extensive background check before approving a credit card application. SBI Credit Card eligibility CIBIL Score is one such background checking medium which will reflect the financial health and repayment history of the applicant. 

The SBI Credit Card CIBIL Score stipulated is 750 and above. It will be very difficult for customers with a CIBIL Score of less than 750 to procure a SBI Credit Card as the proposal will be rejected at the CIBIL verification level itself.

Additional Reading: Top Credit rating agencies in India

Having a good SBI Card CIBIL Score is essential while applying for a credit card. SBI looks forward to issuing credit cards to customers whose repayment track is good. But how does the Bank judge the repayment capacity and the past credit history of the prospective credit card customer? It is here that the SBI Credit Card CIBIL Score and the credit report play a very important role. It gives a clear picture of the customer’s credit profile, financial discipline and creditworthiness.

An SBI Card CIBIL Score of 750 and above is considered good, and the customers with a good score can wade through the initial background verification easily and will also have several other benefits to getting an SBI Card. With a good CIBIL Score, the customer can get the following benefits:

• Quick approval of Credit Card application
• Eligibility for Premium Credit Cards with the best of offers.
• A higher Credit Card limit.
• Lower Interest Rates on Credit Card
• Negotiating power for better interest rates and other charges.

A credit card is a great way to boost up your credit score. There is a 20% weightage for credit utilization ratio. You can enhance the credit score with the help of a credit card as follows:

• Limit the credit utilization ratio (ratio of the credit card limit to the utilization) to less than 30%. This will infer that you do not depend on credit for all your expenditure.
• Do not opt for revolving payment. Aim at paying the entire liability as per the credit card statement instead of making the minimum payment. This way, you will get the advantage of 50 days of interest-free credit and will be sparing yourself from the exorbitant interest burden.
• If you do not have a credit history, you can avail of a credit card and credit a good CIBIL Score by using the card judiciously.

Additional Reading: What is Equifax Credit Score?

CIBIL Score has a great impact on a credit decision. To be eligible for SBI Credit Card, the applicant should meet the minimum CIBIL Score for SBI Credit Card criteria. The minimum CIBIL score required for SBI Credit Card is 750 and above. Candidates with a CIBIL Score of 750 and above carry a reputation of being disciplined in financial management and repayment of loans. Their creditworthiness and credit profile are also represented by the CIBIL Score.

SBI does the first round of background verification with the help of the CIBIL Score and only if the CIBIL Score is 750 and above. Otherwise, the loan application will be rejected. But SBI Credit Card application is backed by Fixed Deposits, then the Credit Card will be issued but only with a limit proportionate to the value of the Fixed Deposit.

Since CIBIL Score has a great impact on the SBI Credit Card approval, it is imperative to manage a good credit score. If your credit score is below the SBI Credit Card CIBIL Score required level, here are some tips for how to improve CIBIL Score to boost your score before you apply for the SBI Credit Card.

• Make payments of all the overdue in the existing loans.
• Clear all the credit card dues immediately.
• Keep old credit cards and loan accounts active as they give an impression of your experience in handling different kinds of debts.
• Have a good credit mix of secured and unsecured loans
• Avoid multiple loan enquiries within a short span.
• Keep the credit utilisation level in existing credit cards to less than 30%
• Review your credit report periodically. The low score may not be due to any of the reasons like delay in repayment, over utilisation of credit, too many loan accounts, etc. There may be discrepancies that have gone unnoticed. Contact the CIBIL Support Group and get the issues sorted, and the score will scale up automatically.

Additional Reading: What is Experian Credit Score?

Being equipped with the CIBIL Score before applying for an SBI Credit Card will spare you the embarrassment of rejection. If the CIBIL Score is below the minimum CIBIL score required for SBI Credit Card, you can set right some of the issues that are reasons for the low score and approach the bank when the SBI Credit Card CIBIL Score is attained. 

As per the guidelines of RBI, every individual is entitled to a free Credit Report once a year. So you can visit the official website of TransUnion CIBIL and generate and check CIBIL Score by PAN Card by following some simple steps. The Credit Report will have the details of your credit history along with the CIBIL Score.

• On accessing the website, go to the ‘My Accounts’ option on the right side corner of the screen.
• Click on the “Get Your Free Report” option.
• If this option is not highlighted, then it indicates that you have already generated a CIBIL Report once in the year.
• In that case, you can still draw the report by providing some basic details like Name, Address, Mobile Number, Email ID and PAN.
• An OTP will be sent to your registered Mobile Number.
• On verification of the OTP, the Credit Report and Score will be displayed on the screen.
• You can then download the Credit Report.

Additional Reading: What is CRIF credit score?

CIBIL Score calculation is done by Credit Bureau like TransUnion CIBIL based on the credit history of individuals as provided by the various financial institutions. The report is made of four factors, i.e., payment history, the ratio of credit utilisation, type of credit with duration and other factors like loan enquiries. Each of these factors will be given a weightage based on the nature of performance.

• Payment history carries a weightage of 30%
• Credit Utilization Ratio carries a weightage of 25%
• Type of credit and duration carries a weightage of 25%
• Other factors carry a weightage of 20%

SBI generates a CIBIL Report the moment the loan application is considered for appraisal. If the CIBIL Score is the required SBI Credit Card eligibility CIBIL Score, the creditworthiness and financial discipline of the candidate will be proved, and the credit card request will be approved if all the other eligibility criteria are met.

If the credit score is below the SBI Credit Card CIBIL Score, then SBI will scrutinize the report to ascertain the reasons for the low score. The report will contain details of the date of the loan, the date of maturity, types of loans, credit utilisation ratio, loan enquiries, the status of the loans, dues past date, etc. On checking the credit report, SBI will draw an inference and, if convinced that the proposal can be accommodated, will issue an SBI Credit Card with a low score. But the rate of interest will be higher, and the credit limit will be lower.

Also Check: Cibil customer care number